the next wave of digitization

The Next Wave of DigitizationZacharie Bennis, Mathieu Jasinski, Brieu Staelens, Maxime Aulit, Baptiste Ducarmois,Thomas Schooneyt

Table of contents Executive Summary The inflection point Three driving forces Dramatic effects Inevitable trade-offs A question on timing The speed of Digitization Conclusion

Executive summary New digital approaches to business have come

on the scene

Entering an even more rapid period of change

Three powerful forces :

- Consumer demand- Push for new technologies- Prospect of even greater economic benefits

Executive summary All companies will be affected and will have to

build the right capabilities :

- To remain relevant in the digitized environment; - To achieve growth; - To fend off competitive threats.

All companies have to make the right choices in the right places, at the right time.

Executive summary This perspective provides guidance to CEOs and

their management teams about :

- the relevance of digitization in their respetive industries

- the factors most likely to accelerate or decelerate the digitization phenomenon.

The inflection point Example of Digitization

- To buy cinema tickets right on Facebook and to invite their friends to joint hem.

- To receive coupons for deep discounts (Groupon)

- Ranchers are embedding into their cattle sensors that send back data on health for analysis.

The inflection point Figures of the wave of digitization

- 4.6 billion phones continually send information on the location

- 10 billion applications have been downloaded from Apple’s App Store.

- 79 percent of workers in Western nations currently depend on the Internet.

The inflection pointBut the coming wave will remake our world all over again.

the trend to global digitization will only accelerate and the digitization invades every aspect of our lives.

- Cloud computing, Social Networking

The inflection point The CEO will have to make a stark choice :

How to invest ?

watch the digital revolution unfold, and run the risk of being outflanked by more forward-thinking OR Begin to invest now in the internal and external digital capabilities.

Three driving forces First Driving Force : the Consumer Demand /Thomas/ Second Driving Force : the Technology Push /Thomas/ Third Driving Force : the Economics Benefits• too early to quantify the benefits • Many investments each years• Country pushing that digitalization

Digital Development in the Worl Developed Markets

• Advantage but aging infrastructure• Slow politics

China• largest number of Internet users

India• strong potential human level

The Middle East• dependent on money from oil and gas

Emerging Markets• do not yet have the infrastructure or knowledge

Dramatic effects Business and consumer insight The companies Will have more and

more informations about the consumer. Social activities, voting, finances, location

Nowadays, consumer digitize their lifestyle. Furthermore, there surrender by more sensors and devices.

Dramatics effects Business and customer insights

Example of impact; Retailers will be able to adapt even faster their products to the taste of the customer.

Johan Bollen has analyzed millions of tweet to detect the national mood. It predicted the impact on the down jones.

Dramatic Effects Productivity

The labor productivity will dramatically rise.

There will more automation process New techniques cheaper will emerge

Example; the use of digital prototype, the cloud,…

The investment will be more accurate (more date)

Dramatic Effects New value pools and value shifts

They are three shift in productivity and business. Most shift will take place within the industries.

The laggard and the winner will be clearly separated.

Consumer will gain; the prices will be cheaper, more attractive offer,… but also an better offer.

They will be the next wave in capital investment.


Publisher and new media has lower revenues du to the new technologies.

There is a widespread concern that the new technologies will destroy this sector.

Although, other industries have been moderately affected by digitization.

They expect an ongoing digitization trough the industries which will rise they revenues.


For the consumer Du to digitalization they’ll get a better

control on their needs The house gas consumption will decrease, they

be able to cut back on unnecessary travel.

Dramatic Effects Digitization will have a deep impact on

the planet Benefits will be highly felt by population

It will extend to all parts of human footprint

Inevitable trade-offs Digitizing a company is expensive CEO has to decide where and how to invest:

How will digitization impact my business model and positioning within my industry’s value chain?

How can I best identify and enter areas where value is being created?

What areas of my business offer new entrants clear opportunities to disrupt my business model?

Which capabilities do I need to build to be a leader?

A question of timing Speed of digitization varies from market

to market Investments as well

executives must gauge their response

The speed of Digitization Privacy problems are rising,

governments could abuse of this array of technologies.

The speed of Digitization Economics and risks

A relative infrastructure is already in place to support digitization.

But the amount of investment required to have a full structure is too important.

Governments pay Billions each years.

The speed of Digitization

Economics and risks This is not possible to invest in both

economics and digitization. This not compatible.

Also, malfunctions and accidents may occur. Thus, these questions about placing faith into digital environment.

The speed of Digitization Regulation and legal considerations

There is a considerable support for digitization Example; governmental and institution.

The debate on the regulation digital infrastructure, regulation and faire use will ongoing.

The speed of Digitization Technology

A numbers of trends are promoting the digitization The implementation of high speed-fixed

equipment and mobile networks are ongoing.

The internet economy has significantly rise due to Metcalfe’s Law.

More users are using the cloud services.

The speed of Digitization Technology

For the CEO and the executive team knowing the accelerators and decelerators for the digitization is crucial.

Digitizing the High-Tech Sector

The speed of the transformation of economy by digitization will surprise many players.

They must rethink everything from the start to the end.


Understand need for the change For example; IBM has buy many companies

to help them making the change. The IBM’s slogan underline this shifting;

« Smatter Planet ».


However, the supplier of high-tech hardware and software. Had made a little –or none- effort for the shift.

Therefore, they will not compete with long thinking terms rivals.


These changes including the following; A shift from moving boxes to software-

based, cloud-centric business models supplying services on demand.

A true multichannel approach A more complex ecosystem with much

higher quality products and services More competition The need for operator to learn a new role.

Conclusion The rate of change acceleratingNo surprise

Take decisions Overcome their shortcomings in terms of

their capital.