Mark J. Barrenechea Mark J. Barrenechea Chief Executive Officer, OpenText
Digital: Disrupt or Die?

Digital: Disrupt or Die?

In this strategic survey of digital disruption, the CEO and Chairman of Enterprise Information Management (EIM) specialists OpenText discuss the future of digital technologies, their impact on enterprise, and the role EIM can play in delivering successful digital change.

History is often written by the winners and in a Digital-First World, there’s a whole slew of them: Google, Amazon®, Apple®, Netflix®, Facebook®, Wikipedia®, Pinterest, YouTube™, GoPro®, T-Mobile®, Yelp— the list goes on and on. Winning organizations have successfully fused imagination with technology to introduce new business models and change the way consumers buy, the way companies market, and the way enterprises operate. There are examples in every industry, as the winners outpace the losers who to fail to reinvent themselves as digital enterprises.

In every sector, digital technologies are changing the rules of business by enabling new business models and leveling the playing field. In the past, technology has been fundamental in helping organizations reduce costs and increase productivity. While this is still the case, digitization is dramatically changing our business landscape with the promise of increased opportunity and innovation.

Most business leaders are aware of the promise of rapid technological change. In 2020, CIOs, CMOs, CEOs, and business managers will be tasked with finding new customers, new markets, and new revenue streams using digital channels. The winners will successfully re-invent their businesses to thrive in a digital economy. In fact, companies that demonstrate digital maturity realize higher financial performance than their competitors. On average, digital leaders are 26 percent more profitable than their industry competitors. They generate 9 percent more revenue through their employees and physical assets. And they create more value, generating 12 percent higher market valuation rates. For large companies, this can equate to billions of dollars.1

Key Disruptive Forces

Digital is coming. It’s a very powerful, fast-moving train, fueled by key disruptors like cloud and mobile, a changing workforce, a digitized supply chain, digital consumers, and requirements to comply with increasing, global regulations.

In 2020, there will be larger, more interactive transactions and higher volume networking. New technologies like social and mobile, and how they are connected—over 5G networks—will change the way people experience the world. Enterprise IT infrastructure will move to the cloud. The Internet of Things (IoT) will automatically integrate machines, data, and people. Emerging technologies like three-dimensional (3-D) printing will radically change manufacturing by moving the entire supply chain online. By 2020, consumers will drive the majority of interactions with suppliers. Buyer-driven platforms will continue to infuse the Digital-First world with dynamic and real-time results, expanding on Just-In-Time (JIT) manufacturing to optimize supply chains and meet customer demand.

Internally, the enterprise of the future will have to support a culture of innovation and build technologies to support a changing, multigenerational workforce. By 2020, more than 50 percent of the workforce will be “digital natives” and will expect to be connected 24/7 and work the way they want to work. Meet “Generation Z,”
made up of a people who have grown up with easy access to and knowledge of the Internet and its applications. This technically savvy generation will expect unlimited access to information and be driven by the immediacy of real-time insight and action. Generation Z presents the greatest generational shift the workplace has ever seen, challenging leaders and managers to radically change the way they attract, retain, and support the workforce.

Finally, new technologies are requiring us to re-platform compliance. In 2020, growing regulatory and competitive pressures will require the enterprise to rethink and reprioritize its security and governance strategies for enterprise information. These requirements will be driven by emerging global regulations, increasing amounts of Internet users and privacy-related issues, big data, and protection against Intellectual Property (IP) loss.

In a Digital-First World, new technologies, digital consumers, a changing workforce, and a global marketplace offers pure opportunity for the enterprise. With opportunity comes risk, and the greatest risk lies in not embracing disruption in an increasingly digital society.

Simplify, Transform, and Accelerate

In order to succeed in 2020, the enterprise must reinvent itself— to simplify, transform, and accelerate its business through automated and digitized information processes. As information is increasingly digitized in many formats, organizations will be required to differentiate their products and services based on a strategy that maximizes the potential of information as a key differentiator. Information leads to greater insights, better business decisions, higher customer satisfaction, greater agility, and optimized business performance. But how can the enterprise unlock the potential of information without compromising productivity and security?

Enterprise Information Management (EIM) is the key transformative technology. It provides a robust foundation for the digital enterprise to advance engagement with employees, customers, partners, and across the entire supply chain. This series of articles entitled “Digital: Disrupt or Die” explores the future of digital technologies, their impact on the enterprise, and how EIM equips the enterprise as it transforms itself into a digital enterprise to brace for change and opportunity in the year 2020 and beyond.

Download the full article here.

1 Capgemini Consulting and the MIT Center for Digital Business, “The Digital Advantage: How digital leaders outperform their peers in every industry”, 2012.
2 Imid.