As an economic theory, creative destruction has been around for over seventy-five years. But, its impact hit me during a recent visit to a tea plantation in Kerala, India.

Trekking through a lush tea estate in the hills of Munnar, I noticed that there were fewer tea-pluckers than I remembered from a previous visit, nearly twenty years ago. A quick check with the guide got me the answer – many of the labourers had been replaced by machines. Only certain types of high-grade teas are hand-plucked now, the others are harvested using machines.

Technology had taken its toll!

In simplistic terms, creative destruction is the idea that advancements in technology will lead to drastic and disruptive changes that spell growth for the ones who adapt and slow death for the ones who don’t.

Not all bad, if you go by the renowned economist Joseph Schumpeter who popularized the term “creative destruction” as the essence of modern capitalism.

So, why should you care?

Creative destruction can impact any one of us. Some of us who are in industries that can easily fall prey to technological upheavals are especially vulnerable.

All you have to do is look around to see how it is impacting people around you.

Hans, a friend who runs a graphic design and printing business is the first to admit that business isn’t what it used to be. Another friend who worked at a travel agency has moved on to the food service industry since that travel business shut its doors a couple of years ago.

There are many examples of businesses that were slow to adapt. Kodak, Blockbuster, HMV, Radio Shack, and Blackberry as leaders in their industry is now history.  The list goes on and on.

Service-oriented businesses seem particularly vulnerable to creative destruction.

If you work in industries like telecom, retail, entertainment, travel, hospitality, and others like them it may be prudent to have a level set on where you stand in the scheme of things.

Technology may not be the only thing contributing to creative destruction.

The impact of geopolitical shifts and socio-economic and governmental policies can also have an impact on our future.

Take for instance the issues currently facing the oil & gas industry. Perhaps, not something that you can plan for. On the other hand, you could be working in the tobacco industry, or for a company that makes plastic shopping bags.

What if you are in the fast food industry?

With the increased awareness of health and well-being, should McDonald’s and Burger Kings of this world worry? Or, adapt?

After all, asbestos was legit once. So was MSG!

So, should you be concerned? Do you have a Plan B?