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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GCC health providers can use customized whole-person care models (WPCMs) to care for subpopulations that are at disproportionate risk of, or suffering from, non-communicable diseases. WPCMs have five elements: a care coordinator, a multidisciplinary healthcare team, care collaborators, informatics, and incentive structures. Providers also need foundational capabilities, with digitization as a core aspect of these capabilities.
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The digital revolution is questioning existing regulatory frameworks and forcing regulators to respond. Regulators have to grapple with these disruptive forces in a manner that will foster both innovation and fairness. The three key areas for regulators to look at, and that require a focus on digitization, are market efficiency, scarcity management, and safeguarding customer welfare.
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The achievement of “information superiority” is a critical determinant of mission success. Developing an information superiority capability requires following five imperatives: treating information as a strategic asset; having centralised governance; building an information culture; taking the right cyber security posture; designing and delivering an integrated ICT infrastructure.
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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.