Professional Documents
Culture Documents
BCG The Double Game of Digital Strategy Oct 2015 - tcm80 199053 PDF
BCG The Double Game of Digital Strategy Oct 2015 - tcm80 199053 PDF
DIGITAL STRATEGY
By Philipp Gerbert, Christoph Gauger, and Sebastian Steinhäuser
This is the first in a series of articles on set- Even sharp minds can fail to grasp the
ting and executing digital strategies with power of sustained exponential forces.
speed, foresight, and savvy. The wunderkind-turned-futurist Ray
Kurzweil has famously used the “second
263 PROCESSING
PERFORMANCE
SECOND HALF:
MOUNT EVEREST
OF RICE
4bn
FIRST HALF:
FOOTBALL FIELD 33 x 18 months = ~50years
OF RICE
Digital has entered the second half of the What can I forecast? To prepare and open
chessboard, and its growth shows no signs of the mind, analyze the breadth of digital
abating. The technology, media, and telecom- trends, their expected time frames, and po-
munications sectors are already approaching tential tipping points as what is possible
the base camp of Everest, while financial ser- evolves. Then be very explicit in stating
vices, health care, and consumer goods are your most likely scenarios and conclusions.
still on the early slopes. Energy, industrial Only with this level of clarity can you be
goods, construction, and public services are productively surprised by new develop-
arguably just beyond the football field, about ments—and prepared to act on them with
to start their steepening ascent. And every- decisive speed. It’s important to have a
one’s future remains shrouded in clouds. view on both the “usual suspects” and la-
tent discontinuities.
Moreover, industries are increasingly collid-
ing as digital moves beyond screens and Automotive companies have been contem-
software to enter the world of things and plating a future with autonomous vehicles
businesses. We will use the fast-changing for decades. But their business focus has
landscape of mobility and transportation been on efficiency, global expansion, and
to illustrate how automotive, technology, electric cars—as well as assisted driving
and start-up companies are both comple- and connected cars in the digital realm. So
menting and competing with one another. they were surprised by the rapid emer-
Their strategies suggest new ways to think gence of an autonomous-vehicle prototype
about mapping the landscape, deciding by an outsider, Google, and the broad em-
where to play, and embarking on the jour- brace of the concept that it generated.
ney of digital transformation.
The industry is suddenly awash in debate
about when autonomous vehicles will
Mapping the Landscape reach a tipping point. Will the next decade
Preparing for the double game is inherent- bring innovative fully autonomous vehicles
ly challenging but essential. As the great to consumers? Or will traditional vehicles
French scientist Louis Pasteur said, “For- simply add an increasing number of auton-
tune favors the prepared mind.” The best omous features in an evolutionary and po-
companies ask three questions to under- tentially slower process? Whatever the out-
stand and map the strategic landscape for come, autonomous vehicles are now on the
today’s and tomorrow’s digital plays. radar of automakers, which have incorpo-
EXPLORATION
Enhancement
Exploration
OFFERING
Transformation
ENHANCEMENT
TRANSFORMATION
Christoph Gauger is a partner and managing director in the firm’s Stuttgart office and an expert in
digital transformation in the automotive and mobility sector. You may contact him by e-mail at
[email protected].
Sebastian Steinhäuser is a consultant in BCG’s Munich office. You may contact him by e-mail at
[email protected].
Acknowledgments
The authors would like to thank Michael Grebe, Thomas Gumsheimer, Jan Justus, Andrej Müller, Michael
Rüßmann, Daniel Schlecht, and Manuela Waldner for inspiring discussions and comments.
The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advi-
sor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all
regions to identify their highest-value opportunities, address their most critical challenges, and transform
their enterprises. Our customized approach combines deep insight into the dynamics of companies and
markets with close collaboration at all levels of the client organization. This ensures that our clients
achieve sustainable competitive advantage, build more capable organizations, and secure lasting results.
Founded in 1963, BCG is a private company with 82 offices in 46 countries. For more information, please
visit bcg.com.