Ones, zeroes, winners and losers
Everybody knows the buzzwording. Newspapers, consultants and even your neighbor who is a teacher at the local secondary school rave about how society and companies need to digitize. It’s familiar and strange simultaneously. „Digitizing an entire business“ – What’s that even supposed to mean? Ones and zeros and bits and bytes replacing your old friend Michael at the assembly line? Robots taking over? Not so fast.
First of all, many people keep using the wrong term. What most are talking about is the idea of digital transformation rather than digitization. The process of digital transformation brings enormous possibilities and great chances but also do a whole lot of uncertainties come with it. The degree of confusion is alarming. More than half of all internet users say they are afraid of increasing digitalization (55%). But even more people expect big opportunities as a result of the process (80%).
Physical activities and operating machinery in a predictable environment represent one-third of the workers’ overall time in the manufacturing industry. Studies show that roughly two thirds of these predictable activities could already be automated with today’s technology. And the numbers are only going to increase. So don’t sleep on a process that already gained so much momentum that most people lost track.
As technology evolves, digitalization and artificial intelligence will have a constantly increasing impact into fields that right now only seem to have a rather low technical potential for automation. Sectors such as construction will undergo the most serious transformation since the industrial revolution in the late 18th and early 19th century.
There’s going to be winners and losers and the situation calls for gigantic efforts for society in order to not completely outpace the losers but to offer new chances to everybody. So who is going to succeed? As a result of digitalization there will be less manpower required in the manufacturing sector. The service sector on the other hand will benefit.
No matter at which stage of digital transformation your company is currently operating. At FACTOR10 we know how to accelerate the process and to bring your business on a sustainable path of growth. We are digital entrepreneurs and innovators with extensive experience and knowledge in building successful digital businesses. We take co-accountability in digital transformation and jointly prepare our partners for the challenges ahead. We combine the best assets of established companies with the speed, agile processes and mindset of startups to create exponentially growing new digital businesses.
In many occasions, new digital business models can be found and set-up much faster in a separate entity outside of an established company while leveraging its existing assets with a co-creation strategy. Co-Creation is a reliable and promising way to de-risk internal digital business creations. The challenges include patience needed and a portfolio approach as co-creation generates winners and losers. FACTOR10 specializes in doing exactly that.