“90% of CEOs believe the digital economy will impact their industry, but less than 15% are executing on a digital strategy.”
-MIT Sloan & Capgemini
“We went from being the Flintstones to the Jetsons in 9 months.”
-Dan Schulman, PayPal
*Both of the quotes above are from prior to 2020.
The changes many predicted would occur by 2030 have arrived a bit earlier than expected:
- Manufacturing: The average cost of a single hour of downtime for a manufacturer exceeds $100,000. Technology that performs the predictive maintenance of machinery is poised to soar according to Information Intelligence Consulting.
- Healthcare: McKinsey surveys show that while only 11% of U.S. residents used telehealth services in 2019, 76% are now interested in using these services going forward.
- Retail: According to 2PMInc., Whole Foods e-commerce has grown from 0% in 2016, to nearly 25% and accelerating in 2020. Retailers are adjusting rapidly to consumer demand and preferences.
- Financial Services/Payments: Mastercard reports that 45% of U.S. consumers prefer to shop at stores that have contactless Points of Sale (POS) according to a report by Mercator Advisory Group entitled “2020 Annual U.S. Debit Card Market Data Review.”
- Advanced Computing: In 2013, AWS earned revenues of just over 3 billion U.S. dollars, a number which has since ballooned and sits at over 35 billion U.S. dollars as of 2019.
- Industrial Real Estate / Logistics: As much as 50% of JLL’s leasing activity is predicted to come from e-commerce related real estate needs.
- Energy: The U.S. solar market will install nearly 100 GWdc of solar from 2021-2025, 42% more than was installed over the last five years according to Wood Mackenzie.
The time for this change has passed, the time to execute is upon us – let’s adapt, learn, and work on ensuring that these changes lead to positive growth and an increased quality of life for our communities.
-Kenny McDonald