Part 1B of “The Digital Transformation Roadmap”
Digital Transformation is forecast to cause 40% of companies to become extinct (8) and up to 47% of jobs to be automated (9).
Revenue models are threatened at industry-leading companies. Previously, economies of scale with massive advertising budgets captured markets and industries. Now the unexpected is becoming normal, including ad blocking to cause the Internet’s business model to decline for many companies.
Leading companies no longer know what it will take to stay on top as technology takes over today’s lifestyle, and disrupts every part of how their business operates (12).
Take automobiles. Will you buy a Google car that is made by Ford? Or will you buy a Ford car where Google is turned into another automotive supplier?
CEO’s know startups and tech companies work on “doing an Uber” on them to earn most of their industry’s profits — and make them obsolete.
Here are ten of the biggest pain points and problems for today’s companies:
- Uncertain technology and unclear product roadmaps due to rapid advances
- Expensive investments in “Innovation” centers and new acquisitions
- A missing piece: Most companies lowered costs by skipping advanced R&D
- Limited, scarce resources for new initiatives
- Gaps in knowledge and skills on innovation team
- Producing a variety of digital innovations that cannibalize existing businesses
- Lack of integration of innovations with existing company
- Senior executive focus on short-term results, with limited future leadership and vision
- Powerful industry competitors that force defense of current businesses
- New tech-based competition that increases risks from transformations, including new business models as well as new technology
CEO’s are threatened by the need to bring together all the tech advances, deal with these problems, drive revenue growth and deliver market leadership.
- See 4:00 in this John Chambers’ speech at Cisco Live 2015,https://www.youtube.com/watch?v=ujBLqLFNr0s