Nearly all executives have acknowledged the relevance of digitization and related trends, such as the Internet of Things, connectivity, and industry 4.0. However, the full impact of digitization has usually not been understood in detail. Moreover, most firms struggle to implement digitization initiatives successfully. Therefore, ILI CONSULTING AG conducted the ‘Digital Innovation Compass 2016’ study, built on three complementary pillars: over 100 interviews of experts, project expertise from more than 150 innovation projects and 57 digitization projects by ILI CONSULTING AG, and extensive desk research.
The study substantially advances the insights from previous studies on two dimensions. First, it provides specific action items for managing digitization rather than merely trying to understand the general phenomenon. Second, it considers the need for innovation in order to capture growth opportunities, rather than merely taking into account potential efficiency gains from industry 4.0. In this regard, the findings of the study underscore the importance of innovation for the success of digitization. Starting a digitization initiative is an important initial step, but focusing purely on efficiency drastically limits the potential benefits. The innovation dimension is neglected too often.
How ready are German enterprises for digital transformation? How are German enterprises reacting to digital transformation?