MASTERING DIGITAL TRANSFORMATION
How do you prepare your business model and organization for digital transformation?
A global cross-industry study by CAMELOT and Heilbronn University
Digitalization has become an umbrella term for multilayer developments that affect value chains at virtually all stages. All executives face today important strategic choices about how to take advantage of fast-moving technology innovations. There is a broad consensus that these technologies will shape tomorrow’s business models and require the major task of transforming the company’s organization.
How do business leaders from automotive, discrete manufacturing, pharma, chemicals, consumer goods & retail feel prepared for the digital transformation and where do they sense gaps that need to be closed?
Different industries, different impact
- Pharma: patient-centric services
- Chemicals: getting closer to the customer
- CPG: focusing on local production
- Manufacturing: business virtualization
The strategic imperative in digitalized value chains: Be the connector not the connected.
Occupy all strategic control positions faster than others.
Understanding the digital evolution
How digitalization impacts business models and organizations
While in the past, digital maturity of business models and organizational structures had been in line with technological evolution, current developments are leading to a disintegration of traditional structures. Existing business models and value chains might be completely decomposed and reconfigured with the help of artificial intelligence (AI).
Players who know how to leverage the right information at the right time by collecting, connecting, and interpreting relevant data will create value through new products and services or through offering already existing solutions in a better or more efficient way. Currently successful business models are no longer possible without considering digital transformation as a key driver.
How to compete in a digitalized future
To successfully compete in a digitalized future, executives should permanently consider and make decisions along six strategic dimensions. The aim is to deliver what the customer will value in the future at appropriate costs.
Customer focus and operations efficiency are the key objectives for future business models, followed by innovation and decision-making capabilities.
Agility – key for future success
In order to support agile business models and quickly respond to changing market demands, adjustable sizing of the workforce is a main challenge. The key measure to allow adaptive capacity is multi-sourcing. Study participants agree that the higher the potential for automation, the higher the rationale for outsourcing.
What will happen to cognitive tasks?