The digital economy is a now a reality that creates immense opportunities but also significant threats for all enterprises. The near future will bring driverless cars and trains, flying drones that deliver our packages, internet through your contact lenses, sensors in your clothes, computer screens that fold like handkerchiefs as well as desktop fabrication through 3D printers. The internet of things has the potential to connect 75 billion peoples, devices and things by 2020.
How will a future be, where everybody and everything is always connected and exchanging information? Where digital solutions have perfect know-how about what, when and how to facilitate our lives as much as possible? How will digital advances continue to revolutionize the world we live in?
The shift to digital will disrupt all industries and apply across all geographies. Industries like banking, insurance, telecommunications, retail, transportation, and energy, as well as the public sector, are digitizing rapidly and relentlessly. B2B industries are quick to follow.
Digital leaders constantly seek to understand how digital transforms their business and how they can embrace the opportunities it brings. Digital promises significant financial upsides. Digital leaders can expect to grow revenues by 5-15%, reduce costs by 10-20% and realize potential bottom-line improvements of over 30%
Digital laggards are however higher threatened as their more agile competitors move ahead, new cross-industry players enter their industries and new digital start-ups overturn established industry models.
New Frontier Group has researched digital transformation across multiple industries. We have identified two main paths of digital transformation: an evolutionary path and a revolutionary path.
An evolutionary approach utilizes digital opportunities to evolve within the existing business model to better engage at the customer interface, to provide offers and content relevant and tailored to the customer, to digitize processes and operations, to extend the business ecosystem network as well as to realize better employee and stakeholder engagement.
A revolutionary approach implies a much more fundamental shift of the underlying business model, typically creating a multi-sided business model with a radically extended number of partners in your business ecosystem. Such a digital transformation must build on the power of networks and information.
Digital leaders all follow this model. This is still a very difficult shift for many enterprises today, leaving behind the traditional insular “within organization” model to an open and interactive “outside-in platform” model. However, for those aspiring to be digital leaders such a transformation is required to stay ahead and embrace the opportunities of digital
Digital Transformation Consulting
We provide seamless end-to-end support to help our clients to accelerate their digital transformation and quickly realize financial upsides.
New Frontier Group sees four key steps that describe the digital transformation journey focusing on rapid prototyping and implementation of digital initiatives.
Instead of using technology as a starting point for improving or building up mobile, social, big-data, and cloud (also commonly called SMAC) capabilities, it is critical to pursue a holistic approach and develop a digital strategy that complements and extends the enterprise’s overall strategy.