The disruption heralded by the digital revolution is a large and growing concern for many industries, companies, and CEOs. Half of established companies believe they will lose 20 percent of their business to start-ups and 40 percent of companies face the risk of being displaced by younger, more agile competitors with different business models within five years.
However, innovation processes and models in established companies fail 70 to 90 percent of the time and only one in five deliver competitive advantage. We repeatedly see the same issues: difficulty in engaging the entire company in innovation, duplication and fragmentation of efforts, gaps in digital skills and capabilities, over-cautious project approvals, projects that should have been stopped a long time ago, internal processes that hinder rather than support, and anxiety about how best to engage with digital natives.
While smaller, entrepreneurial business often have the agility to out-innovate established players, there are examples of established organizations that have successfully transformed for the digital world, learning to both experiment like a start-up and deploy at scale. Companies need to learn from these leaders in digital innovation and embed these new approaches in their operating models.
A.T. Kearney's Digital Business Experience (DBX) Sets Companies Up for Rapid Innovation
With a strategic emphasis on experience, experimentation, and execution, the DBX is comprised of an ecosystem of external partnerships, a proven digital innovation process, and a network of experiential environments in which clients, our digital experts, and external partners co-create digital solutions.
DBX can be experienced in three different ways depending on digital maturity.
- For those starting on the digital journey, we help clients to experience their digital future in an immersive environment.
- For those launching their early digital projects, we help set design experiments and deliver digital solutions.
- For those who have been experimenting for some time, A.T. Kearney uses our partnership with SenseiLabs to provide a scalable and integrated digital innovation solution and transformation approach that enables the entire organization to innovate and collaborate in a consistent way.
A.T. Kearney's Digital Business Experience helps companies to quickly assume a leading postion in executing digital innovation and dramatically accelerate the timeline from idea to execution. We co-create and innovate with our clients and an extensive ecosystem of partners on a virtual experimentation platform. Unlike traditional lab-constructs, which focus mainly on prototyping, we actually deliver—not just test—in record timeframes.
Mobile app drives sales at branded auto parts manufacturer
Together with our ecosystem of delivery partners, we developed a mobile app for mechanics, who decide whether to use branded or private label spare parts at the POS. The app increased awareness for our client’s branded auto parts, and converted mechanics into advocates for their brand. The app was launched in under six months, was down-loaded 40,000 times, and is on track to generate sales of $100m. We also simplified the purchasing process for B2B customers, and can now provide them with an omnichannel experience.
Truck manufacturer on journey to become digital leader
We defined 15 digital initiatives with our client to address their failing core business, and designed a new business prototype in less than four weeks by leveraging SMEs, freelancers, developers and open source technology. The initiatives redefine and extend the manufacturer’s role to become a digital service provider, and introduce partnerships and acquisitions as new delivery models.
Digital technology improves customer experience at auto parts retailer
In an environment where non-traditional auto parts retailers permanently raise the bar, and traditional competitors have started to adapt their stores, we designed a new customer engagement pathway for our client. The new pathway leverages digital technologies, and includes B2B2C, integrated on-line and digital commerce, 360 customer view, geo-fencing and frictionless commerce, as well as a supporting app, that was developed with a 3rd party.
Global pharmaceutical company builds capability in innovate at digital speed
The Pharmaceutical industry has lagged many other industries in the use of digital technologies. A global pharmaceutical company committed to become a digital leader within its industry, and asked A.T. Kearney to help transform its use of digital technologies. One key aspect of the program was to set up a global “Experiment Office” which would enable large scale digital experimentation using a common innovation process and digital academy enabled through a collaborative technology platform.