Enterprises should create an industry vision for digital business success which requires CIOs to re-imagine concept, capabilities, assets and research
Enterprises struggling with digital business transformation can most easily pursue digital business by creating a vision for their own industry, according to Gartner, Inc. According to Gartner’s 2016 CIO Agenda, executives expect that 41 percent of enterprise revenue will come from digital business by 2020, almost double what it was in 2015. Yet, in 2016 many enterprises have not started a digital business transformation.
An industry vision consists of four parts: Concept, Capabilities, Assets and Research. Additional information is available to Gartner clients in the report “Create an Industry Vision for Digital Business.” This report is part of the Gartner Special Report “Industry Visions for Digital Business Set the Terms of Competition,” a collection of research that offers examples of industry visions that will help CEOs and CIOs tilt the fundamentals of competition in their favor and redefine what it means to be an industry.
Additional analysis on the industry vision will be provided during Gartner Symposium/ITxpo 2016, the world’s most important gathering of CIOs and other senior IT executives. IT executives rely on these events to gain insight into how their organizations can use IT to overcome business challenges and improve operational efficiency.
Jorge Lopez, Vice President and Distinguished analyst at Gartner remarked, “Enterprises can transform by exploiting business moments or by using digital capabilities to enter or create new markets as Airbnb and Uber have done.
However, many enterprises will find it easier to start by creating a vision for digital business for their particular industry. This approach enables the enterprise to tilt the fundamentals of competition in its favor without limiting digital business to narrow sequences of events and committing to a vast building project. Once the enterprise has established its vision, it can more easily tackle business moments or leverage its digital capabilities in new markets. Broadly speaking, an industry vision shows what business could look like if enterprises use the IoT and smart machines to their full potential,” explained Lopez. “For asset-intensive industries, digital technologies can automate operations on a large scale — not just individual business processes, but a whole operation end to end. Productivity will leap as smart automation makes better, faster decisions, and produces more at lower cost with fewer assets and fewer stoppages. At the same time, optimized production will usually reduce the enterprise’s environmental impact.”
