Wikipedia defines “digitization” as the process of converting information into a digital format, but perhaps the business world has a broader definition in mind. We are hearing the term in many different business circles regarding the potential to go beyond standard operating models and change business processes by digitizing the business from end to end. But, while there is a lot of talk about the need to digitize information to drive personalization and impact business returns, is it real or just the latest buzzword?
Today’s consumers and business users live in a highly connected world and expect a seamless and personalized experience in the products and services they receive. Across the board from retail to banking to everyday interactions on their mobile devices, digital users expect real-time, personalized, interconnected and automated responses. In a 2015 Digital Business report, 60 percent of the 2000 organizations surveyed indicated they are seeing a positive ROI on their investments in personalization technologies, and 81 percent place the personalized customer experience in their top three priorities for their organization for 2016.
Our always-on economy is moving leaders to recognize the need to redesign business and operating models to meet the demands of the connected consumer. In some cases, entirely new business models have evolved around disruptive digital opportunities. There is a struggle in many organizations to strike a balance between moving towards digitization and remaining profitable, and in some business models it may prove difficult to evolve to take full advantage of digitization. Cisco’s now Chairman of the Board, John Chambers, predicts that as many as 40 percent of fortune 500 businesses will not survive the digitization transition, adding that 70% of companies will attempt to go digital, but only 30% of those would succeed.