In conferences and seminars there is a steady flow of industrial companies showcasing their digitization efforts. While many, for diverse reasons, still have difficulty implementing or committing to digitization in full, almost all expect substantial benefits -not only in productivity and operational efficiency, but also in terms of top- and bottom-line growth. That latter assertion however, slightly smacks of illusory superiority syndrome, where individuals (or companies) overestimate their own capabilities relative to others. For example, in driving skills surveys large majorities of drivers routinely rate themselves better than average.
For digitization to boost growth for everybody it must unleash a sustained demand and market expansion (volumes). But that is only a necessary not a sufficient condition. In addition, the expansion must be such that incumbents are somehow protected from new entrants and can resist digitization induced price pressures. This is not likely and so the actual results of industrial…
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