The digitalization triumvirate: How incumbents survive

In an era of increasing technological transformation, the lines among industries, competitors, and companies are blurring as firms and platforms combine to create unique methods for engagement. Survival and growth in a rapidly changing marketplace require incumbent companies to divest themselves of legacy thinking and to embrace internal innovation that adds value for both channel members and customers. This entails understanding the mechanisms of process digitalization, communications digitalization, and buyer digitalization. It requires incumbent firms to build and innovate on strengths currently possessed in-house and to identify and cover resource gaps. Incumbents also must work to overcome organizational inertia and effectively implement an agile approach for digitalization across the company, channels, and customer triumvirate. In sum, incumbents must: (1) consider and embrace gains from the digitalization of process, communications, and buyer; (2) respect the core business while recognizing that elements of the existing business model must adapt to changing channels and customer expectations; and (3) recognize that digitalization comes in many forms with multiple applications.