Monday, June 6, 2022

Supply Chains are Where Either Digital Transformation or Digitization Could be Seen Early in Most Industries

Digital transformation and digitalization (applying new technology to business models, in the former case; to business processes, in the latter case) are perceived as having the greatest benefits for product creation. 


Applied digital technology seems to be seen as a threat to supply chains and distribution mechanisms. 


That would be in keeping with the general impact of internet technologies generally, which have had an impact of varying degrees in product creation, but arguably the greatest impact in changing distribution costs and roles. 


source: McKinsey 


In other words, it is possible that digital transformation and digitization (changing business models and operating costs) will have the greatest business impact as a way of collapsing the distribution portion of all value chains. “Cutting out the middleman,” or disintermediation, could be the area of greatest immediate change in many industries.

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