Digitalization has been a mainstream concept for some time. It has been implemented in many different industries to varying extents and the impact of digitalization, even in its more limited applications, has been momentous in changing the way organizations work, produce and deliver. However, this is only one side of the story. On the other hand, the technology, approaches and methods used in digitalization have quickly become commoditized, as following a rational approach has no copyright protection.
Commoditization is a positive thing as it implies that the underlying approach and technology are both accepted by the industry. Additionally, different players can work on adapting and implementing digitalization methods concurrently. However, commoditization also limits digitalization’s competitive advantage since many other players apply the same or similar techniques with different impact levels. In other words, it is affected by the inflation caused by its many applications in different companies. Despite these downsides, investment in this area remains imperative so as not to risk falling behind the competition.
As such, what is the solution? Should we accept the fact that digitalization’s value will diminish no matter what or is there a way to find a different model? The answer lies in re-inventing the concept and its applications.
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