There’s no question that the rise of digital technology poses threats to the paper and packaging industries. Demand for paper has fallen as business and transactions move online, particularly in more developed markets where Bain estimates that consumption may decline by 3% to 5% per year. Contracts, invoices and everyday communication flow without paper, and consumers are switching from print magazines and newspapers to online and mobile versions. There is, however, another side of the digital story in paper and packaging, one that creates opportunities for cost savings and product innovations with new revenue streams. As in other industries, leading paper and packaging companies are showing how to harness this new potential to gain competitive advantage, particularly in three areas. Read the brief on Bain.com
As companies turn to M&A to help them deal with the mounting pressures of digital disruption, they’re discovering the many daunting ways that digital M&A is a different beast than traditional M&A. Among the causes for concern: the forward-looking approach to due diligence and the ﬁnancing methods and valuation multiples required for digital assets, not to mention the questions regarding how to integrate them without destroying what the acquirers just bought. Read the brief on Bain.com
It’s easy to see why so many view companies like Uber, Amazon and Google as the business models of the future. They’ve redeﬁned their industries. They’ve rewired the customer experience. They’re not afraid to fail fast, learn from mistakes and make the changes necessary to stay well ahead of the market. None of this is news to leaders of industrial and other business-to-business (B2B) companies. But these executives also know full well that what works in the consumer realm doesn’t always translate in a B2B context. Failing fast? That’s problematic in industries such as chemical processing or offshore drilling, where the smallest mistake can trigger epic disaster. Moving quickly? We’ll get back to you when our channel partners get back to us. Redeﬁning the industry? [...]
What are the major drivers transforming the digital economy and how should leaders prepare for this new context? Orit Gadiesh, chairman, Bain & Company, moderated a panel discussion at the annual meeting of the World Economic Forum featuring SAP CEO Bill McDermott, Lloyd's CEO Inga Beale, GE Power CEO Steve Bolze and Neusoft Chairman Liu Jiren to discuss this critical business issue.
Products and customer episodes are the core of a simple and digital transformation. Karsten Fruechtl, a partner with Bain's Customer Strategy & Marketing practice, discusses how applying simple and digital principles can help companies meet consumers' expectations in a digital world.
This article originally appeared on HBR.org. Given the pace at which digital innovation is disrupting industries globally, it’s not surprising that most CEOs feel pressure to find and deploy the right technology as fast as their budgets will allow. Many are discovering, however, that becoming a digital leader isn’t simply a matter of technological savvy. It’s about creating an agile organization that can detect what type of change is essential and respond quickly with the most competitive solution. In our experience, most companies are already steeped in technology and learning fast about how it can transform their businesses. Typically, teams in the field are well aware of the digital threats and opportunities within their area of the organization – usually more so than the corporate [...]
Many large, traditional companies view digital innovation in a particular way. They assume the explosive growth of native digital competitors can be largely explained by breakthrough discoveries or technological wonders. True innovation, they assume, is the realm of digital wonks and ambitious entrepreneurs. The corollary, of course, is we don't know how to do that. But as my colleagues and I wrote in a recent Bain Brief on leading a digital transition, becoming a digital leader is as much about strong, bold management as it is about technological savvy—maybe more. At a time when the pace of innovation is dramatically compressing cycle times, what’s most critical is to create an organization that can read weak signals coming from the marketplace and align itself to respond [...]
Many companies struggle with a digital transition because they build on existing complexity. Frédéric Debruyne, a partner with Bain's Customer Strategy & Marketing practice, describes three core elements that companies could focus on to make their processes simple and digital while keeping the customer in mind.
Creating a digital future begins with understanding how customers experience your company. Jeff Melton, a partner with Bain's Customer Strategy & Marketing practice, discusses the importance of designing lean, reliable digital systems that enable customers to get what they need the first time, every time.
Given the pace at which digital innovation is disrupting industries globally, it’s not surprising that most management teams feel pressure to find and deploy the right technology as fast as their budgets will allow. Many are discovering, however, that becoming a digital leader isn’t simply a matter of technological savvy. A common misconception is that if your address isn’t in Silicon Valley, your company is somehow disadvantaged when it comes to capitalizing on digital innovation. But in our experience, most companies are already steeped in technology and learning fast about how it can transform their businesses. Typically, teams in the field are well aware of the digital threats and opportunities within their area of the organization—usually more so than the corporate center. They have launched [...]