Will Your Company Be Around Next Year?
- July 19, 2017
Asking such a question may seem provocative but it reflects the reality of what’s happening on the ground. Did you know that about half of the companies listed on the Fortune 500 in the year 2000 have subsequently fallen off the list [i] (and many of those no longer exist)? Just think about how iconic brands like Blockbuster, Eastman Kodak, and Borders have quietly vanished while newcomers like Facebook, Uber and Airbnb have burst onto the market with brand new business models.
Of course, some long-established companies like John Deere have also embraced digital transformation with the company deciding it could no longer differentiate itself by having the biggest, fastest tractors. Instead, it adopted a strategy of providing the smartest, most productive equipment to farmers. Deere’s new value proposition is all about process optimization – reduced costs, increased yield and increased sustainability through data-centric technologies and improved information flow.
Looking ahead, IDC predicts that 33% of industry leaders will be disrupted by digital transformation before the end of 2018.[ii] The good news is that you can take action now to position your company for the future! In fact, according to a MIT Sloan Management review report[iii], companies that successfully manage their own digital transformation not only avoid disruption, but are 26% more profitable than their industry peers.
Sure, change is challenging but change also brings huge opportunity and none of us can afford to become complacent. We all need to be actively exploring how technology can transform our industries and give us a competitive edge. It really is the survival of the fittest. The challenge is that according to an Accenture study[iv], only 30% of executives are very satisfied with their ability to convert ideas into market-ready products or services. This is where smart partnerships can add value and help you get your products to market faster.
For example, our Dell EMC OEM team partners with organizations – from start-up companies to established global leaders – to help bring their intellectual property and solutions powered by that IP to market. Think of it as a smart division of labor, a partnership where we both focus on our core expertise – you on your company and generating new ideas while we help co-design a customized solution for your business needs, modify the appropriate Dell EMC technologies to optimally run your solution, certify it to industry standards or regulatory requirements, and build and deliver it with the reassurance of our award-winning global support. It’s all about making your digital transformation journey easier.
At our recent annual showcase event, Dell EMC World, we launched a slew of innovative products, designed to enable companies on their transformation journey. While there was lots of amazing technology on display that wowed the attendees, the thing that still struck me most was “people power” – the human capacity to create, invent, innovate, make better. And this people power is exponential when we combine our customers’ knowledge of their markets and solutions, with our technology and supply chain expertise.
We work with a huge range of OEM customers who are doing incredible things with positive impacts not just economically, but also socially. I had the pleasure of meeting many of our customers during the show and they truly are an inspirational group – they combine their IP with our technology to help launch rockets, treat cancer, measure and improve crop growth, help reduce power consumption and keep food fresh in transit before it hits the supermarket fridge. You name the incredible mission – we have a customer that’s making it a reality!
And so, I was thrilled to see VDC recognize that partnership recently when it announced that Dell EMC OEM is now the number one worldwide OEM provider[v]. Our customers made this happen and we’re hugely grateful for their support over the years. Thank you! I promise that we won’t become complacent but will continue to work hard, every day to retain your trust.
Going back to the first question posed, only you can decide if it will be digital disruption or opportunity for your business but if you’re looking for ways to innovate and achieve the unique mission of your industry, we’re here to help! I’d love to hear your questions and comments.
[v] OEM Global Share based on 2016 Dollar Volume Shipments, VDC Research