How are you affected by the digital transformation?
When we at Cadcraft talk about digital transformation, we usually mean the work a company does to become more effective in the internal and external workflows and processes.
Most of our clients already work with some kind of improvement in digitizing analog interfaces to create competitive advantages. Some companies run several parallell projects and have a clear strategy to be in the forefront of technology to gain market shares. There are, however, many companies that still lack a strategy to face the challenges and take advantage of the new technology.
Companies that dont work actively to secure their business for the future run a higher risque to be ousted by new players on the market, players with more effective processes and more appealing businessmodels. Below you will find a couple of examples of new companies who have taken large market shares from more established companies in their field:
In 2017, UBER and their competitor Lyft had 65% more paid trips through New York than all the traditional taxicompanies combined.
In June 2018, Tesla had about 50% of the total sale of electrical- and hybridcars in Europe and North America.
With 4 million listed dwellings in 190 different countries, AirBnb became bigger than the worlds 5 biggest hotelchains combined in 2017, without owning a single hotelroom.
On May 24 2018, Netflix surpassed Disney in stockvalue.
First mover advantage
Keeping track of your own field isnt enough, it is very likely that the next big competitor comes from a totally different field. What the four companies mentioned above have in common is that they offered the customers a more appealing and transparent businessmodel than the big established companies that they now have surpassed.
There is a great difference between being a ”first mover” or someone who is forced to react to a change in market.
Where to start?
Our experience tells us that the greatest potential for improvement is in the interface between the companies stakeholders and out towards customers. An open interdisciplinarity discussion usually results in a number of potential improvementareas. These are then prioritized based on capacity and potential. The single most important factor is that management is driving the dialog so that there is mandate to make the necessary efforts.