Digitalization is the cause of large-scale and sweeping transformations across multiple aspects of business, providing unparalleled opportunities for value creation and capture, while also representing a major source of risk. Business leaders across all sectors are grappling with the strategic implications of these transformations for their organizations, industry ecosystems, and society. The economic and societal implications of digitalization are contested and raising serious questions about the wider impact of digital transformation.
While it is clear that digital technology will transform most industries, there are a number of challenges that need to be understood. These include factors such as the pace of changing customer expectations, cultural transformation, outdated regulation, and identifying and accessing the right skills – to name just a few. These challenges need to be addressed by industry and government leaders to unlock the substantial benefits digital offers society and industry.
The digital revolution is already transforming companies and even entire industries. In this new world, analog
incumbents – large, successful companies that predate the digital revolution – can feel like they are being ‘hunted’ from all sides, with hundreds of startups attacking traditional markets. But our view is that it is not too late for incumbents to adapt, especially as they have considerable resources to fight off the attacks of leaner challengers, including invested capital, strong brands and relationships with customers, apart from a broad range of capabilities and decades of institutional know-how.
Becoming a digital enterprise requires far more profound changes than merely investing in the latest digital
technologies. Companies will need to search for new business models, fundamentally rethink their operating models,
revamp how they attract and foster digital talent, and consider afresh how they measure the success of their business.
Digital Transformation areas:
- Digital business models. Companies need to fundamentally change the way they identify, develop and launch new business ventures.
- Digital operating models. The report identifies operating-model archetypes designed for the digital era and outlines the steps needed to implement them. Digital leaders follow a lean approach to both core and support
- Digital talent and skills. This report takes a look at how enterprises can attract, retain and develop the right talent.
- Digital traction metrics. Many companies have discovered that traditional key performance indicators (KPIs) are no longer effective at measuring the performance of a digital business. The report outlines the digital traction metrics that matter and explain the importance of monitoring – and reacting to – them in real time.