Digital disruption is here to stay – and the implications it has for every business currently in operation cannot be ignored. The past five years have seen digital cease to be a trend and become one of the basics of survival.
If you are a CIO whose company isn’t embracing it, then you are killing that company. And it’s only a matter of time until they single you out. There’s still time to turn things around, but not very much. You need to take action now. And here are 5 reasons why.
- Most of us are among the disrupted rather than the disruptors – Only 7% of companies surveyed by Gartner in 2014 felt they were truly digital and of the remainder, only 83% felt they would be digital by 2017.
- Huge opportunity or existential threat – the choice is yours. Digital disruption means companies can no longer be complacent. They can either seize the opportunity – like game-changers Netflix or Instagram – or see their business disappear – like Kodak or Blockbuster.
- Speed is the key to survival – What all digital businesses have in common is that they can rapidly turn new technology into growth opportunities and react quickly to emergent threats. Take for example Google versus the advertising industry, Amazon versus retail, Uber versus licensed taxis and so on.
- Your employees are way ahead of you – As empowered users and even entire lines of business fail to get what they need from IT quickly enough, they are acquiring solutions elsewhere, bypassing IT altogether and leading to Shadow IT. In fact, according to Gartner, Shadow IT is set to grow to 50% by 2017
- IT budgets aren’t increasing fast enough to keep up – The main reason behind this is waste. In the US, around 34% of software goes unused – up to $259 per employee, which adds up to a combined total of $30 billion. If that waste were being reclaimed, companies would be able to invest more in innovation.
Want to learn more about how digital disruption affects you? Watch 1E’s COO Nick Milne-Home discussing exactly what you need to know.