The Need for a Company-Wide Approach to Digitalization
Media and entertainment organizations have made significant investments in cloud infrastructure, with nearly 70% using some cloud technology for big data infrastructure. These early investments allow the industry to deploy all things data and run analytics on the cloud rapidly.
However, organizations will not be able to make enterprise-wide progress when analytics and digital teams try to advance to the cloud without a centralized infrastructure model, architecture, procurement, and security policy framework.
When analytics initiatives are led by IT without any business involvement, the results are unsatisfactory, often generating minor impacts or adversely affecting the business. 51% of companies across all industries, where business units take charge of prioritization and strategy, provide detailed expectations, and drive the program (while the IT function leads implementation) have seen the most business impact. This finding is mirrored among media and entertainment organizations and industry leaders as well.
CIOs must identify company-specific gaps, share these with business leaders, and jointly prioritize digitalization investments to take a data-driven approach for digital transformation vision, priorities, and roadmaps.
Only 7% of Companies Are Delivering on Their Transformational Initiatives
Our research has shown that 30% of companies will fail to survive this decade due to an inability to evolve digitally. To address this negative trend, we have developed the Digital Enterprise Evolution Model™ (DEEM).
Digital Enterprise Evolution Model™
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DEEM allows our clients to recognize digital evolution patterns, implement benchmarking and prioritization strategies, and initiate application management protocols to satisfy stakeholder and market requirements.
A Lack of Benchmarking Analytics Investment
As mentioned before, the media and entertainment industry is above average in most aspects of digital transformation. Therefore, applying benchmarking analytics is a capability that companies can leverage to become the best in the industry.
To gain a competitive advantage, digital disruption must first be encouraged by investing in analytics and understanding customer behavior and changing needs. Companies should also invest in digital technologies that can create new value propositions to address those new needs and opportunities set forth by analytical insights.
In media and entertainment, transformation is about deep audience understanding that allows for smart personalization and delivering a superior digital experience across multiple devices. Companies will only be able to develop innovative products and services when they analyze their competition, customers, partners, and technologies at a much more aggressive pace than they are today.
Human Capital Management (HCM) Is Essential for Media & Entertainment Long-Term
Over the next two years, the media and entertainment industry will rush to make digitalization investments at an even faster pace to catch up in digitalization levels across all business functions. While there will be large investments in human capital and sales, the industry must first ensure they have a strong digitalization foundation that will allow them to implement and use advanced digital technologies effectively.
The priority areas for basic process digitalization in the industry are directed towards using connected devices, platforms, and portals to improve customer experience and enable value-added services to their products. However, the traction of advanced process digitalization remains restricted to around 20%-30% of companies, as most decision makers have either not internalized the significance of advanced digitalization or have not yet developed an understanding of how to deploy advanced technology capabilities within their workforce.
To realize the urgency of upskilling and addressing the skill gap of their workforce, media and entertainment leaders will need to recognize the requirement to transform their learning functions and build new capabilities to remain competitive.