The ongoing digital takeover is a phenomenon that is becoming increasingly difficult to ignore.
Digitization is a global mega-trend, causing shock waves across a myriad of industries. Digital technology, despite its seeming ubiquity, has only begun to penetrate industries.
Digitization has barely started
All the talk of digital disruption turning incumbents into dinosaurs and unicorns into masters of entirely new domains might lead many to think this is already an old narrative. In fact, digitization has barely started, and so has the accompanying upheaval.
Digital technologies and processes have penetrated only about 35% of the way into the average industry, meaning that merely a third of a typical company’s products and operations that could be digitized have been. Yet the impact has already been dramatic: Globally, digital disruption is shaving 45% off incumbent companies’ revenue growth and 35% off their earnings before interest and taxes (EBIT).
As digitization accelerates, the hit to revenues and profits of digital laggards will grow significantly, even as the digital leaders capture disproportionate gains.
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Good to great
B2B companies must contend with shrinking product shelf lives, greater price transparency, and a changing cost basis on the one hand while simultaneously growing the capabilities needed to create consumer-like experiences on the other, with personalized service and hassle-free purchasing across platforms and devices.
The hardest part of digitization: Cultural change
Digital transformation isn’t really about technology it’s about organizational agility – organizations culture plays a vital role in the digital transformation of any business.
Shifting to a digital culture
The need for people in any organization to adopt new processes, ways of working, and approaches to break down silos and relate differently to customers is a resultant of the shift in business.
How digitization is changing strategy
Digitization is a step change even greater than the internet. Exponential technology advances, greater consumer power and increased competition mean all industries face the threat of commoditization.
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Digitization and digital transformation – Recommended reading — https://www.torbenrick.eu/t/r/ynw
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