How realistic is a loss of 761 billion due to slow introduction of digitization?
The disruption between expectations in 2018 and reality in 2016
Late adopters of the digital economy will leave a 761 billion revenue growth in 2018, according to a recent survey of European executives. The results say that digital drives revenue and that the most digital proactive organizations, are most likely to achieve an average of 8.4% increased turnover. But how realistic is this? Panic strikes? Change the direction completely or just start certain processes?
Europe is under pressure. Sandwiched between a technology-driven US economy and a rapidly growing China, which expands its research and development capabilities at high speed, Europe urgently needs a plan. The impact of new technologies in all aspects of business and society – what we now call digital – is so great that the region could profit economic in the coming decades.
But new technologies follow each other in rapid succession. Virtual reality, drones, 3-D printing, block chain, never our technological future was so close. And these technologies create entirely new business models, revenue streams, types of customer relationships, business processes and cost structures radically change work.
Digitization can provide both savings and revenue growth. For example, by intelligent process automation (IPA) to be used for routine tasks -like digital mailroom- can save costs companies in the middle and back office.
With the use of digital tools and technologies, Dutch companies would within two years achieve an increase in revenues of 23.5 billion euros. All 800 surveyed European companies together will constitute 545 billion more than in 2015.
According to research from Cognizent in collaboration with Roubini Global Economics. The research ‘The Work Ahead – Europe’s Digital Imperative’ is part of a global study in which the changing nature of work is examined in the digital age.
European executives indicate that technologies such as Artificial Intelligence (AI), Big Data and block chain can be a source of new business models, revenue streams, increasing customer relationships and lower costs. Indeed, respondents expect that digital technologies will have a positive effect on average 8.4 percent on revenue between now and 2018.
How realistic is this view? The differences by country are in fact enormous. Where cloud solutions in the UK are common sense, the much more traditional Germany hesitates. Security plays a role in the consideration, which in the UK is the lack of talent is the inhibiting factor.
Already more then 2 decades Sphereon is engaged in digitization software. Our document processing software, in the cloud and API-driven, is state-of-the-art and leading. Take the block chain api that we as the world’s first have added as functionality.
End of Year Recital
As a software producer we know what is possible and we see plenty more opportunities. Indeed, the speed with which developments follow each other makes us uneasy. At the same time we know from our daily practice the end user is the weakest link. The digital transformation is underway, but as long as still very healthy companies operate with Windows 95 and stacks of documents still to be processed by hand, the billions of revenue growth is far from realistic.
Having said that, the time for action is now. It’s never too late to do something.