Who Are the Digerati in Your B2B Industry?
Stay Calm and Go Digital doesn’t sound right unless you’re already on track with a solid digital transformation strategy.
If you happen to be one of those companies that has embraced the digital cultural revolution, then you’re ahead of the pack. Many companies are just starting to learn how to conduct ‘the audit’ to understand the threats and opportunities and assess the level of digital maturity in their company.
There is no denying that the proliferation of digital, social, video and mobile is making changes happen in many ways we have yet to experience.
“The future is arriving quickly. Take action now to create your own digital advantage.” This is the advice from Phillippe David, of Capgemini Consulting. In a recent article published by Utility Products Magazine, Mr. David outlines both a diagnosis and a prescription for increasing the adoption of digital transformation inside utility companies, which can be applied for almost any other industry.
In November 2012, the Capgemini Consulting group and the MIT Center for Digital Business ended a two year study with almost 400 global firms. This study examined companies that were considered to be the most Digitally Mature – the “˜Digerati’ across 15 different industry sectors. The companies ranged in size from $1 billion to over $20 billion in revenues.
The findings clearly showed across all industries that the Digerati generate on average 9% more revenue and are 26% more profitable. The findings make a clear case for every top management executive to look at how digital maturity should be one of their top priorities.
“The future is arriving quickly. Take action now to create your own digital advantage.”
Phillippe David, Capgemini Consulting
As it turns out, of all 15 industries participating, utility companies had the lowest stats, only 20% were digitally mature. This was much lower than other industries including some of the top performers such as telecommunications (30%), travel and hospitality (31%), Insurance (33%), banking (35%) and technology (39%).
The full report, The Digital Advantage: How Digital Leaders Outperform Their Peers in every Industry, shows how there are many misconceptions and myths that are making it hard for senior executives to implement change. The following chart shows how managers can shake the myths and better understand the opportunities to make Digital Transformation happen.
In his diagnosis, Mr. David is clear that digital transformation needs to happen on both the inside and outside. “Digital reaches across an entire business and impacts it in diverse ways. It must be approached as an integrated, holistic, long-term undertaking. Investing in digital is not as simple as it sounds.” This often a reason for why companies have “˜stalled out’ in analysis paralysis.
Answers are not as simple as Twitter tactics, cloud automation or other fashionable trends. The real answers lie in having a strategy of how the company will bring together a range of technology investments – social integration, big data, the Internet of things, mobility – around the three core business areas which are important to any business:
- Customer Experience
- Employee Experience
- Asset Management
In its conclusion, the report states the following:
- Digital maturity matters. Digerati are statistically and significantly more profitable than their competitors, and the markets reward them.
- No firm is immune from digital transformation. Every company in every industry already has competitors who are the Digerati.
- It takes time to become digitally mature. Senior executives should take active steps immediately to consider opportunities and threats available from digital transformation within their industry.
Finally, before you decide to act, map out a strategy for your digital transformation based on common best practice patterns of digitally mature firms which you choose to emulate in your own model.
Who are the Digerati in your industry? Is your company in the Big D top three? Let us know by sharing your thoughts and suggestions below or on Twitter (@SterlingKlor).
Next month, we are launching The B2B Digital Maturity Series. This new collection of blog posts will provide more tips, tools and insights to help B2Bs provide relevant content, convert more leads and help buyers to buy using a strategic mutli-channel marketing approach.