Digital disruption: Data intelligence, digital supply chain and beyond
Over the past three years, there has been much discussion about digital disruption as it relates to businesses and business model innovation. One faction defines it as the process of smaller, entrepreneurial firms that focus on underserved, low-margin markets, then shifting toward domination of the mainstream segment upending the industry incumbents. Others take a less distinctive approach, meaning any form of innovation by anyone who alters value creation that challenges the status quo of existing business practices.
Regardless of how pundits, practitioners and academics define it, all appear to recognize that markets are in flux due to technological advances. The world is truly experiencing a continuous evolution as marketplace categories fuse, new segments emerge and the competitive landscape for entire industries is redefined.
You have seen how the rise of mobile, cloud and IoT have made digitization a core driver of disruption, and it’s beginning to affect virtually every industry. You are driven by a world of immediacy and responsiveness, where consumers have high expectations when they want to make purchase decisions. For example, consumers are empowered as digitization enables omnichannel fulfillment and provides them with many forms of buying and returning products. And this is just the beginning as businesses begin to reimagine ways to provide a superior customer experience.
Yet digitization alone isn’t the key to driving innovation and market advantage. Most CIOs should think of digitization as a highly consumable and viewable “lingua franca” of the firm’s processes, ecosystem and business model. Good examples include the current focus on digital supply chains that are an outgrowth of the earlier movement on supply chain visibility. These efforts have helped improve operational processes such as confirming order ship dates or in-store availability of products promoted online. However, the next phase is building upon this digital content and moving toward intelligence. That’s one of the reasons why CIOs focus on data and analytics as major areas of investment. More intelligence provides greater levels of insight, context and understanding to continuously make better choices about how to design businesses, supply chains, ecosystems and customer experiences. In total, this is referred to as digital intelligence.
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April 14, 2017 at 07:42AM