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.
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.
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 PwC’s Strategy& on the impact of digitization in a broad range of sectors, functions, and regions.
What's hot: Our latest publications on Digitization
Prepared by Strategy& for Facebook in support of its Internet.org initiative, the ‘Connecting the world’ report identifies mechanisms that can accelerate Internet growth and drive universal inclusion.
As digital deals increase, acquirers are faced with challenges that digital M&A present at every phase. strategy+business examines the main types of digital deals, the common challenges associated with them and ways to avoid or overcome them.
Digitization and the internet are often named as the root causes for some of the creative industries’ biggest problems - but a report released by Strategy&, and commissioned by Google Inc., has found that the vast majority of all growth generated in today’s creative industries is digital.
When it comes to the development of digital services, banks in Western Europe have neglected the needs of small and medium-sized enterprises (SMEs). If they are to beat back competition from upstart technology competitors, banks must develop higher levels of personalization, enhanced opportunities for SMEs to access financing online, and roll out true multichannel offerings. The results will be efficiencies that lead to lower costs and increases in customer satisfaction and loyalty.
The continuing success of digitization initiatives in the Middle East brings with it an added and growing exposure to the risk of cyber-attacks, whether from other states or criminals. Countries need a strategic response that mobilizes stakeholders and builds preventive and reactive cyber-security capabilities.
Emerging markets offer consumer packaged goods (CPG) firms and retailers great untapped potential for profit. Yet the two sectors often act as rivals. Shelf-centered collaboration – collaborative analytics infrastructure and management practices based on point-of-sale data shared by CPG firms and retailers – already exists around the world. It yields dramatic benefits wherever it is applied, especially when linked with strategy. Because there isn’t yet much experience with it in emerging economies, collaboration of this sort has particularly high-leverage potential.
As telecom operators move ever more rapidly into the age of digitization, a growing number of them are appointing high-level executives to lead the charge: Chief Digital Officers (CDOs). Their charge is to gather the cross-functional expertise and capabilities needed to take advantage of their companies’ privileged position as enablers of the digital revolution.