Is reintermediation good or bad to digital workers?

It is apparently that the rapid development of technology has allowed the rise of disintermediation between companies and end-users which give more benefits to both stakeholders. However, new technologies also enable a new form of intermediation which is reintermediation to enter the digital workplace, while the its impacts is a sort of double-edged sword.

Add profit margin into the chain

Disintermediation which provide direct interactions between suppliers and buyers allows both sides enjoy more revenues, while reintermediationthe against mode of it, which encourages a new form of intermediaries can also give benefit to both sides of the chain. Take my experience as an example, after disintermediation, as a flight ticket buyers, I only can buy tickets directly from the airline companies where prices are fixed. While the online company, Skyscanner, as a reintermediary of digital worker allows me to buy tickets in a lowest price by comparing various airline companies. In this case, me as the buyers of the chain enjoy more values under the impact of reintermediation. In this sense, both users should consider making use of reintermediation business and companies should discover more profitable opportunities from reintermediation.

屏幕快照 2018-05-23 下午9.42.55

compared results in Skyscanner

Damage the digital labour

Another kind of reintermediation can negatively impact the users. In the case of digital workers who are intermediaries taking work from companies and passing the task to other sub-contractors in the digital labour platforms. This phenomenon might undermine the bargaining power and job insecurityof those sub-contractors such as the “ghost writers”in China, due to lacking direct interaction between end-clients and end-workers. This also leads to more difficulties of their tasks since unclear instruction resulted from the lack of communication. In light of this, these digital labour platform should develop informational transparencyin business chains and encourage direct communications between end-users.

No matter whether the reintermediation largely flows into the area of digital workplace or not, all of the stakeholders should carefully protect themselves as well as proactively consider the potential benefits.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s