In a recent Digital Forum organized by Insead I have also found other insights on what digitalization means. Here are the main findings excerpted from Annet Aris.
- Digitalization has still a lot of room for progression : in Europe the average rate of digitalization (across industries) doesn’t exceed 12%, growing to 18% in the US.
- There will be a significant acceleration in the pace of change in the next years
- Successful digitalized companies generally have managed the digital transition because:
– The CEO implication has been total & concrete
– Digitalization has been focused on customers
– Digital transformation has been possible thanks to a test & learn approach
– New resources : digital natives have been successfully hired and integrated
– There is a 2 speed IT in the company
Digital disruption is not so frequent and few succeed but independently of that most companies will have to face digital transformation of their processes and organization.
On the open Innovation side, culture is a challenge since Corporates still face a lot of difficulties in innovating by building bridges with startups. Best success stories come from targeted acquisitions. An example mentioned is Accenture with the acquisition of Fjord (a design thinking company) and how this helped Accenture change the way it works and approaches Innovation.
As a conclusion we are entering an exciting period of digital acceleration for Companies. Companies should nevertheless be reminded that digital transformation of business models has tone carefully valued to ensure that new digitalized models do generate profits.