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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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.
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Electronic payments have essentially become a commodity for financial institutions, and most recent innovation has come from new market entrants, which are capitalizing on mobile platforms, social media and other technology. Financial institutions can capture this opportunity as well, provided they can leverage the wealth of data they control.
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The fourth industrial revolution — characterised by the increasing digitization and interconnection of products, value chains and business models — has arrived. German industry will invest a total of €40 billion in Industry 4.0 every year by 2020. Applying the same investment level to the European industrial sector, the annual investments will be as high as €140 billion per annum.
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How to make data your source of sustained growth.
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The retail ecosystem is changing. Consumers are now curating their own brand experience using online, mobile, and social, interchangeably, along their non-linear paths to purchase. This new retail landscape is impacting the capabilities and organizational considerations brands need to succeed. Here’s Strategy&’s take on which areas they need to watch, in order to thrive in the new e-commerce world.