Welcome to the June 2016 edition. We thank our readers for the overwhelming response to the May edition featuring “New Digital Revenue Streams”. Thank you for your feedback, insights, views and questions. Based on your request to cover this subject in more depth, we intend to continue to stay focused on this topic for this and a few next editions.
A recent Gartner 2016 CIO Survey, shows that digitalization is intensifying. It is estimated that in the next five years, CIOs expect digital revenues to grow from 16% to 37%. Similarly, public-sector CIOs predict a rise from 42% to 77% in digital processes. For incumbents the stakes continue to rise. The topple rate at which companies lose their leadership positions increased by over 40% between 1965 and 2012. And the loss in leadership is combined with an average of 30% decline in profitability. Strikingly, many of the successful new entrants come from far behind quite unexpectedly.
How can enterprises get closer to their digital revenue plans, what are some of the challenges in this process and how can they be overcome? This edition features an interview on this topic from Mr. R R Belle, Founder MD and ex CEO of SBI General Insurance Co. Ltd. who is now an independent director on the Board of Karnataka Bank Ltd., a major banking institution in India. He was also a member of the team that set up CIBIL, India’s first credit information bureau.
Identification of new digital revenue streams first requires enterprises to have a very comprehensive understanding of their as-is state including where their investments lie (people, physical assets, IP etc.), who the ecosystem players are and what opportunities are available for collaboration within the ecosystem. As simple as it may sound, enterprises still have little consistency and clarity amongst its key stakeholders when asked what this means to them. Different stakeholders have different views on this topic. As a quote goes, simplicity is complicated. Getting this fundamental step right, is crucial to navigating the path of digital. Each enterprise need to design their own digital path. While it is good knowledge to have in terms of what our peers are doing, designing enterprise strategy for digital has to pass the truth test that is right for every individual enterprise in line with their respective ideologies and culture.
I hope you find this edition useful. Please do continue to stay connected. We welcome videos and articles you may want to share on the topic of Digital – please feel free to send them to us. We’d be happy to post it on your behalf.