Taking leadership in a digital economy
Digital transformations facing large corporations are beyond typical planning cycles and most CEO tenures. This makes good timing absolutely critical when it comes to allocating resources effectively.
Leading the economy successfully through fast changing markets requires new business models, great customer relations, competitive intelligence, agility, speed, and talent according to this new report co-authored by Telstra Corporation Ltd and Deloitte tilted Taking Leadership in a Digital Economy.
Key findings within the report include:
- With the increasing expectation of having to deliver more with less - and the fact that digitisation accelerates those pressures - we need to invest in new capabilities not old business models
- Providing customers with rich, real time and easy to use functions can reduce cost and improve service by putting customers more in control of their affairs
- Strengthening these customer relationships and having the foresight to explore community forums, and engagement tools like gamification, as well as collaborative consumption that will begin to differentiate those able to anticipate and be ready for digital disruption and those that aren’t
- It’s not about what you own, but what you do. Deloitte forecasts the direct contribution of the internet to the Australian economy to be $70b in 2016 – growing roughly 7% each year over the next four years
- All too often incumbents forget to look beyond their traditional boundaries and miss the most important competition of all, that of substitutes. In the digital economy, past competitors may also become future partners, and current customers may become future competitors
- Traditional value chains that were held together by physical limitations dissolve and new, networked based competition begins to form
- The report also outlines the danger of the ‘skills drain’. In the digital economy, talent is even more important than in traditional sectors. Employees with experience in digital roles are often tempted by overseas technology hubs, making their retention an important goal
- The report concludes that if Australia’s corporate leaders heed the opportunities of a digital economy and take leadership, then Australia is in for a prosperous future.