IT Vendors' Need for Change: Digitization Requires Transformation - Market InSight - Worldwide

Objectives of the report:

In this report, we will have a closer look at the factors that are influencing the IT vendors’ business most in order to illustrate what it means for IT vendors to do business in a digital environment.
We assess what impact digitization and further related aspects have on the IT vendors’ business models and explain why re-shaping the business model to some extent will be required for virtually every IT vendor.
We present two rough examples of how the business models need to be adjusted in the context of digital transformation. The examples make it obvious that the business model does not only need to be changed when an IT vendor re-defines its core business strategy. External factors alone – driven by digitization – are sufficient to cause the need for change.
In the last section of the report, we will explain a practical approach to transformation that has been proven successful by PAC in consulting engagements. As part of this practical approach, we introduce the Business Model Canvas and PAC’s 7 Levers to Growth model for IT vendors, which are tools that PAC applies to support IT vendors’ change processes.


PAC’s Analysis
Management summary
PAC’s recommendations

For IT vendors, all signs point to transformation – why?

Digitization and why it means “change” for IT vendors
Digitization causes changing demands
Digitization and changing demands require innovation and cause cost pressure
The shifting balance from slow IT to fast IT is changing IT decision-making
The importance of fast IT is aggravating the shortage of skills
Innovation is driving the network economy

How does digitization influence the IT vendors’ business models?
Let’s consider two different variants of change – an SAP service provider:
Brief résumé

How can IT vendors approach the change process?

Activation is the logical next step
“7 Levers to Growth” to activate business model transformation

Overview of the 7 Levers to Growth

Brief résumé and outlook

Voir l'étude : CxO Advisor