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How to use digital technology to improve the value of your business


Most of the talk regarding the potential of digital technology for business has been centred around online sales, social networking and mobile applications. However, writing for McKinsey Insights & Publications, Tunde Olanrewaju and Paul Willmott insist that the biggest impact on the bottom line could come from cost savings and changes beyond the interface with customers.

Having conducted a year-long study, the authors reveal that across the industries they examined, the potential bottom-line impact from digital sales over the next five years averages at 20%, compared with 36% from cost reductions.

In order to capture the available value, organisations need to assess the value at stake, invest a suitable proportion of that value and align their business and operating models appropriately.

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Source Article: Finding Your Digital Sweet Spot
Author(s): Tunde Olanrewaju and Paul Willmott