The digital economy is upon us. The pace of innovation is rapid and the face of leadership is transforming as we morph human ideas with advanced technology. In the age of digital leadership, companies must be receptive to the kinds of micro revolutions that happen every day and the cultural changes that empower their team, their customers, their products, and their world. Is your business ready for the changes ahead?
In a recent report by Harvard Business Review Analytic Services and sponsored by Microsoft, we uncover the landscape of competition in 2020. The report, called Competing In 2020: Winners and Losers In the Digital Economy details the crest of digital disruption and what it means to be a digital leader today. Here are some of the highlights.
Optimism in Disruption
80% out of 783 survey respondents believe that their industry will be disrupted by digital trends. 84% believe that their industry has already passed ‘the inflection point of disruption’ or will pass it in the next three years.
“Companies that form their strategies now, shift resources to new digital initiatives, and redesign their organization and culture will have a distinct advantage,” the report contributes.
Luckily, there is a general optimism surrounding the leap into digital. In fact, many businesses recognize the value that the digital revolution is bringing, namely enhanced customer relationships and greater value chain integration. Right now, the highest digital priority is exceptional customer service, a pursuit that will lead a new era for the customer-centric business. The next priority is enhanced operations. This involves enhancing the way products are ‘conceived, developed, sourced and delivered.’ It also means bringing greater speed and intelligence to the things businesses are already doing.
A Lack of Digital Participation
While businesses are naturally embracing the digital revolution in attitude, what we’re seeing is that non-digital businesses are yet to take real action. “Over the next three years, while digital leaders are realizing and quantifying the benefits of their digital investments, hybrids should focus their efforts and bring them closer to the core of the business. Non-digitals should make it an urgent priority to find their place in the new digital landscape,” the report suggests.
Disruption in Diverse Industries
What we’re also seeing is that the call for disruption does not exist solely in digital-facing businesses. It’s relevant and “very likely” for a wide range of industries out there, according to respondents.
Perhaps the most concerning point of reference in this report is that:
less than half of respondents (47%) have ‘developed and communicated a formal business strategy for the digital future.’
Again, this depends on the business’ situation on the digital spectrum:
- 72 percent of digital leaders have a formal strategy
- 49 percent of hybrids have a formal strategy
- 24 percent of non-digitals have a formal strategy
It also varies by industry as well:
-70 percent of tech companies have a formal strategy
-58 percent of financial services firms have a formal strategy
-27 percent of government organizations have a formal strategy
-34 percent of healthcare companies have a formal strategy
-39 percent of retail companies have a formal strategy
No matter where you stand on the digital spectrum or within your industry, it’s time to get to the drawing board and start planning! As the Harvard Business Review report concludes, “To remain relevant, business leaders should develop and communicate a strategy for the digital economy while at the same time remaining flexible and ready to shift gears as the market changes. This requires a willingness to take risks, and the investment of resources—funding, people, and technology.”
At BlockCerts Blockchain, we are passionate about guiding your business success in the digital economy. By entering into the world of blockchain technology, you are already a huge step ahead of other businesses relying on archaic technologies and software models. We look forward to helping you become the best digital leader possible and working with you to build a tailored strategy to sustain your competitive edge in 2020 and the many years to come.
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