Digital transformation is top of mind. Every business wants to be a leader in their industry.
Ninety percent of businesses anticipate digital disruption, but less than half (44%) believe their organization is prepared.
What’s more, it is a race to the top and a winner-takes-all marketplace. According to Ray Wang, Principal Analyst and Founder of Constellation Research, “digital leaders are taking between 40-70% of the overall market share and 23-57% of the profits. In some places if there are only one or two major players, they’re taking up to 77% of the profits.”
In the webinar “Digital Transformation – What Organizations Need to Succeed”, Wang shares how organizations can not only survive but thrive in this environment. We’re going to share these insights.
How to Become a Digital Leader
Firstly, digital transformation is about more than technology shifts. It’s about transforming business models and how we engage with our customers, employees, partners and suppliers.
In fact, Wang defines digital transformation as “the methodology in which organizations transform and create new business models and culture with digital technologies.”
The key takeaway: we must get the business model right first, then determine what technologies will support it. According to Wang, we are living in a “post-sale, on-demand, attention economy.” We can consider these three things as underlying principles of digital transformation.
- Post-sale: what happens after the sale is just as important as the sale. There is a large amount of revenue sitting on the back-end.
- On-demand: we’re no long buying everything at once, but accessing services, products and experiences in smaller increments. Subscriptions have become the standard.
- Attention: if a business is not saving us time or capturing our attention, we’re not interested.
As we transform and imagine new business models we must address these three guiding principles.
The Role of Technology in Digital Transformation
Technologies role is to support our business models. Mobile, social, cloud, big data, and unified communications have had the greatest influence to date on how we improve our customer experiences, empower our employees, optimize our operations, and transform our products.
Going forward, Wang believes there are six technology trends that will support new business models. These include:
- 3D Printing
- Augmented Reality / Virtual Reality
- Block Chain Technology
- Artificial Intelligence / Cognitive
The secret to digital transformation is to think beyond technology shifts and focus on how we can change our business models and the way we engage with stakeholders. By bringing together new, innovative business models with the right technology to support it, digital transformation is possible.
If you’d like to listen to this webinar by Ray Wang, tune in on-demand here.
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 MIT Sloan Aligning the Organization for Its Digital Focus Report, 2016