Digital Strategy
€5,000.00
Duration: 30 min
Digitization is fundamentally altering the nature of competition. Incumbent companies face critical decisions when it comes to addressing digitization. Companies need to make several key decisions around how they’re going to address digital. The first one is “are they in the right businesses to start with?” It’s true that companies have been using technology for many decades. But a few things have changed. First of all, customer expectations are very, very different now. We know that around 80 percent of purchases are researched online before a customer goes into a store. Indeed, many customers now prefer to complete the purchase online. Even in groceries, over 50 percent of customers in the world now will shop online and actually make the purchase. The second thing that’s changed is that the cost of delivering high-end IT solutions is reducing all the time. Historically, it would have been very expensive, and a lengthy process, to deliver a highly functional technology solution that customers would want to use. That’s no longer the case—it can sometimes be done now in just weeks or months. Digital is fundamentally shifting the competitive landscape in many sectors. It allows new entrants to come from unexpected places. We’re seeing banks get into the travel business in some countries. We’re seeing travel agents get into the insurance business. We’re seeing retailers go into the media business. So your competitor set is not what it used to be.