Digital is not something businesses can do on the side or put away in separate organizational units to solve it for the rest of the company. Digital’s impact is at the level of the industry’s fabric or DNA and leaders of any company are wise to take this seriously if they haven’t already done so.
Many of the rules and assumptions that guided leaders to manage and grow their business in the past no longer lead to results. Disruption is a real threat to incumbents because competition can come from unexpected players. These new entrants have found new ways to leverage digital technologies to offer superior value for customers and redefine the basis of competition.
Typically, we find that most incumbents are active in the digital space and will have a team of people experiment with a few ideas. This opportunistic approach often overpromises but underdelivers. At best it will provide some interesting products and services but only delivers incremental value, some positive press releases but no significant results that dent the company’s performance.