52% of the Fortune 500 list businesses in 2000 are gone. Dead.
That’s more than half of the highest revenue-producing companies in the country wiped off the face of the earth. Why? Digital transformation. Companies who saw the writing on the wall and adjusted their operations accordingly are still around and going strong. The others, well,.... not so much.
Digital transformation, or digital disruption, isn’t a passing fad, a blip on the radar, a small wave….. it’s a tsunami. Your business WILL be affected by it, so considering the facts now can prepare you to ride the wave instead of being tossed and drowned by it.
So what is digital transformation, really?
Wikipedia defines it as “the application of digital technology in ALL aspects of human society” (dramatic capitalization ours). Notice the key point? All aspects of human society. This is why we all need to sit up and pay attention– because it’s creeping into items and even services you never would have imagined could be digitized. (Unbelievable but completely true examples to follow in part 2!)
Any technology that connects people, machines, or information is considered part of this revolution. Also referred to as “IoT” or the internet of things, this incorporation of technology is transforming how companies operate and how customers interact with and patronize said companies. Which brings us to the real reason why digital transformation will mean life or death for your business…
It’s not only expected, it’s demanded.
First, the stats:
- Worldwide Digital Transformation Spending in 2017: $1.2 Trillion- IDC Worldwide Digital Transformation Spending Guide
- In the next two years, spending is forecasted to be twice that amount.
- 50% of CEOs expect their industries to be substantially or unrecognizably transformed by digital within 5 years- . Gartner Survey: The Year of Digital Tenacity
- By some estimates, 50% of searches will be voice-activated by 2020
- Around 29 billion connected devices are forecast by 2022, of which around 18 billion will be related to IoT. – Ericsson Mobility Report, June 2017
Why? Because it’s all about customer experience.
With all the interconnected devices and at-your-fingertips information, a new expectation has developed that determines whether or not people do business with you– and that’s ease. Ease of doing business is the deciding factor– not price, not years in the industry, no, just ease. How quickly can they get the info they need? The support they need? The item they want? This all relates to how well you have incorporated technology into your customer experience. If it takes too long, requires too much effort, or necessitates too many clicks….it just won’t happen.
From operating model to infrastructure, digitization is touching every business function in order to streamline, expedite, and simplify the customer experience.
Every size business and every industry needs to start taking a look at how they can improve their ease of doing business score and thereby increase their life expectancy. Even the most unlikely problems have been solved by a digital disruption (spoiler alert! one involves rat traps….).
But where do you begin? Stay tuned to part 2 where we will help you self-diagnose your company’s areas that need digitization, and get your ideas flowing for a treatment plan.
Decrease the business mortality rate. Digitize.
Download our free guide to Digital Transformation now >>>>>>>>>>>>>