This is a fairly lengthy and comprehensive report put out by the World Economic Forum, with Accenture, on the coming digital transformation of industries. The work (surveys, etc.) was done in 2015 and the report was published in January 2016, but it is still highly relevant. The report looks at the nature of digital transformation, what it is and what is causing it, as well as make specific recommendations regarding everything from the nature of the new workforce to the necessity to change business models.

In this report, McKinsey identifies five dimension of Digitization that are affecting businesses today:
  1. Digitization of products and services – putting intelligence into the things you offer your customers
  2. Digitization of marketing and distribution – gaining insight into individual customer behaviors, motivations, needs and desires
  3. Digitization of ecosystems – the rise of platforms and their use as the foundation for new offerings
  4. Digitization of business processes – making internal operations more intelligent from manufacturing to legal, HR and R&D
  5. Digitization of supply chains – Increased control, efficiency, security and performance of globally connected, multi-node supply chains.
Currently, about 49% of companies are focusing on digitizing their markets and distribution, 21% on digitizing their products and services, 14% on their business processes, 13% on their ecosystems and only 2% their supply chains. The digitization that is happening in these five areas is putting downward pressure on companies’ revenues and profits, respectively estimated by McKinsey to be on average -12% and -10%.

This article summarizes and highlights the results of four surveys on digital transformation (Forrester, Altimeter, 451 Research, and Adobe).

A large, global company was reconstituting its corporate innovation team after a period of massive and intense reorganization involving all aspects of the business. The key innovation stakeholders were given what was essentially a blank sheet upon which to design and build a corporate innovation system that would drive transformational growth for the next decade and beyond. As is the case with most organization design projects, this blank sheet came with a complex and intricate set of aspirational goals, situational circumstances and contextual constraints that had strong roots in the legacy organization. One of the keys to the ultimate success of corporate innovation is establishing a central innovation group whose mission is to design, build, operate, and evolve the enterprise-wide innovation system.