Since 2000, over 50 percent of Fortune 500 companies have been acquired, merged or declared bankruptcy. Any company that cannot or will not transform itself into a digital enterprise faces an existential threat to its existence. To compete as a digital enterprise requires starting at the top with the CEO and Board agreeing on the right digital strategy for the company and a game plan to implement it.

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While many companies are investing in online and other digital tools, most have not developed a comprehensive omnichannel strategy to deliver great customer experiences over multiple customer touch points. Legacy marketing mindsets, just like legacy IT mindsets undermine the ability of companies to explore and experiment with all whole new range of digitally enabled customer engagement tools.

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Increasing the market value and operating performance of your company in the new digital world requires that you harness data analytics as a major contributor to your competitive success.

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In order to compete in the age of digital disruption, companies must find ways to create exponential changes in speed to market and time to value. To achieve these changes, many companies have replaced a “permission based” product development process with a “show the customer what’s possible” approach.

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“The real issue is that every business is now a tech business – whether it wants to be or not – and that means not just new skills and experiences, but a new outlook on opportunity and strategy.” This quote is from a recent Forbes analysis of the different business models companies can deploy and how each one is performing in the new digital world.

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Over the past two years, I observed a very distinct pattern between companies that successfully navigate the new digital world and those that fall behind. As it turns out, those who are emerging as the early leaders in the age of digital disruption share one thing in common – a clear statement of intent. This blog includes examples that have helped shape my thinking on this issue.

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Last July, I suggested that well-established companies could no longer sustain competitive advantage through using their size and market reach as barriers to entry. The unprecedented assault of new waves of digital disruption have enabled companies of any size to penetrate some portion of well-established companies’ value chains. Taken together these disruptions are making what was scarce and expensive now ubiquitous and cheap as the chart below illustrates. Simply put, companies must now find totally new ways to compete or risk a major wipeout.

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Less than 30% of companies have a process in place to measure the return on investment of their emerging technology projects according to a recent survey of 150 CIOs and CTOs. Too many companies still measure the performance and business value they get from IT based on the old work of IT rather than the new work of IT.

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In Jim Collins’ seminal book, Good to Great, he makes a very compelling case that getting the right people in the right seats on the bus is more important than your business growth strategy. While that may seem counterintuitive, in the new digital world I think it makes perfect sense.

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Inquiry Response: Investing in Exploratory Analytics

By Peter Moore, Mar 30, 2017

Available to Research & Advisory Network Clients Only

Inquiry:

What are ways we can reallocate resources to invest and focus on exploratory analytics, in addition to the necessary day-to-day analytics activities?

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