By 2018, one third of the top twenty market-share leaders in most industries will be significantly impacted by new competitors -- and "reinvented" incumbents -- that proactively apply digital technologies to create new services and associated business models.
According to the latest market study by International Data Corporation (IDC), the adoption of Digital Transformation (DX) methodologies will eventually disrupt the status-quo of all traditional enterprise business models and established strategic partner ecosystems.
Business leaders are therefore challenged to move their enterprise to the next level of commercial competency -- by employing new digital technologies, coupled with organizational, operational, and business model innovation that will differentiate them in the marketplace.
Their ultimate goal is to create new ways of operating and growing their commercial venture within the rapidly evolving Global Networked Economy.
Framework for Digital Business Transformation
To help savvy executive leaders achieve this goal, IDC has developed the 'DX MaturityScape' to profile the challenges and opportunities that this transformation will introduce into their legacy environment.
They provide a framework for developing coherent, forward-looking strategies and plans that optimize the ability of executive IT leadership to positively transform the customer experience, information management, operating models and workforce management processes.
IDC also describes business-enhancing attributes of what they call the '3rd Platform,' which incorporates mobility, social business, cloud computing, big data and analytics software.
This study identified key areas in need of improvement:
- Leadership DX - requires that leaders become more sophisticated in their knowledge of the enterprise ecosystem. This includes the digital accessibility of markets, customers, and service providers, in order to anticipate and develop product and operational innovations that extend market share and increase revenue by creating shared digital experiences.
- Omni-Experience DX - the ability to continually attract and grow loyalty with customers, partners, and employees by creating interactive experiences.
- WorkSource DX - the transformation of the way enterprises access, connect, and leverage talent through the use of digital technologies.
- Operating Model DX - describes the ability to make business operations more responsive and effective by leveraging digitally connected products or services, assets, people and trading partners.
- Information DX - the ability to leverage information for competitive advantage by enabling the business to respond to opportunities swiftly and with superior intelligence.
"Digital technology has and will continue to alter the landscapes of business, education, healthcare, and government. The past couple of years have seen breathtaking change at an accelerating pace," said Meredith Whalen, senior vice president at IDC.
IDC believes that digital business transformation will be used as an essential tool that helps forward-thinking executives to create self-adapting teams within their organizations, capable of rapidly responding to change in the marketplace. These organizations will not only survive the inevitable market disruption in their industry, they can also thrive on it.