Countries, industries and companies now pursue digital technology for the benefits and opportunities it brings to their economies and ecosystems. Tech leaders who are embracing Digital-First have the mindset that digital innovation and technology will best meet the changing and growing demands of those they serve.
When the pandemic lockdowns disrupted everyday activities and directly threatened economies, consumers adeptly pivoted to shopping online en masse, moving to ecommerce platforms, straining existing technology and spurring innovation. The digital transformation that was slowly unfolding prior to the pandemic accelerated, not just in retail ecommerce, but across all sectors.
However, the changeover to digital within industry ecosystems is prompting some concern, particularly in the area of value chains, according to International Data Corp’s recent study. Comprised of suppliers, researchers, academia and others, the chains are the means for products and services to reach consumers.
In part because chain members range from a small business or startup through a large corporation, the changeover to digital is more complex. Each adapts to the rising digital economy in their own way and not having sufficient resources is a limiting factor for some.
From its study titled, “IDC FutureScape: Worldwide Future of Industry Ecosystems 2023 Predictions” IDC published a recent article with the list of “The Top 10 Predictions for the Future of Industry Ecosystems”.
The overall study provides a range of insight about industry ecosystems and the changeover to digital technology. Companies are offered different approaches to this challenge. For instance, partnering was identified as having a key role for a company’s own business’ growth and stability. The partner benefits:
- Enable connected parties to find solutions to similar needs and challenges,
- Lead to the sharing of data, insight, applications, operations and expertise for mutual benefit, and
- Facilitate innovation, ensure safety and quality or more closely engage with their customers, consumers, citizens, and patients.
One of IDC’s ten predictions suggests there are potential consequences for not keeping up with this latest tech trend. Companies are given the warning that, “By 2025, 25% of organizations that do not share operations and expertise across their industry ecosystems to address talent shortages will struggle to remain viable or be acquired”.
In order to avoid such result, Chase Conroy, Consultant at leadership advisory firm Heidrick & Struggles, advocates for a change of company culture that must be led by company leadership.
“Companies are using digital tools and automation more than ever. Now, as leaders reimagine and reset their businesses for the future, those who focus on purpose and culture while they seek to make the most of technology will be in the best position to thrive,” says Conroy.
Consumers also have a role in how digital technology advances in some industries. During the pandemic they valued shopping online, curbside pickup and other conveniences. But now they have higher expectations post pandemic, according to a recent ChaseDesign|JGA survey. While companies move to digital for internal efficiencies, they also need to remain competitive—and that requires them to better understand their customers’ needs and offer valuable solutions.
As companies navigate within their industry’s value chains, they are breaking new ground with fellow ecosystem members in their quest to find cost efficient solutions. The IDC study suggests it is advantageous to seek out “flexible ecosystem partners” who show they adaptable to the digital transformation that is ongoing.
Leadership advisory services firm Heidrick and Struggles affirms that partner selection is very important during a company’s changeover to digital, “
Companies are using digital tools and automation more than ever. Now, as leaders reimagine and reset their businesses for the future, those who focus on purpose and culture while they seek to make the most of technology will be in the best position to thrive.
The study describes this new phase of digital transformation as a period when organizations are expanding within their industry’s ecosystems. This is also occurring through connections with partners from outside their core industry that have valuable assets, resources, knowledge and best practices to offer them.
Jeffrey Hojlo, research vice president, Future of Industry Ecosystems sums up the dynamics underway in industry ecosystems.
“The world and each industry landscape are too complex, dynamic, and disruptive for any one organization to address on its own – the pace of innovation makes it difficult for organizations to keep up,” says Hojil. “As such, every organization needs an external source of data, insights, applications, operations, and expertise to complement and grow their business. Expansion, collaboration, and innovation with industry ecosystems has become the next phase of digital transformation for every organization.”
The full report focusing on industry ecosystems and digital transformation is available upon request at https://www.idc.com/events/futurescape
