If digitize or die is the only way forward, companies are more than halfway to death’s door.
In an article on “The case for digital reinvention,” consulting firm McKinsey & Company pointed out that too many companies are too far behind when it comes to tapping the technology that will ensure they live to see a future.
“Digital technology, despite its seeming ubiquity, has only begun to penetrate industries,” McKinsey researchers noted. “As it continues its advance, the implications for revenues, profits and opportunities will be dramatic.”
On average, according to McKinsey, industries are less than 40 percent digitized, and that 60 percent of leftover opportunity is going to start costing them.
The one industry reaching the digital mainstream is media and entertainment at 62 percent digital penetration, though retail follows closely behind at 55 percent digitized.
“Digitization has only begun to transform many industries,” McKinsey noted. “Its impact on the economic performance of companies, while already significant, is far from complete.”
Read more at Sourcing Journal.