The Study of Disruptive Technology and Innovation Effect on the Transportation Service Businesses

Abstract

The objective of this research is to evaluate the positive and negative impacts of the technological transition from the globalization era to the Internet of Thing era on strategic planning for the transportation service businesses. This transitional environment has enabled innovators to create innovations that define a new problem-solving framework, which was limited by technology from the globalization era. These innovations have completely changed the behavior of consumers. Therefore, expressway and metro train service providers need to realize the importance of their understanding of the wave of change and be able to respond to today's consumers' needs. The analysis of traffic data in big cities including Bangkok, Thailand suggests that most traffic activities originate from the movements of consumers in seeking goods and services for a variety of purposes such as business, education, and general consumption. However, the Internet of Things technology and innovations have induced reverse flows of the traffic activities where service providers are moving towards the customers in delivering products and providing services instead. There are a number of examples for technology and innovations that change the customers’ behavior such as work from home, online education, and online purchase of goods and services via applications. From the past to the present, consumers choose transportation services such as expressway or mass transit that ensures convenience, reliability, and safety. In the near future, however, transportation system users will generate new traveling patterns that are in line with social and economic changes as well as new normal culture. These factors will affect the operation of such transportation services at several levels. Understanding the transformation of technology and embracing the advent of world-changing innovations
in the Internet of Things era, transportation service providers are forced to change, create new business opportunities, and formulate strategies that enable them to excel in the modern world.