Insight into digital business is critical as Gartner now says digital business incompetence will cause 25 percent of businesses to lose competitive ranking by 2017.
The fear is seen among CEOs and CIOs. This concern is justified, according to Gartner, because digital business will concentrate almost exclusively on new sources of revenue derived from new products, services, channels and information for new customers and constituencies.
Digital business expertise will spread around businesses within two or three years, according to Gartner. Other indicators also suggest that digital business represents not an extension of the past, but rather, a different trajectory.
Revenue ambitions will go unmet if CIOs and senior executives ignore the cultural and organizational challenges that accompany digital business.
In a new survey conducted by Gartner, 90 percent of respondents felt that competition for talent will make or break digital business success.
According to Diane Morello, managing vice president at Gartner, the impact of digital business will be undeniable: it will introduce new business models, cause industries to be ‘digitally remastered’ and change the way that businesses put great minds to work.
A digital business strategy creates value and revenue from digital assets. It goes beyond process automation to transform processes, business models and customer experience by exploiting the pervasive digital connections between systems, people, places and things.
Gartner concludes that the world of digital business does more than pose challenges for CIOs and other executives. It opens opportunities to use digital technology to reach beyond organizational boundaries, to assemble problem-solving expertise from around the world, to weave a fabric of knowledge and expertise across communities of practice, and to understand and exploit new models of work.