Digitalized processes using digital technology have only begun to penetrate industries. As this trend continues its advance, the implications for revenues, profits, and opportunities will be dramatic. E.g. the Automotive industry has still a long way to go (most people think this industry is a front runner). It’s not about creating a digital strategy using one single solution or tool to succeed. It’s about reinventing your strategy for the new digital age.
McKinsey has written an interesting paper on the theme, saying that, on average, industries are less than 40 percent digitalized, despite the relatively deep penetration of these technologies in media, retail, and high tech. As digitalization penetrates more fully, it will dampen revenue and profit growth for some, particularly the bottom quartile of companies, according to our research, while the top quartile captures disproportionate gains. The biggest future impact on revenue and EBIT growth is set to occur through the digitalization of supply chains.
Bold, tightly integrated digital strategies will be the biggest differentiator between companies that win and companies that don’t, and the biggest payouts will go to those that initiate digital disruptions. Fast-followers with operational excellence and superior organizational health won’t be far behind.
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