Insights

Incumbents in the Digital World

Laggards will be losers.

The digital revolution is fundamentally transforming the global economy. It is creating challenges and opportunities in all areas, from value proposition to operating model, culture to economics.

Thierry Mennesson, Partner, discusses Oliver Wyman's unique approach to digital transformation.

This article and interactive iOS application explore how incumbents can become leaders and ultimately win through digital. It provides a guide for incumbents preparing to embark upon digital transformation journeys, while highlighting the dangers that loom for organizations that fail to take action.
 

Are you a digital leader or laggard?

Take the digital assessment.

Behind

On Track Today

Future State Ready

Clarity of Vision

  • Do you know which disruption patterns apply to you?
  • Do you have a roadmap?
  • Is the organization brought in?

Behind

On Track Today

Future State Ready

Fast follower strategy -
wait and see approach

Disruption anticipated action plan and measures in place

Digitize What You Have

  • Do your processess start from data?
  • Are your processes simple, immediate, and end-to-end?
  • Is manual intervention an exception?

Behind

On Track Today

Future State Ready

Focus on automation and lean reengineering

Processess upside down; once and done; instant activation

Decouple Old & New Technology

  • Do you explicitly invest in a mid-tier?
  • Are >60% of your eligible projects executed agile style?
  • Have you separated "legacy" and "new" IT teams?

Behind

On Track Today

Future State Ready

Core system complexity consumes >30% of project budget and time-to-market

Effective mid-tier; agile a common practice

Put Analytics on the Front Lines

  • Do you have a set of focused analytics efforts in place?
  • Are you ready for the paradigm shift of analytics?
  • Are you implementing flexible, distributed data infrastructure?

Behind

On Track Today

Future State Ready

Fragmented, incomplete data; simple analytics a project

Behavioral & predictive analytics; >100 scientists

Free the
digital team

  • Do you have a separate digital unit?
  • Are you able to attract digital talent?
  • Has agile execution conquered legacy mindsets?

Behind

On Track Today

Future State Ready

Digital in legacy IT and business; waterfall

Digital distinct; high talent inflow; agile

Innovate without borders

  • Have you clearly defined your innovation agenda?
  • Do you have a network of strategic innovation partners?
  • Have you focused and funded innovation through labs?

Behind

On Track Today

Future State Ready

No clear agenda; internally focused; underfunded

Innovation agenda, ecosystem and funding as BAU

Enable new digital businesses

  • Is a digital business competing with your current one?
  • Are >40% of sales through digital channels?
  • Have you migrated along profit pools through digital?

Behind

On Track Today

Future State Ready

Digital as extension to existing business

Digital as active challenger to the legacy business

As the pace of change accelerates, the gap between incumbent leaders and laggards gets wider. Laggards will need to catch up, or digital will fade their existence.

Incumbents in the Digital World


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