Understanding the Three Horizons of Digital Transformation PPT

This PPT slide, part of the 21-slide Digital Transformation: Value Creation & Analysis PowerPoint presentation, outlines 3 distinct horizons of digital transformation: Digital Norm, Digital Storm, and Digital Form. Each horizon represents a different stage of digital evolution across various industries, highlighting their unique challenges and opportunities.

In the Digital Norm stage, industries like music retailing, consumer electronics, airlines, and hotels have already undergone significant digital transformations. These sectors have adapted their business and operating models, leading to permanent changes. Success in this phase requires organizations to understand the long-term trajectory of their current models and make strategic decisions to align with evolving market dynamics. The focus here is on incremental improvements, such as cost reductions through technologies like Robotic Process Automation.

The Digital Storm horizon includes industries such as retail banking, property and casualty insurance, and mobile telecommunications. These sectors face intense competition from digital entrants and must evolve their business models to remain relevant. Organizations at this stage need to invest in their digital capabilities and may need to reallocate capital from traditional distribution channels to enhance their digital presence.

Finally, the Digital Form horizon encompasses industries like grocery retailing and apparel. Despite the introduction of digital innovations, these sectors experience slower sales growth due to entrenched consumer behaviors and the social nature of shopping experiences. The limitations of current digital technologies mean that they cannot fully replicate the in-person shopping experience. As technologies like virtual reality advance, these industries may see a more significant transformation.

Overall, the slide emphasizes the varying degrees of digital transformation across industries and the strategic imperatives necessary for organizations to thrive in their respective environments. Understanding these horizons can guide executives in making informed decisions about their digital strategies.

This slide is part of the Digital Transformation: Value Creation & Analysis PowerPoint presentation.

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Digital Transformation Big Data Shareholder Value Mobile Strategy Robotic Process Automation Cost Reduction Value Creation Consumer Behavior Sales Innovation

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