A common misconception is that Digital Transformation is limited to certain industries, such as the ones supplying “smart homes” or “smart cities”. This is wrong. In fact, nearly every organization is impacted by Digital Transformation. Prominent examples include the automotive industry being challenged by companies such as Apple or Google; the taxi industry being challenged by Uber and others; the banks being challenged by PayPal.
Most industries, both in manufacturing and in services, are facing challenges from the Digital Transformation of businesses – and many of these industries have been facing such challenges for a long time. The Digital Transformation has already started - in several industries it began years ago. Thus, the time for organizations to understand the strategic impact of the digital transformation and identify how to change products, services and business models.
Digital Transformation is here to stay. There is no value in ignoring it. The change is inevitable. In consequence, organizations must check every element:
- Products - move towards connected products
- Services - add service models to their products, where service revenue might even outperform product revenue
- Business models - must adapt to survive and succeed, including creating new products that integrate with services
- Ecosystems - where competition is the new normal, and where new relationships with different customers and business partners are fostered