Your Digital play is INSIDE
Most companies have been focusing their digital efforts on their OUTSIDE marketing ... but, "The aspect that makes the biggest difference in successful digital reinvention is morphing from products to platforms, which means adapting supply chains and leveraging ecosystems."
Mckinsey's Director of their Global Institute has done the research ...
"Digitization of supply chains accounts for more than 75% of the impact on incumbents’ profit growth"Here are 3 hurdles to get over:
1. Launching a digital platform requires a willingness to disrupt your industry, and your own business. To date, only 10% of companies have dared to take that route; the majority fear self-cannibalization and the loss of their current dominant position — even though this position may prove short-lived as digitization advances.
2. Moving into the platform game is hard for companies with legacy IT investments. Building a digital platform requires an agile and scalable IT architecture — something for which most few incumbents prepared in their past technology investments.
3. The platform game requires an allo-centric rather than ego-centric approach. When investing in a new industry ecosystem, the primary focus should be on growing that ecosystem’s total value. That’s not a natural mindset for traditional companies. Most incumbents worry mainly about their own share of the pie, not about growing the pie for everyone. This is a strategic mistake, as I argued in a 2015 article in the Journal of Digital & Social Media Marketing. The best way to ensure a high share of the digital ecosystem is to both shape it and distribute value fairly in the network, which helps ensure that others adopt the platform and make it sustainable.
"The incumbents that succeed in the digital future are those that cultivate organizational agility, an ecosystem mindset and willingness to self-disrupt."
See this overview of the varying degrees of Digitization in several industries...
Hint #1: The opportunities are in Hospitality, Healthcare, Entertainment and Recreation, and Real Estate.
Hint #2: Here is an infographic showing that there is HUGE need:
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