Digital is penetrating all sectors, but to varying degrees..
Front runner – Mainstream – or – Laggard?
If you are in the media, entertainment or retail businesses and you have not yet embraced digital you may soon find your business lagging behind. However, if you are in consumer packaged goods or automotive and assembly industries you may still have chances to become a digital front runner. A recent McKinsey study among approx. 1,500 companies from 10 different industries shows that: “digital is penetrating all sectors, but to varying degrees”: But why does it matter? McKinsey estimates that “Globally, digital disruption is shaving 45% off incumbent companies’ revenue growth and 35% off their earnings before interest and taxes……digitalization enables new entrants using disruptive model to penetrate existing industries…those digital newcomers own about 17% of revenue worldwide” SMEs seam to be particularly a risk A recent survey by PwC (Denmark) show that SMEs in particular have not yet embraced digital and as many as 40% of small companies don’t expect to invest in digital over the next 3-5 year against 7% for medium sized and only 1% for large corporations.