“Harnessing the potential of digital innovations is one of the greatest management challenges of our time. Discovering new digital ways to improve a business requires not only staying on top of developments within the same industry, but also in other industries and geographies,” said Paul Beswick, Global Co-Head of Oliver Wyman’s Digital Practice.
“Our Ten Digital Ideas Report shows which companies are getting digital right and how,” added Christoph Knoess, Global Co-Head of Oliver Wyman’s Digital Practice.
In conjunction with the report, Oliver Wyman released the following 2017 digital predictions:
- Financial Services: One trillion dollars of revenues and costs are up for grabs in modularizing financial services. Additionally, banks can save as much as $150 billion that they spend on IT/operations for capital markets by implementing blockchain innovations.
- Sharing Economy: The world’s sharing economy will expand nearly 12 times, to reach $300 billion by 2025 as more businesses – both on a retail and wholesale level — take a page from the playbooks of sharing platforms such has Airbnb, Lyft, and Uber.
- Manufacturing/Auto: Manufacturers can improve their margins by $1.4 trillion by digitizing the processes that manage how a new idea is brought to production through sales to delivery and factory maintenance. Digital technologies could enable auto makers to save $100 million per new car launch by integrating design and data more closely with production.
- Logistics: Apps are about to revolutionize freight shipping as much as they have other areas of the transportation industry. Smart trucking apps will provide an all-in-one solution for freight shippers and carriers replacing fragmented and time-consuming legacy processes.
- Healthcare: Up to $530 billion in annual health spending could be eliminated if consumers embrace a digital healthcare model similar to the online retail platforms that they have become accustomed to such as Amazon.
- Big data: The drone market will surge to nearly $7 billion by 2020 globally as drones become a new big source for data analytics.
- Cyber Security: Only a third of companies are sufficiently prepared to prevent a worst case scenario cyber-attack.
- Digital and Emotional Technologies: Digital companies that ignore the importance of emotional connections for consumers risk being viewed as fleeting utilities
according to a survey of 3,500 consumers conducted by Oliver Wyman’s creative consultancy, Lippincott. Functional customer benefits aren’t enough. Emotional bonds matter.
The articles in the Ten Digital Ideas are:
- Move at Clock Speed: Companies Need to Behave like Digital Disruptors
- Beware of Digital Buzz: What it Takes for Complex Innovations like Blockchain to Work
- Share or Shrivel: No Business is Safe from the Sharing Economy
- Become Digitally Lean: German Manufacturing is Leading a Digital Industrial Revolution
- Be Modular: A Lesson for Financial Services
- Prepare for the New Drone Data Wave: Drone-based Big Data will Change the Rules of Competition
- Don’t Just Digitize, Humanize
- Stay Ahead of Smarter Apps: Make Way for Uber-Trucking
- Learn from Online Retailers: Paging Dr. Amazon
- Go to Cyber Extremes: What to do When Digitalization Goes Wrong
About the 10 Digital Ideas:
Ten Digital Ideas is a collection of recent perspectives from across Oliver Wyman on one of the greatest challenges facing executives – harnessing the potential of digital innovations. Ten Digital Ideas explores how leaders in industries ranging across financial services, manufacturing, transportation, healthcare, retail, and logistics are capitalizing on digital innovations.
With offices in 50+ cities across 26 countries, Oliver Wyman is a global leader in management consulting that combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization transformation. Oliver Wyman is a wholly owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].