Digital strategy and capabilities to win in a digitized world
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 building the right capabilities for their companies to remain relevant in the digitized environment, achieve growth, and fend off competitive threats.
New technology deployments and related investments will add up to more than even the largest and wealthiest enterprises can afford. Trade-offs will be required, and the risks of making the wrong choices will be high. The basis of competition will be set by the companies that embrace and deploy digitization in the right places at the right time.
To not only survive the digitization megatrend but also use it to their advantage, companies need to be clear about their digital strategy and focus on the digital capabilities they are going to build along the value chain.
Click on the various elements of the image below for more information and key publications on the respective areas.
Digital innovation and product development
Digital supply chain and operations
Digital marketing, sales and service
Workplace and enabling infrastructure
Companies will need to be clear about their digital strategy. All CEOs and their executive teams must answer four key questions:
How will digitization affect our current business model and positioning within our industry’s value chain?
How can we identify and enter business areas where value is being created, both inside and outside our industry?
What areas of our business model are vulnerable to disruptions from new entrants, and how can we best address them?
Which capabilities do we need to build to be a leader in the field?
Key publications from PwC’s Strategy& on Digital strategy
Make human-centered design the heart of your digital agenda.
This second edition of the Strategy& industry digitization study investigates the degree of digitization across 15 industries in Europe. It allows to better understand which industries in which markets are leading the digitization journey and what specific business areas companies in various industries focus their digitization efforts on.
In the course of the next 10 years, a new generation — Generation C — will emerge. Born after 1990, these “digital natives,” just now beginning to attend university and enter the workforce, will transform the world as we know it. Their interests will help drive massive change in how people around the world socialize, work, and live their passions — and in the information and communication technologies they use to do so. In the face of declining revenues from traditional services, the challenge for the communication and technology industries will be to abandon successful but outlived business models and refocus on what it takes to thrive in the Generation C environment.
The pace of digitization is picking up rapidly but the speed at which digitization is taking place varies a great deal from industry to industry. To gain a better understanding of the relative degree to which digitization is transforming different industries, we have created the industry digitization index. Whether they are currently digitization leaders or laggards, all industries can benefit by investing in the input, processing, and output capabilities needed to extend their digital footprints throughout their business ecosystems.
Mobile e-government applications can help governments deliver e-services more efficiently than kiosks or web portals. Successful apps will be well-designed and focused on the main aim of helping constituents engage directly and frequently with the government. Loyalty programs, gamification, and social media will stimulate more engagement with mobile e-government apps.
Media and technology players are under constant pressure from customers, competitors, and investors to innovate their offerings and business models and to accelerate revenue growth. This has led to a growing reliance by digital media and technology companies on high-stakes acquisitions, rather than organic growth, as a critical and rapid means to create and deploy new capabilities and establish new positions in the value chain. We have found that increasing the pace of integration — implementing a “hurry-up offense” — can often improve the likelihood that a digital acquisition produces the results that the acquirer intends.
It is much harder to digitise and socialise when you have a legacy physical product business than if you're in social gaming - but there is no question, those who quickly build their capabilities will capture the most shareholder value from the social revolution.
(Financial Times ‘The Connected Business’ guest column)