For more than a decade, powerful new digital approaches to
business, and life in general, have come on the scene, yet we
are now entering an even more rapid and dramatic period
of change. The phenomenon of digitization is reaching an
inflection point. Three powerful forces are driving the shift:
consumer demand, the push for new technologies, and the
prospect of even greater economic benefits.
Every company in every industry will be dramatically affected,
and it will be the responsibility of CEOs to lead the charge by
building the right capabilities for their companies to remain
relevant in the digitized environment, achieve growth, and
fend off competitive threats. New technology deployments
and related investments will add up to more than even the
largest and most resource-endowed enterprises can afford.
Trade-offs will be required, and the risks of making the wrong
choices will be high. Unlike the technology revolutions of the
1990s and 2000s, this time around the basis of competition
will be set by the companies that embrace and deploy digitization in the right places at the right time.
This Perspective provides guidance to CEOs and their management teams about the relevance of digitization in their
respective industries, and the factors most likely to accelerate
or decelerate the digitization phenomenon. The judgments
that companies make now will largely determine their relative
competitive position for the foreseeable futur