The digital storm will impact every industry that is why it is important to understand what the digital storm is, how the digital economy is impacting industries, and the two emerging approaches companies are taking to drive the transformation.
Digital technologies will impact every industry and business, it will transform the way products and services are delivered and monetized. These technologies are connecting people, the internet, and the physical world like never before. When everything is connected: cars, homes, farms and patients, business, as usual, becomes a thing of the past and the transformation of many industries accelerates. Here is a Digital Storm model to describe the impact of digital technologies on various industries.
There are three stages of the digital storm, but eventually, all industries will be in the eye of the hurricane.
HURRICANE:
Industries that are primarily consumer-driven such as banking, retail, and entretainment are already in the eye of the storm. Improng value position, convenience, and overall customer experience is key to success.
SEVERE STORM:
At this stage, we find industries like utilities, automotive and industrial machinery industrial machinery that are looking for ways to leverage IoT and machine learning to either change the way they deliver value or significantly reduce their cost structure.
HIGH WINDS:
Asset intensive industries that are more focused on business process innovation and workforce productivity. For them, digital transformation is composed of multiple small innovations that is going to deliver incremental value.
There are two different approaches companies can take the top-down and the bottom-up approach. A successful digital transformation requires the right approach and the right leadership to drive it. How do you know which approach you should take? It all depends on the organization maturity and the goal of the digital transformation. Some companies are looking to set up digital innovation outposts; others are planning full-scale transformations, but all projects call for commitment and a clear strategy. Take a look at both approaches:
Both approaches have their own opportunities and challenges, but success ultimately comes down to how well digital initiatives are planned, prioritized, and executed. Consensus will help you decide which is the best for your company, either applying only one approach or both approaches simultaneously and scale up your business with innovative technology.
Download the Digital Storm Whitepaper to learn more!
