If you don't remake your industry, someone else will do it for you: Raskino
- Every industry will be digitally remastered
- Technology will redefine your core products
- Attack will come from outside and underneath
- Control of the platform will win the game
Every industry will be digitally remastered
"Digital" is quickly becoming a business strategy keyword, said Raskino. So pervasive and disruptive is the Nexus of Forces that nearly half (49 percent) of the 391 global CEOs and business executives polled by Gartner report having a digital strategy in place. Raskino further emphasized the digital imperative with a 2013 quote from Wolters Kluwer CEO Nancy McKinstry: "When I took over as CEO, 70 percent of our revenue came from print products. Ten years later, over 75 percent of our revenue comes from online, software and services."
- The "Great Recession" of 2008 is now behind us; business leaders are turning their priorities, however cautiously, to growth.
- Investment capital is piling up. Many companies are "embarrassed" by the size of their cash reserves; investors are itching for their returns.
- BRIC growth is slowing: the economies in Brazil, Russia, India and China has slowed in recent months; business leaders need to look elsewhere.
- The disruptive potential of many technologies has been backing up unused for years. Technologies like Cloud and Social are now less risky and more reliable.
- More than any other example, the failure of Kodak has caused leaders around the world to rethink everything. "Companies understood what was happening when the music industry changed, but many thought they were immune because they made physical products."
Technology will redefine your core products
- On the golf course: smart golf balls track the impact of the club and the trajectory of their flight, then relay that data to the owner's mobile phone in real time. Meanwhile, automated lawn mowers trim the greens in precision custom patterns.
- On the tennis court: racquet maker Babolat's new instrumented racquets captures and streams every aspect of a player's game - swing velocity, angle, impact point with the ball - to an iPhone. Next year, the International Tennis Foundation (ITF) will allow the use of smart raquets for the first time.
- In Dubai, sensor-driven robots now scale the sides of its gleaming office towers, oblivous to harsh desert winds. Smart trash bins alert garbage collection trucks when they're full to optimize their routes and cut down on fuel costs.
- In the UK, Domino's pizza experiments with pizza delivery drones.
- In the tobacco industry, e-cigarettes give smokers the desired nicotine hit wrapped in flavors like bubble gum or blueberry.
- In finance, Bitcoin competes for legitimacy with hard currency issued by national governments. Increasingly, it wins.
Attack will come from outside and underneath
Control the platform, master the industry
What CIOs must do now
- Organize for digital at the C-level - look for leaders who can drive change.
- Make digital a core part of your business strategy - a standalone strategy is simply old media in new skin.
- Ensure core product innovation is included - any product you make can be connected and advanced.
- Fund digital business seriously - cancel other projects if need be.
- Talk to your competitors - they're in the same boat.
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