April 24, 2017
Posted by: DevDigital
In an article written by Jacques Bughin for McKinsey, he discusses the increasingly prevalent need for businesses to adopt digitization into most facets of their operations. Below are his three “key insights” about the future of digitization. The rest of the article can be read here.
- The economic pressure that digitization exerts is large and will increase with time. This makes it increasingly urgent for businesses to act. In time, all companies, no matter what their industry or how well they’re performing today, will be affected, the research shows—and those that have made the least progress on their digital journeys will suffer the most.
- Your investment in digitization needs to be precisely targeted. While a multi-dimensional approach is crucial, simply spreading the same amount of resources across all the dimensions is a losing proposition. Investing in digital distribution, for example, merely keeps you in the game: not doing so puts you at disadvantage, but doing it doesn’t provide a competitive advantage. To gain that advantage, you need to differentiate yourself by investing in the other dimensions that have seen less adoption, such as creating a digital ecosystem or revamping your supply chain.
- Digital strategy should not be built in a vacuum. Instead, it must be grounded in the broader corporate strategy that leverages digitization to tackle new business opportunities. The key to effectively responding to a digitizing world lies in applying bold, tightly integrated strategies to all the digital dimensions.