1. The Next Wave
of Digitization
Zacharie Bennis,
Mathieu Jasinski,
Brieu Staelens,
Maxime Aulit,
Baptiste Ducarmois,
Thomas Schooneyt

2. 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

3. 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

4. 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.

5. 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.

6. 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.

7. 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.

8. The inflection point
But 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

9. 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.

10. 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

11. 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

12. 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.

13. 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.

14. Dramatic Effects
 Productivity



The labor productivity will dramatically rise.
There will more automation process
New techniques cheaper will emerge
 Example;
cloud,…

the use of digital prototype, the
The investment will be more accurate
(more date)

15. 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.

16. Dramatic Effects
 New




value pools and value shifts
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.

17. Dramatic Effects
 New

value pools and value shifts
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.

18. 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

19. 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?

20. A question of timing
 Speed
of digitization varies from market to
market
 Investments as well

executives must gauge their response

21. The speed of Digitization
 Privacy
problems are rising, governments
could abuse of this array of technologies.

22. 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.

23. 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.

24. 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.

25. 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.

26. The speed of Digitization
 Technology

For the CEO and the executive team
knowing the accelerators and decelerators
for the digitization is crucial.

27. 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.

28. Digitizing the High-Tech Sector

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 ».

29. Digitizing the High-Tech Sector


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.

30. Digitizing the High-Tech Sector

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.

31. Conclusion
 The
rate of change  accelerating
 No surprise
 Take

decisions
Overcome their shortcomings in terms of
their capital.