We thought that one of the most potentially intriguing questions we could ask companies was about how ‘digital’ they were today and how ‘digital’ they could ultimately be. Our digital intensity rating sheds light on how far along executives themselves believe their industries are on the curve of digitally induced business change.
The three industries with biggest gaps between present and future digitization efforts are:
- Insurance (18 percentage point gap – digital quotient today of 33% as against 51% possible in the future)
- Consumer packaged goods (15 percentage point gap – 16% today, the lowest of the 13 industries, and 31% possible)
- Media and entertainment (13 percentage point gap)
Media and entertainment has one of the biggest gaps in ‘being digital’ and yet is the most digital of the 13 industries today. This may suggest that this industry is still in the early stages of converting its products to digital offerings and its customers to digital delivery. The industry’s digital intensity is 42% on our rating scale — a bit higher than the telecom industry’s. But media and entertainment companies estimated they could be much more digital, with our future rating at 55%. (See Exhibit lll-15.)
Exhibit lll-15: Comparison of the Current Digital State and Future Digital Potential by Industry
This data suggests that companies in all 13 sectors believe they have a long way to go in making significant, digitally enabled changes to their products and business processes.