Without any doubt Digital Transformation has become a dominant part of our daily lives. Today, more data is collected and stored in every single hour than the total amount of data which was available in the early 1990’s. The behaviour of both individuals and business has changed radically. And since Digital Transformation is everywhere, everybody has to say something about it, especially with regard to its impact on businesses.
But let’s start with my mother. If you ask her what Digital Transformation is all about, she will answer that letters are no longer written with typewriters. Instead, everything is done with computers nowadays. And who could say she is wrong?
If you ask businesses the same question, quite a few will answer that Digital Transformation is about selling online, having a Facebook and Twitter presence, and being cool and innovative. And if you try hard, you might even find someone who still tells you that Digital Transformation is not relevant for their businesses.
If you happen to talk to consulting firms instead, it might be advisable not even to mention Digital Transformation if you prefer to avoid heavy bullshit bingo from “holistic digital transformation strategies” through “the need for soft skills and error culture” to “the importance of breaking-up existing processes”.
The real impact of Digital Transformation
But what is the real impact of Digital Transformation on recognised analytic models like Porter’s five forces, his generic strategies or other analytic frameworks? Can these still be applied, do they need to be adopted or are new models needed to analyse the level of competition within an industry or to define business strategies?
Has Digital Transformation changed the forces? Are there new forces like Disruption, Customer Access, Speed of Change and Market Share? How do these forces influence competitiveness and business strategy? What is the role of pricing strategy and monetization in the age of Digital Transformation? Do we need new differentiating strategies and new valuation models?
Digital Transformation and State Lotteries
Together with Yanis Varoufakis, economist and former Greek Minister of Finance, at Lotnext Summit in Barcelona (http://summit.lotnext.com) I will discuss the impact of Digital Transformation on the competitiveness and business strategies of State Lotteries, with the objective of understanding where State Lotteries will stand in 2025.