China
Africa
Explore chapters and articles related to this topic
Disruptive Financial Innovation and Big Data Implications in Digital Finance
Published in Mohammed El Amine Abdelli, Wissem Ajili-Ben Youssef, Uğur Özgöker, Imen Ben Slimene, Big Data for Entrepreneurship and Sustainable Development, 2021
Disintermediation often refers to innovations that allow the omission of assets at the end of the supply-and-demand chain of existing intermediaries. French and Leyschon [64] describe them as Type 1, Type 2, and Type 3. The use of a tool to purchase and sell securities is a Type 1 intermediation. Type 2 intermediation usually involves some sort of asset transformation in terms of liquidity. Type 3 includes efficiency conversion. For example, Since the 1980s, credit card companies have been competing with banks in terms of payments and consumer loans, and these payments are currently being made by digital payment systems developed by fintech companies such as Amazon, Google, and Alibaba. Disintermediation is interpreted in different ways. Some see it mainly as a move from the bank-based brokerage to other intermediaries based on the capital market. Others are business-oriented and look directly into the investment capital without the help of Type 1, 2, or 3 intermediations. In addition, they think that the emergence of blockchain technology can create a real disturbance in financial investment transactions. This is because the blockchain—distributed accounting technology—allows the capital to meet the supply and demand sides online and allow transactions to be performed as a special arrangement that is verified and sealed by secure encryption technology.
Supply chain strategy
Published in Thomas E. Johnsen, Mickey Howard, Joe Miemczyk, Purchasing and Supply Chain Management, 2018
Thomas E. Johnsen, Mickey Howard, Joe Miemczyk
Disintermediation can occur in almost any industry, including capital goods (e.g. aircraft, trucks, passenger vehicles), retail (e.g. books, home computers), or the tourism sector (e.g. hotels, airline flight bookings). Disintermediation often occurs with the emergence of new technology, e.g. the Internet which enables new entrants such as Dell, EasyJet or Amazon to design online customer information systems and bypass one or more stages of the supply chain, e.g. the retailer’s store or travel agent (Chircu and Kauffman, 2000; Evans and Wurster, 1997). Today, the rise of what is termed peer-to-peer marketing or the ‘sharing economy’ means that it is not just disruptive technology which is challenging traditional ways of offering services, but new business models, for example informal tourist accommodation provided by the likes of Airbnb (Cusumano, 2015).
Defining the Retail Supply Chain
Published in James B. Ayers, Mary Ann Odegaard, Retail Supply Chain Management, 2017
James B. Ayers, Mary Ann Odegaard
Each level in a supply chain (e.g., distributor, OEM, or supplier) is called an echelon. Bypassing an echelon is a process called disintermediation. Disintermediation, in some cases, can lower cost, inventory, and lead times. Many supply chain participants, particularly distributors, are wary of disintermediation paths that bypass them. Firms employing a disintermediation strategy must be judicious in setting up a direct path to customers that alienates existing trading partners.
Cloud Disruption Impacts Business IT Role Requirements
Published in Journal of Computer Information Systems, 2022
Brian Cusack, Adekemi Adedokun
The NVIVO data analysis identified the problems of disruption and disintermediation as positive and negative impacts from Cloud adoption (Figure 2). The disruptive technologies drove innovations that interrupted the prevailing order of things, because they were economical, simpler to use, and available as required. This altered the IT supply dynamics, the nature of competition, and threats to the prevailing business models. Disintermediation eliminated the need for a middle tier of software and hardware licensing and opened a direct delivery of services from suppliers to users. Respondents commented that Cloud information architecture allows the choice of services on demand and at an affordable price. The disruptive and disintermediation impacts of Cloud on BIS IT services are two of the seven impacts identified in the data analysis (Figure 2). The changes have benefitted the less skilled and less wealthy customers and opened direct access to IT services previously beyond inhouse capability. New types of market actors are emerging that require elaboration within business plans and evaluation for utilization in business processes. As the business models change, the respondents speak of restructuring, redefinition, redistribution, and new responsibilities for BIS roles. It includes termination of some roles, and the emerging of others. Respondent PO2 (IT Audit Manager) says:
Analysing perceived role of blockchain technology in SCM context for the manufacturing industry
Published in International Journal of Production Research, 2021
Amit Karamchandani, Samir K. Srivastava, Sushil Kumar, Akhil Srivastava
Fifth, the direct effects of PBB can significantly drive the increase in profitability of the organisation. It implies that the ‘cost savings’ aspect of blockchain benefits (such as reducing paper costs, transaction costs, and audit costs) is believed to be a significant factor that can improve profitability. Sixth, the conditional indirect effects in Figure 5a and 5b show that the organisations with higher IT integration and lower integration intensity are believed to achieve better profitability based on blockchain-driven improvement in delivery reliability. It implies that organisations with high ‘IT integration’, low ‘integration intensity’, and delivery reliability as an SCM pain point are likely to be the early adopters of blockchain. The moderating effect of ‘IT integration’ and ‘integration intensity’ is not significant for the remaining five SCM dimensions as mediators, indicating uniform perception among organisations with varying ‘IT integration’ and ‘integration intensity’ respectively. Seventh, the findings have several societal implications. Based on the results, society can expect newer business models in times to come. Based on the changing requirements, the employees may require a regular upgrade of their skills to retain their jobs. For example, blockchain enables costless audits, which may result in layoffs in audit firms. At the same time, new organisations that ensure correct information entry on blockchain at suppliers’ premises may emerge. The non-value adding intermediaries are likely to lose their business, and hence they need to safeguard their interests by taking suitable preventive measures. The manufacturing organisations may save significant costs due to disintermediation, which may lower prices for the customers. Customers are likely to become more quality conscious, and product traceability information would be a common expectation. In such situations, the organisations not willing to adopt blockchain are likely to lose their market. Further, customers can expect close to real-time closure of their grievances, on-time deliveries and trustworthy information about purchased products. Hence, customers will gain several benefits concerning product quality, timely delivery, customised products, lower response time, reliable information and lower prices due to blockchain adoption in the manufacturing industry.