Business leaders have long used information technology to improve productivity and efficiency, reach new markets and optimize supply chains. What’s new is that customer expectations have also changed. People everywhere are using social networks to find jobs and restaurants, lost friends and new partners—and, as citizens, to achieve common political goals. They are using the internet for entertainment, shopping, socializing, and household management.
Everybody is trying to figure out how to get better at building software applications. We talked about software eating the world, but what it really means is every organization on the planet’s trying to figure out how to build net-new systems of engagement to engage their customers, employees, and their users. That is a different world than the world we’ve come from, where we built our competitive advantages around our supply chain and our distribution.
Companies with a cohesive strategy for integrating digital and physical elements can successfully transform their business models—and set new directions for entire industries. These companies focus on two complementary activities: reshaping customer value propositions, and transforming operating models using digital technologies for greater customer interaction and collaboration.