Home > trends > For growth, start with a digital focus on customers

For growth, start with a digital focus on customers

MIT has a new report that that has two interesting data points. First, it suggests that companies that focus on digitizing customer facing operations experience higher growth (~100% higher). Second, companies across all industries (on the average) have a higher degree of digitization in their shared services (e.g. financial reporting/processes, HR processes) than in customer facing processes (see chart).

Digitization across industries

Figure 1: Twelve Core Business Processes—Partially Digitized, from S. Woerner, M. McDonald, and P. Weill, “Customer-facing Digitization Creates the Most Value,” MIT Sloan CISR Research Briefing, Vol. XII, No. 8, August 2012.

 

Seems like most need a shift in focus. Nice thing to keep in mind when developing a digital strategy.

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  1. September 24, 2012 at 1:33 pm

    Hello, Akash-
    We are pleased you found our August research briefing valuable. Would you mind including a citation with your use of the figure? The correct citation would be: “Figure 1: Twelve Core Business Processes—Partially Digitized, from S. Woerner, M. McDonald, and P. Weill, “Customer-facing Digitization Creates the Most Value,” MIT Sloan CISR Research Briefing, Vol. XII, No. 8, August 2012.”
    Thank you! Please let me know if you have questions.
    Cheryl Miller-Daniels, CISR Coordinator
    MIT Center for Information Systems Research (CISR)
    P.S. Feel free to remove my comment after you add the citation.

  2. Lars Skari
    October 1, 2012 at 6:16 am

    Interesting graphic – with some powerful implications, Akash. Hope all is well!

  3. November 19, 2012 at 5:12 am

    Excellent Graph – very insightful. The big opportunity is in customer interfacing and in industries such as Agriculture and Manufacturing, Insurance, Healthcare, transportation (logistics) and Retail – Exactly true for India. That has been our experience as well. These are the industry segments which are seeing focus and rapid growth in India abd if they focus their IT budget in these areas they have an excellent opportunity – so their IT portfolio management – Customer interfacing should be the focus even if they are startups – huge gains. The back end systems then can be fine tuned to this.

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