There is something called Digital Value at Stake, which describes how businesses could make substantial savings or earnings through digital innovation. However, companies have only captured about 20 per cent of the total value available in 2015, a new research by Cisco suggests.
The research, entitled “Where to Begin Your Journey to Digital Value in the Private Sector”, analysed more than 350 digital use cases through 16 industries. One of the interesting conclusions is that there are six industries accounting for three quarters of the total private sector value globally in the next ten years.
Those industries are: Manufacturing, Financial Services, Retail, Service Provider, Healthcare, and Oil & Gas.
Tech companies and start-ups such as Apple, Tesla or Uber proved to be good at this – the report suggests they are good at creating new business models and challenging industry standards.
There are two things businesses must excel in in order to pull out the maximum out of digital value at stake, the research suggests – they need to be IT-intensive, and must have great convergence between IT and operational technology (OT).
“Our research shows that capturing digital value in the private sector involves challenging assumptions that have underpinned the success of a company up to now, and stress-testing the ways in which you deliver value to customers," said Kevin Bandy, Chief Digital Officer, Cisco. "It means challenging the organization and being willing to make the changes that include its operations, culture, revenue model, technology maturity, and skill sets -- in fundamental ways, and perpetually."
Full report can be found on this link.