FACTOR10 @ World Economic Forum 2017
From the 17 – 20th January 2017, it was that time of the year again. In the context of the World Economic Forum’s Annual Meeting in Davos-Klosters (Switzerland), top global leaders gathered in the beginning of the year to discuss and tackle the most significant regional, global and economic agendas.
Digital Transformation: The 4th industrial revolution
Aside from important traditional trends such as demographic shifts and political transformation, the focus of the discussion moved towards the importance of break-through technologies and their future economical, political and societal implications. Top leaders from politics and economics are now to actively manage these implications.
FACTOR10 – Part of WEF’s network of digital leaders
To manage these challenges, the WEF has established a network of European digital leaders – experts from the digital field that design start-up ecosystems with the goal to develop their region to a digital innovation hub. The European regional hubs are ought to be in an intensive exchange, work together to master new challenges and motivate each other. Together with leaders from politics, venture capital and industry, these hubs are forming the economic future. FACTOR10 is proud to be already be part of these experts and was represented at the WEF by its founding partner Felix Stäritz.
The following excerpts offer a brief insight into the many exciting topics that were discussed as part of the World Economic Forum:
Digital Enterprise – the company philosophy of the future
To stay competitive in a digital era, firms must reconsider key aspects of their business:
- Digital business models: Identification, development and launch of new business models. By 2020, new business models will account for 30% of value added.
- Digital operating models: Successful digital companies follow a specific and pragmatic access to both their core and support functions. The operations division will be most affected by the digitalisation
- Digital competence: Firms must tackle the challenge to acquire digital knowledge. This will require a modernisation of the human resources department, firm culture and other internal processes. Likewise, the automation and use of machines will gain of importance.
- Digital metrics: Traditional KPI’s are not sufficient to assess the performance of digital companies. Firms must identify metrics that have meaning and are able to respond in real time. If the digital transformation is successful in these areas, firms will draw 26% more profits than others.
Ways to Digital Enterprise – How companies can establish digital business models
BUILD: When the new model is similar to the core business, the market provides enough time to act and the necessary talent can be acquired.
BUY: When the step towards digital business models is indispensable to dominate the market, the critical moment in the market leaves no more time to develop in-house, the necessary talent cannot be acquired and the business opportunity has to do little with the core business.
PARTNER: When there is no compelling strategic necessity to own the new technologies and potential for future cooperation
INVEST: Enables established companies to acquire the necessary skills and technologies without having to change the own company. At the same time, start-ups or entrepreneurs do not lose their flexibility or rather their independence from internal processes.
INCUBATE / ACCELERATE: Enables the emerging division financial security and infrastructure whilst the established companies can benefit from the new ideas and models.
The global importance of digitalisation was emphasised with the variety of topics at the WEF in Davos. FACTOR10 greatly acknowledges its mission to develop Europe into an innovation hub that is sustainably competitive. With a network of digital advisors and experiences entrepreneurs, takes co-accountability in digital transformation and jointly prepares its partners for the challenges ahead.