Enterprises around the world are preparing to enter the digital age, with over USD 30 trillion in market capitalisation across eight key verticals ready for disruption. The prediction comes from globalisation advisory and management consulting firm Zinnov, which in September launched its study 'Enterprise Digital Transformation-The next era is already here'. The study has identified the market size for digital transformation, areas that demonstrate high potential for digital transformation, and the opportunities for India to take the lead in this space.
The study also indicates that verticals with a high degree of direct consumer connect are likely to witness greatest degree of disruption. These verticals include Retail; Banking, Financial services and Institutions (BFSI); Media & Entertainment (M&E); and Travel & Hospitality.
In order to drive exponential business impact, today’s data-driven enterprises leverage contextual public & internal enterprise data, and employ new-age technologies for generating deep insights that are both predictive and prescriptive. The Zinnov study found that 465 new companies moved out of the Forbes 2000 list between 2011 and 2013 and another 550 companies will move out the list between 2013 and 2015 because of disruption from the digital age. Almost 50 per cent of the companies in the Forbes 2000 list will experience churn from the list because of the impact of the digital era, the study said.
The study highlights six key areas where organisations need to digitally transform themselves range from better targeting & engagement, supply chain optimisation, digital products & services, to workforce & partner enablement, and operational excellence & risk management.
The study reveals that enterprises will need to spend USD 70 billion in 2015 in order to stay competitive against new emerging digital native organisations. This spend is expected to grow at a CAGR of 26 per cent to reach USD 230 billion by 2020. Of this, enterprises in North America are expected to take a lead with a spend of USD 26 billion which is expected to reach USD 73 billion by 2020, propelled by the presence of digital hubs in Bay Area and New York City, and the availability of a more mature digital ecosystem.
India, with a strong technology ecosystem of MNC R&D centres, service providers, IT global in-house centres, and startups is well placed to play key role in the digital era. Indian talent can potentially power the digital transformation for enterprises around the world. The study estimates that India is home to digitally ready talent pool of 500,000 engineers suitable to execute digital transformation projects. This is expected to increase to around a million engineers in 2020.
Pari Natarajan, Co-founder and CEO, Zinnov Management Consulting, said, “We recommend four steps for all traditional enterprises that are undertaking the digital transformation journey; building EDT knowledge base and understand possibilities, assessing business and digital priorities, establishing a step-by-step methodology for digital readiness and finally implementing digital solutions incrementally and iteratively.”
