By 2025, almost every industry will be transformed by the convergence of analog and digital business models. About 80% of all companies are still at the beginning of the transformation. A study shows how companies can improve and adapt digitally. The economic future is not digital or physical, but both: “digital”. This forces companies to make major changes. A study explains the opportunities and potential of the networked offline and online world. Digitization is displacing many analog types of businesses. To this end, the development of approximately 300 companies from various sectors has been addressed and numerous interviews have been conducted. The result: digital approaches are used by successful companies to further develop physical procedures. This ensures profitable growth. A recognized expert says this is just the beginning. Digitization has so far fully covered only a few sectors. In ten years it will look different. In all sectors, companies must adapt due to new technologies and changing customer behavior.
Digital transformation is made possible by the Internet of Things (ie the ability to connect all types of devices). This technology allows devices to be operated, maintained and controlled more effectively. In this way, manufacturers can upgrade the analog range and improve customer benefits. Thanks to these advantages, previously purely digital business forms are increasingly becoming analog. Some e-commerce providers are open to this and present their services in physical retail. Experts believe that some service providers and industrial entrepreneurs are afraid of not being able to keep up. The strengths and potential of growing technology are overlooked. However, their core business must continue to develop and integrate the technology.
Change takes work
For the development of digital business strategies, an industry diagnosis must be implemented. There are questions that must be answered. How strong and how fast will the entire value chain change? In some industries, parts of the chain have remained unchanged. For this, other parts of the same industry have undergone major changes. If endangered areas are known, a strategy can be developed at an early stage.
Almost 80% of all companies are still in the early stages of adaptation. This is followed by three phases until the digitization is mastered.
Companies want to make rapid progress. Ultimately, the customer decides when to use the technology. Some ideas need to be introduced gently. The example of self-driving cars in the automotive industry shows that many customers do not yet trust the technology.
By integrating digital technology into a physical product, two worlds can become one. So far, only a few companies have dared to make this paradigm shift. Experts call for action. Companies can only survive if their business model becomes digital.