Digitization

Thanks to digitization, companies across industries are racing to migrate "analog" approaches to customers, products, services, and operating models to an always-on, real-time, and information rich marketplace. Some leaders are redesigning their capabilities and operating models to take full advantage of digital technologies to keep step with the "connected" consumer and attract talent. Others are creating qualitatively new business models — and tremendous value — around disruptive digital opportunities. In doing so, these companies secure not only continued relevance, but also superior returns.

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By the year 2020, an entire generation will have grown up in a primarily digital world. Their familiarity with technology, reliance on mobile communications, and desire to remain in contact with large networks of contacts will transform how we work and how we consume.
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Every company in every industry will be dramatically affected by the digitization megatrend, and it will be the responsibility of the top teams to lead the charge by developing the right strategy and building the right capabilities for their companies to win in the digitized environment.
The impact of digitization also affects the supply side — the collection of industries and companies, including the traditional IT service providers, the telecom companies, and the hardware, software, and Internet players that are creating the technologies for this brave new world.
Read more thought leadership from Strategy& on the impact of digitization in a broad range of sectors, functions, and regions.

What's hot: Our latest publications on Digitization

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Traditional media companies have recently started partnering with or acquiring multichannel networks. The next step is to help the networks produce more content, seek out global audiences, and diversify their distribution and revenue streams beyond YouTube.
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Online grocery shopping still hasn’t caught on in Europe, due to both supply and demand problems. Rather than replicating what they have done offline for decades, retailers need to develop specific online value propositions. By choosing the right one — and developing the operating model to support it — retailers can profit from online grocery sales.
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Companies need to understand where they stand in terms of big data maturity so that they can progress and identify the required initiatives. This involves examining their environment readiness, the extent of legal and regulatory frameworks, and ICT infrastructure; their internal capabilities; and the many methods for using big data.
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The telecommunications industry has been critical to the process of digitization across other sectors, yet the industry’s own efforts to transform the way it markets, sells, and supports its services have lagged.
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Companies in every industry are trying to find new sources of value through digital technology. But most of their efforts have not translated into enough market impact and growth.