Hi, welcome on your digital journey. I am your digital companion and will guide you on your trip to digitisation:
Have an inspiring journey.
Software and digital technologies are fundamentally transforming almost every industry. Digital technologies have become crucial to build efficient processes, a primary driver for differentiation and a superior creator of value for many products and services. However, due to the wide range of possibilities and the great speed at which technologies evolve, many companies have difficulties formulating a digital strategy and deciding in which domains to invest. This digital journey tracker aims to help companies explore potential digitisation pathways across three impact areas (organisation, offering and business models) based on which type of company they are (physical product builder, digital product builder, services company).
Digitisation has a major impact on every company's organisation and activities, from manufacturing to workflows and marketing. These transformations have been happening for decades but technological developments keep interfering with the process and have led to new generations of solutions for digitising (business) processes both within and between companies. Examples of such emerging trends are industry 4.0, which refers to the digitisation of manufacturing processes, and blockchain, which has the potential to disrupt transactional processes. This kind of transformation affects companies' organisation. We discuss a number of important processes with more topics to be added over time.
Digital technologies can have a profound impact on the way companies create, deliver and capture value with their products and services. Companies add software, data-enabled functionality and intelligence to products to make them interact with other products and services in their environment. Furthermore, the Internet and continuous connectivity greatly affect both the way value is delivered and interaction with customers. This kind of transformation impacts companies' offering. We discuss different strategies for working on value creation, delivery and capture for different types of product.
An increasing number of companies, from a wide range of sectors, are starting to develop digital services and adopt scalable business models based on digital technology. The way companies use software will play a key role in how they innovate, scale up and expand their activities. This kind of transformation has a profound impact on how companies create revenue, often evolving from straightforward sales to more continuous models of value delivery and capture. These transformations affect companies' business models. We discuss a number of tactics for creating business models based on digital services.
Physical product builders are companies that develop and bring to market a product that contains a hardware component (e.g. materials, electronics, mechanics). These companies are now mainly looking to innovate in two areas. Firstly, they are seeking new ways to add value to their products so as to continue to differentiate them from those of emerging and existing competitors. Secondly, they are innovating within the manufacturing and industrialisation processes to better align them with today's needs.
Digital product builders are companies that develop and bring to market a digital (software) product. It is becoming more and more difficult to establish a profitable software business as customers increasingly expect software to be very cheap or even free. Therefore, digital product builders must combine excellence in software engineering with an in-depth understanding of how to create and capture value beyond the traditional model of selling licences.
Service providers are companies that provide organisations with consulting, expert advice, maintenance, real estate, storage, processing, and so on. These companies' competitiveness is under threat from lower margins and competition from (foreign) companies operating in local markets. To stay competitive, they need to meet two challenges: scaling up service provision (offering services in higher volumes and/or in new geographical areas) and achieving higher added value.