After reading the article below with the insightful 5 pitfalls from any companies regarding digital strategy, I got curious what we as CommUnity think, how this relates to the energy sector?
Main take aways for me:
1) Fuzzy definition (it's not only digital marketing or 1 IT project)
The incompatibility of current strategies and operations with digital which opens up new forces.
Digital is instant, flawless, free ability to connect people and things worldwide
2) Misunderstanding economics
Digital renders distribution free, 0 marginal cost
Winner takes all: Digital rewards first movers and some superfast followers
First movers: Test and learn, launch early prototypes, and refine results in real time—cutting down the development time in some sectors from several months to a few days.
3) Overlooking ecosystems
Industries will become ecosystems
Seven of the top 12 largest companies by market capitalization—Alibaba, Alphabet (Google), Amazon, Apple, Facebook, Microsoft, and Tencent—are ecosystem players. Only 3% of incumbents have adopted aggressive digital strategy
4) Over-indexing on usual suspects
The importance of B2B digitization, and its competitive implications, is easy to overlook because the digital shifts under way are less immediately obvious than those in B2C sectors and value chains.
Digitizing B2B players are lowering costs and improving the reach and quality of their offerings. The Internet of Things, combined with advanced analytics, enables leading-edge manufacturers to predict the maintenance needs of capital goods, extending their life and creating a new runway for industrial productivity. Robotic process automation (RPA) has quietly digitized 50 to 80 percent of back-office operations in some industries. Artificial intelligence and augmented reality are beginning to raise manufacturing yields and quality. Meanwhile, blockchain’s digitized verification of transactions promises to revolutionize complex and paper-intensive processes, with successful applications already cropping up in smart grids and financial trading. Should the opportunities associated with shifts like these be inspirational for incumbents? Threatening? The answer is both.
5) Missing duality of digital
Pace of change vs degree of change matrix
Read the full article
Why digital strategies fail | McKinsey & Company