Increasingly over the last couple of years, I have had more conversations with C-level executives who are asking, “How do I transition and change my business from where it is today, to a digital business?” What is driving this discussion is that businesses are evolving rapidly to a global Digital Economy. In a recent article by The Economist, Where the Digital Economy is Moving the Fas, it is easy to see why the United States is in the center of high levels of digital development. Over the last two decades we have seen massive enterprises formed like eBay, Amazon and Netflix, and it’s been less than a decade since up and comers like Airbnb and Uber have been launched. In short, consumers used to be confined to make purchasing decisions within a particular geography or source until digital businesses leveraged the internet to sell products and services worldwide.
In today’s Digital Economy, customers have more information and more purchasing choices. Therefore, traditional businesses recognize that in order to keep the customers’ interest and loyalty, they must be relevant where their customers are spending their time, searching for information and making buying decisions. Traditional companies are also facing competitive pressures online globally that they may not have had in the past. Enterprises that are transitioning to becoming a digital enterprise are evaluating current revenue streams and how future revenue streams may differ. A classic example is that of Blockbuster, who filed for bankruptcy almost five years ago for a few reasons. First, they did not recognize how their customers wanted to buy, which was a reason Netflix prevailed. Second, they were focused on how to increase (current revenue streams) in-store sales outside of movie rentals. For more than five years now, this customer, along with many others I presume, has been happy ordering movies from home when we want and without feeling like we had to stop at another convenience store on the way home on Friday night.
In our recent whitepaper available for download, The Digital Enterprise: Transforming Business in the Cloud, we discuss other companies that have been successful in the Digital Economy. Companies that are successful will learn more and earn more revenues rather than being displaced by upstarts. If you look at the most recent YOY revenue growth of IBM and Salesforce as examples, you may be shocked to know that Salesforce reported 38% growth while IBM reported -4%. Some traditional companies may be slow to change or resistant all together, while more agile and nimble companies are learning and seeing earnings growth and becoming the enterprise of tomorrow.
In this whitepaper, we have laid out our view of how companies can transition to being a digital business. Cloud transformation isn’t just for emerging companies. The rapidly maturing infrastructure of the public cloud has finally hit the big time for big business. Many large companies have been dabbling in Infrastructure-as-a-Service (IaaS) for years. Now, well-known, major brands are taking the plunge to commit critical parts – if not all – of their IT infrastructure to the public cloud. These pioneers have every reason to be optimistic about what the future holds.
We are happy to help you make this transformation. Contact us to see how we can help.
Jeff Aden, EVP Marketing & Strategic Business Development