‘WHAT IF TOMORROW’… DIGITALIZATION COMPLETELY TRANSFORMED BUSINESS MODELS

2017 is a significant year for ISG as the school marks its half-century existence since it was founded in 1967. 50 alumni share their thoughts on what they envision towards creating a better future that is to come in a book ‘And if tomorrow’ that we have dedicated to our 50th anniversary.

This month, discover Alain Crozier CEO of Microsoft Greater China)

DIGITAL TRANSFORMATION
The digital transformation of businesses is already taking place and impacts four main areas: the customization of the customer experience
(more fluid relationships, developing new ways of interacting); increased involvement of employees (breaking down of barriers, information sharing, collaboration…); operational excellence (thanks to tools that make it possible to do things better, cheaper and faster) and the transformation of the business model. The core business of companies will also change. They will offer more and more services to their customers, including in heavy industries. They will continue to deliver physical products, but their business model will evolve, towards offering the services that will come with these products. For example: in the future, a transport carrier will not buy more tires, but a certain number of consumable kilometers.
This service could even include the analysis of drivers using integrated sensors in the tires and the use of Big Data. The billing could be calculated through the quality of the driver, which directly impacts tire wear and good driving would bring down costs. Taking this further, the tire could provide information for insurers and generate other insurance services.

NEW MODELS
This example demonstrates how business models will evolve and change the relationship between suppliers, businesses and customers.
Some newly created companies, or companies forced to react to new types of competition, are ahead of the game thanks to a business model
that relies heavily on digitalization. In e-commerce, for example, while Amazon manages its own stock, Alibaba leaves this task to its suppliers.
Among these two companies fully committed to digitalization, one proposes a model that goes even further, until the day a new company will propose a third model that will revolutionize the sector.

Other companies, the more ‘‘traditional’’ industries, such as eyeglass lens and lens manufacturers, are very advanced at letting customers order from home through dedicated mobile applications and 3D printers. In banking, we are completely rethinking customer relationships through branches and welcome centers that use artificial intelligence to better know customers and customize services to better mee the needs of customers. Every industry without
exception, even the heaviest ones, will undergo an evolution and a digital transformation.

AN IRREVERSIBLE REVOLUTION IN PROGRESS

Transformation, change and the unknown are often scary, but that does not mean that there will be fewer jobs. Roles, current professions and corporate culture will greatly evolve. Many career paths will emerge that don’t exist yet or that we can only guess at.
We are facing a revolution that accelerates competition, shortens cycles and requires more flexibility and agility in all aspects. It is a ‘‘reinvention’’ of the companies that we currently know. We have to move hand in hand with this change by changing the education system and vocational training and by protecting us from potential pitfalls in terms of safety and privacy… Another source of new professions yet to be invented, a new kind of virtuous circle.

Posté le: 18-12-2017