Monetizing Digital — The Importance of Maturity to Manage the "Business Model Shift"

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Business Model Shifts

Ecosystem First Taking an "ecosystem first" approach to delivering new digital new products and services IDC prediction: by 2018, 80% of all chief digital officers will have an incentive to build external relationships with IDC prediction: by 2018, 70% of companies with consumer products normally selling through B2B channels (dealers, retailers etc.) will have rolled out an ecommerce platform to sell directly to customers IDC prediction: by 2020, 30% of all Fortune 2000 organizations will have entered a completely new market outside of their current industry IDC prediction: by 2017, 75% of "product-oriented" companies will have more than 50% of their revenues from services IDC prediction: by 2020, 50% of organizations will have built a shared revenue model with New Markets Targeting a new set of customers that brings a different level of scale and volume that had not been dealt with Customer Experience Delivering an entirely new customer experience through a variety of channels with a focus on ecommerce Developing New Go-to-Market Strategies Creating a new customer relationship that may disintermediate channel partners or distributors in the short term, but absolutely require them for the longer-term value proposition based on a shared revenue model Subscriptions Moving from product to service MONETIZINGDIGITALTRANSFORMATION

For the purposes of this study, IDC interviewed eight organizations to assess digital transformation maturity as it relates to their specific business model shift. As part of the study, we interviewed a good mix of:

B2C B2B vs INDUSTRIES Two retail, two high-tech, two manufacturing, one communications, and one insurance company B2B vs B2CORIENTATION Three B2B and five B2Corganizations BUSINESS, IT & DIGITALPROFESSIONALS Business, IT, and digital professionals(three business, four IT, and two digital executives) COMPANYSIZES Though the average company size was US$19.8B, the smallest company was US$1.1B and the largest US$60.9B

It is clear that digital transformation is impacting all industries, all company sizes, and all types of stakeholders within those organizations. No company or individual is immune to the digital disruption that is hitting our work and personal lives.

We then assessed the digital maturity of each of these and mapped them to the maturity model below:

Mapping Digital Transformation to Maturity

Ad Hoc Opportunistic Repeatable Managed Optimized French Retailer 1 Company Legend Global Automotive Global High-Tech North American Media French Retailer 2 Global Manufacturer Global Insurer Global Technology