With the list of unicorns (billion dollar private companies/startups) growing, it's important to consider the industries that are primed for digitalisation. As an example, the transport industry has experienced a digital transformation over the past 5 years with the growth of Uber and other ride sharing services. The market resisted change and for a while consumers accepted it.
We've previously outlined the difference between digitisation and digitalisation. Digitalisation is the process of leveraging digital information to improve business process. This is already a standard amongst most if not all industries. The differentiating factor is the insights and consumer benefits that can be offered as a result of digitalisation.
It's fairly well reported that the real estate market is primed for a digital transformation. Companies are experimenting with new business models everyday (with varying degrees of success - see Purplebricks. We still pay 5% for the real estate agent experience.
Applications like realestate.com are digitally empowering consumers. Rather than having to engage an agent to assess properties and present them back to you, the information is available on demand through an application. Digitalisation has made the buying experience more convenient and comprehensive than ever before. It will continue to improve. With more data and complex technologies the buying experience can reach another level. For example, utilising algorithms (similar to Netflix and Spotify) to present back properties that we like. Whether we will see the same benefits from digitalising the selling process is a question yet to be answered.
HR & Recruitment
The human resources market has already seen significant growth with companies like Workday successfully reaching IPO and a market cap of almost $10 billion six years after they were founded. The market has already digitalised the application and advertising process through software vendors like seek or CareerOne. Yet there is still a significant market for recruitment agencies and the ‘personal service’ they offer. The further digitalisation of employment history and better matching of candidates to job roles could be a huge area for growth over the next few years.
Traditionally, the health industry has been slow to embrace digitalisation. This is predominantly due to the legislative protections for sensitive patient data. According to McKinsey only 10 percent of pharma companies base their strategic decisions on a quantified, granular understanding of how digital affects their competitive environment and business model, compared with 22 percent across all industries and 37 percent for digital leaders.
There is a huge opportunity to make healthcare more accessible through technology. Point of care diagnostic tools are gaining traction and with that comes a huge amount of meaningful data. This is where the opportunity for digitalisation and meaningful interpretation of data lies. There are still a number of challenges in the market, least of all public perception around security of sensitive data.
There is so much potential for digital transformations across these industries and countless others. The next question becomes how can we execute? The first step is to consider what is holding us back? This might come down to legacy problems, a skills gap or even a utilisation problem. WorkingMouse has the technology and processes in place to enable a digital transformation. To start formulating a digital transformation strategy, book a consultation with one of our consultants.