The Digital Transformation of

Business
S T R AT E G I C I N T E L L I G E N C E B R I E F I N G
Generated for Andres Bustamante on 14 March 2024
 Contents
3 Executive summary

4 1 Latest insights

4 1.1 Emerging trends

5 1.2 Current perspectives

8 1.3 Potential scenarios

10 2 Strategic context

10 2.1 New Value and Markets

11 2.2 The Digital Enterprise

12 2.3 Successful Digital Transformation

12 2.4 Leading on Inclusion, Sustainability and Trust

13 2.5 New Digital Business Models

14 References

16 About Strategic Intelligence

18 Contributors

18 Acknowledgements

Disclaimer
This document is published by the World
Economic Forum as a contribution to an
insight area. The findings, interpretations
and conclusions expressed herein are the
result of a collaborative process facilitated
and endorsed by the World Economic
Forum but whose results do not necessarily
represent the views of the World Economic
Forum, nor the entirety of its Members,
Partners or other stakeholders. Portions of
this document have been machine
generated and/or machine translated.

© 2024 World Economic Forum. All rights

reserved. No part of this publication may be
reproduced or transmitted in any form or by
any means, including photocopying and
recording, or by any information storage
and retrieval system.

The Digital Transformation of Business 2

 14 March 2024

Explore the interactive version
online
Executive summary
COVID-19 catapulted businesses everywhere into the digital-first world. Technology had already been
reshaping industries, business models, and supply chains when the pandemic hit - as people demanded
more touchless and online experiences. Yet, the results have so far been mixed, and many businesses have
fallen short of their digital transformation goals. Those businesses slow to change - particularly small firms -
have become especially vulnerable to disruption by digital natives. The technology decisions made by the
leaders of these and other companies now will help determine not only their own future success, but also the
success of their employees, customers, and partners.
The key issues shaping and influencing The Digital Transformation of Business are as follows:

New Value and Markets Leading on Inclusion, Sustainability and Trust

Technology is restructuring industries and redefining Companies have a responsibility to deploy
business value technology in a way that benefits everyone
The Digital Enterprise New Digital Business Models
Becoming ‘digital at the core’ can potentially create Technology-enabled models can help companies
more sustainable value provide value and build resilience
Successful Digital Transformation
Companies that double down on digital
transformation may be better able to weather
COVID-19

Below is an excerpt from the transformation map for The Digital Transformation of Business, with key issues
shown at the centre and related topics around the perimeter. You can find the full map later in this briefing.

The Digital Transformation of Business 3

 1 Latest insights
1.1 Emerging trends
ˎ Please note that this section is
part of our ongoing trials using
experimental artificial
intelligence technology to
enrich our user experience and
bring our members the very
latest developments and
trends. We’ll continue to
innovate and refine our efforts
based on these pilots.
A synthesis of the most recent expert analysis.
The Digital Transformation of Business is a phenomenon that has been gaining traction in recent years. It is
the process of using digital technologies to create new or modify existing business processes, products, and
services. This transformation is driven by the need to stay competitive in a rapidly changing business
environment, as well as the need to meet customer demands for more personalized and efficient services.
One of the most significant emerging trends in the Digital Transformation of Business is the rise of artificial
intelligence (AI). AI is being used to automate processes, improve customer service, and create new products
and services. AI is also being used to analyze customer data and provide insights into customer behavior.
This data can then be used to create more personalized experiences for customers, as well as to improve the
efficiency of business operations.
Another emerging trend is the use of cloud computing. Cloud computing allows businesses to store and
access data from anywhere in the world, as well as to access powerful computing resources on demand.
This has enabled businesses to become more agile and responsive to customer needs, as well as to reduce
costs associated with data storage and processing.
The rise of the Internet of Things (IoT) is also transforming the way businesses operate. IoT devices are
connected to the internet and can be used to collect data from the physical world. This data can then be
used to create new products and services, as well as to improve existing ones. For example, IoT devices can
be used to monitor the performance of machinery and equipment, as well as to detect potential problems
before they become serious.
Finally, the emergence of blockchain technology is also having a major impact on the Digital Transformation
of Business. Blockchain technology is a distributed ledger system that allows for secure and transparent
transactions. This technology is being used to create new business models, as well as to improve existing
ones. For example, blockchain technology can be used to create new payment systems, as well as to
improve the security of existing ones.
The Digital Transformation of Business is a rapidly evolving phenomenon that is having a major impact on the
way businesses operate. The emergence of AI, cloud computing, the Internet of Things, and blockchain
technology are all transforming the way businesses operate, as well as creating new opportunities for
businesses to become more efficient and responsive to customer needs. As these technologies continue to
evolve, businesses will need to stay ahead of the curve in order to remain competitive.
The Digital Transformation of Business 4
1.2 Current perspectives
GSMA - Public Policy
Resilient connectivity:
Addressing the coverage and
usage gaps in small island
nations
12 March 2024
Small island nations face unique challenges in
achieving comprehensive digital connectivity. These
challenges include lack of investment due to small
markets, adapting to technological advancements,
disaster management, driving the adoption of digital
services, and addressing cybersecurity concerns.
Palau is leading by example in modernizing its ICT
policies and regulations to improve connectivity.
Overcoming connectivity challenges in small island
nations requires collaboration between
governments, private sector players, international
organizations, and communities.
Business and Technology University
Application of Artificial
Intelligence for Monetary
Policy-Making
19 February 2024
Artificial intelligence (AI), specifically reinforcement
learning (RL), can be applied to complex economic
problems in monetary policy-making. AI-generated
monetary policy rules exhibit significant
nonlinearities, which can explain the limitations of
traditional linear modeling toolkits. The analysis of
these rules allows for the estimation of the neutral
policy rate. The potential combination of AI with
FinTech developments like decentralized finance
(DeFi) and central bank digital currencies (CBDCs)
is discussed as a feasible approach to monetary
policy.
Cognizant
In 2024, business leaders
should watch these 7 tech
trends
03 January 2024
Gen AI is a major tech trend that business leaders
should watch in 2024. It has the potential to create
new opportunities and challenges in all industries.
Some key trends to look out for include the
decrease of traditional hierarchies, the emergence
of a new talent war, the importance of soft
leadership skills, the proliferation of specialized AI
agents, the improvement of customer satisfaction
and personalization, the use of gen AI in fraud
detection and regulatory compliance, and the ability
to free up clinicians to focus more on patient care.
UNIDIR
Internet Fragmentation and
Cybersecurity: A Primer
06 December 2023
The promotion of an open, secure, stable,
accessible, and peaceful ICT environment is a
recurrent objective in the multilateral processes
relating to international and ICT security at the
United Nations. For example, in the final report of
the Group of Governmental Experts (GGE) on
Advancing Responsible State Behavior in
Cyberspace
Nature
ChatGPT one year on: who is
using it, how and why?
01 December 2023
In just a year, ChatGPT has permeated scientific
research. Seven scientists reveal what they have
learnt about how the chatbot should — and
shouldn’t — be used. In just a year, ChatGPT has
permeated scientific research. Seven scientists
reveal what they have learnt about how the chatbot
should — and shouldn’t — be used.
Stanford Social Innovation Review
How Business Can Fight
Populism (SSIR)
26 November 2023
Populism is re-emergent worldwide, posing direct
threats not just to democratic governance but also
to socially responsible businesses. Despite the
populist challenge, businesses still have an
opportunity to do good and support liberal
democratic forces.
Global Solutions Initiative
Value Beyond Accounting –
from Sustainability Disclosure
to Meaningful Business
Steering
17 November 2023
The availability of reliable, transparent and truly
holistic sustainability information is a prerequisite for
meaningful and transformative business and
investment steering. Up to now, such data remains
highly fragmented, difficult to interpret and generally
scarce.
Boston Consulting Group
How Companies Can Speed
Up the Business of Business
Building
15 November 2023
For at least two decades, companies have
assiduously built up their digital capabilities.
They’ve upskilled their staffs and shifted product
development to agile, multidisciplinary teams.
They’ve embedded software in everything they sell,
and they’ve invested in innovation and design
The Digital Transformation of Business 5
thinking supported by enterprise-wide digital
platforms.
The Conversation
How subtle forms of
misinformation affect what we
buy and how much we trust
brands
04 January 2024
Misinformation, both direct and indirect, has a
significant impact on consumer trust in brands.
Direct misinformation includes fabricated customer
reviews and fake news campaigns targeting
brands, while indirect misinformation cloaks itself in
issues like politics, social affairs, or health issues.
Continuous exposure to misinformation leads to
decreased trust in mainstream media and can alter
consumer purchase decisions and views of brands.
Brands should take preemptive measures to instill
trust in consumers through tailored marketing
communications. Understanding the multifaceted
impacts of misinformation is crucial in fortifying trust
in an era where it is increasingly under siege.
World Economic Forum
How the role of telecoms is
evolving in the Middle East
16 February 2024
The global telecommunications market is projected
to reach $2.65 trillion by 2030, and emerging
technologies are reshaping the industry in the
Middle East. Telecoms are leveraging new
technologies like AI to increase resilience, reduce
incidents, and improve sustainability. By integrating
these technologies, telecoms can diversify their
services and monetize their infrastructure
investments. In the Middle East, telecoms are
investing heavily in 5G networks, offering a wide
range of services and positioning themselves as
enablers of digital transformation. The rise of 5G is
driving opportunities in industries like manufacturing
and energy and transforming business models.
With 6G on the horizon, the industry continues to
evolve.
Frontiers in Medical Engineering
A review of beamforming
microstrip patch antenna
array for future 5G/6G
networks
21 February 2024
Beamforming is an essential technique for achieving
reliable and high-capacity communication in 5G
networks. This review article provides a
comprehensive analysis of the beamforming
microstrip patch antenna array techniques for
communication systems in future 5G/6G networks.
It explores the fundamental concepts and principles
of beamforming, including analog, hybrid, and
digital techniques. The advantages, disadvantages,
and suitability of each approach for 5G applications
are discussed. The review also covers various
beamforming techniques employed in 5G, such as
traditional beamforming, massive MIMO
beamforming, hybrid beamforming, and adaptive
beamforming. The performance trade-offs and
applicability of each technique in different scenarios
are examined. Additionally, the review discusses
the use of multiple couplers for feeding the antenna
and the dielectric substrate used in designing the
beamformer. The findings of this paper are valuable
for researchers, scholars, and engineers working in
the field of 5G wireless communications and
antenna design.
UN Women Georgia
Women in AI: BTU and UN
Women launching new project
26 December 2023
UN Women and the Business and Technology
University are launching a new project called
”Women in Artificial Intelligence” (Women in AI) to
increase the involvement of women in technology.
The project aims to select and train 200 women
from all over Georgia in artificial intelligence and
web development over a nine-month period. It is
part of the Women’s Economic Empowerment
component of the UN Women project ”Good
Governance for Gender Equality in Georgia”.
Anyone over the age of 16 can participate by filling
out an online registration form and passing
assessment tests. The project will begin
implementation on February 1, 2024.
ESCP Business School
Transforming the arts through
sustainable innovation
29 November 2023
Finnish National Opera and Ballet & FEDORA show
how the lessons learned from sustainable
innovation in arts and culture can be extended to
other sectors of the economy.
The post Transforming the arts through sustainable
innovation appeared first on The Choice by ESCP .
GreenBiz
The US/China climate
agreement: 5 takeaways for
business leaders
16 November 2023
Earlier this week, the United States and China
released their first joint climate agreement since
2021, reigniting the possibility of cooperation
between the world’s two biggest emitters of
greenhouse gasses. Full of promising language but
light on specifics, the so-called ”Sunnylands
Statement” renews superpower cooperation, at
least potentially, heading into COP 28 in Dubai.
The agreement represents ”more of a political
gesture of positive intent rather than an action
plan,” said Taylah Bland, senior program officer for
The Digital Transformation of Business 6
the China Climate Hub at Asia Society Policy
Institute. ”The Sunnylands Statement serves as a
signal that engagement on the issue of climate
change between both parties has resumed and is
on the right path.”
Here’s a breakdown of what business leaders
should know, and expect, from the new agreement.
Cities Today
How cities are building
bridges for digital inclusion
26 February 2024
Cities across Europe are implementing innovative
initiatives to bridge the digital divide and ensure
equal access to digital technologies. Ghent,
Belgium uses volunteers and professional coaches
to answer digital questions and provide support in
social services and employment. Brussels, Belgium
prioritizes digital rights and provides training and
support services for residents. Amsterdam,
Netherlands collects and distributes laptops to
those in need and offers support and training.
Eindhoven, Netherlands provides introductory
internet courses and support in digital government
services. Leipzig, Germany aims to expand access
and engagement in the digital world.
ESCP
Web3 technologies can foster
consumer engagement and
loyalty
07 February 2024
Web3 technologies, such as blockchain and
non-fungible tokens (NFTs), have the potential to
reshape digital ownership and revolutionize
consumer engagement and loyalty. Web3
de-liquifies digital assets by bringing back notions
of ownership, longevity, and materiality. It offers
individualization, blurs the lines between physical
and digital realms, empowers users with control
over intellectual property, and fosters community
building. Brands can use Web3 to connect with
consumers through low entry levels, gamification,
and exclusive communities. However, widespread
adoption and business application are still in the
experimental stage, and industry-wide collaboration
is needed for a unified approach.
London Business School Review
Can taxes make businesses
more sustainable?
22 November 2023
In this episode of the Why podcast, London
Business School’s Marcel Olbert discusses the role
of taxation in companies and governments with
Alenka Turnsek of EY.
While there isn’t one global system of holding
companies accountable for their sustainability
efforts, there are several different country-wide
efforts ongoing.
Oliver Wyman
6 Steps For Achieving A
Successful Digital
Transformation
05 December 2023
Only 25% of businesses have succeeded in their
digital transformation efforts, according to a survey
of more than 240 C-suite executives. To increase
the odds of success, executives should follow six
key steps: create a clear vision, equip the
workforce, share accountability, focus on small
goals, leverage data, and build agility and resilience.
Specific tactics to achieve these steps include
capturing the vision through conversations with
stakeholders, upskilling the workforce, establishing
shared accountability between technology and
business executives, and setting achievable
milestones. Successful digital transformations
require strong leadership, alignment, and
adaptability.
Wired
Sierra Says Conversational AI
Will Kill Apps and Websites
16 February 2024
Sierra, an AI startup founded by former Salesforce
CEOs, believes that conversational AI will surpass
the importance of websites and apps in the digital
world. Sierra aims to create AI agents that can
function as the AI versions of companies,
understanding their values and procedures and
providing customer interactions that are both
genuine and relatable. The company uses multiple
AI models to prevent the agents from providing
inaccurate information and has a goal of shifting
automated customer interactions from being
frustrating to enjoyable. WeightWatchers is one of
Sierra’s initial clients, utilizing Sierra-created agents
for customer interactions. The company claims that
these agents can provide empathy at scale,
although some question the authenticity of empathy
from a robot.
The Digital Transformation of Business 7
 1.3 Potential scenarios
In this section, we use experimental artificial intelligence to surface a range of scenarios related to the topic.
These are not predictions but are provided to anchor discussions and help you think through and anticipate
potential opportunities and risks.
ˎ Please note that this section is
part of our ongoing trials using
experimental artificial
1. A major technology company launches
intelligence technology to
enrich our user experience and a blockchain-based platform for small
bring our members the very businesses
latest developments and
trends. We’ll continue to A major technology company announces
innovate and refine our efforts plans to launch a blockchain-based platform
based on these pilots.
that will enable small businesses to access
new markets and customers. The platform
will provide a secure and transparent way for
businesses to connect with buyers and
suppliers, and will offer a range of tools and
services to help businesses grow and
succeed. This will have a significant impact
on the way small businesses operate, and
will help to level the playing field for
entrepreneurs and startups.
Related topics: New Value and Markets, New
Digital Business Models
3. A new startup launches a
blockchain-based platform for artists to
monetize their work
A new startup launches a blockchain-based
platform that enables artists to monetize their
work and connect with fans directly. The
platform provides a secure and transparent
way for artists to sell their work and receive
payments, and enables fans to support their
favorite artists more easily. This will have a
significant impact on the way artists and fans
interact, and will help to create a more
equitable and sustainable creative economy.
Related topics: New Value and Markets, New
Digital Business Models
2. A major retailer adopts AI and ML
technologies to automate its supply chain
A major retailer announces plans to use AI
and ML technologies to automate its supply
chain and logistics operations. The company
expects this move to reduce costs and
improve efficiency, but it also raises concerns
about the impact on jobs and the role of
human workers in the digital economy. This
will have a significant impact on the way
businesses approach the adoption of AI and
ML technologies, and will lead to increased
focus on the ethical and social implications of
these technologies.
Related topics: The Digital Enterprise,
Successful Digital Transformation
4. Leading companies launch initiative to
promote sustainability and inclusion in the
digital economy
A group of leading companies in the
technology and finance sectors come
together to launch a new initiative aimed at
promoting sustainability and inclusion in the
digital economy. The initiative will focus on
developing new digital business models that
prioritize social and environmental impact,
and will provide funding and support to
startups and entrepreneurs working in this
space. This will have a significant impact on
the way businesses approach digital
transformation, and will help to create a more
sustainable and equitable digital economy.
Related topics: Leading on Inclusion,
Sustainability and Trust, New Digital Business
Models
The Digital Transformation of Business 8
 5. A leading social media platform adopts 6. A major healthcare provider adopts
AI and ML technologies for content blockchain technology for patient data
moderation management

A leading social media platform announces A major healthcare provider adopts

plans to use AI and ML technologies to
improve content moderation and reduce the
spread of misinformation. The platform
expects this move to improve user trust and
engagement, but it also raises concerns
about the impact on free speech and the role
of human moderators. This will have a
significant impact on the way social media
platforms approach content moderation, and
will lead to increased focus on the ethical and
social implications of these technologies.
Related topics: Leading on Inclusion, Sustain-
ability and Trust, New Digital Business Models
blockchain technology to improve patient
data management and privacy. The platform
provides a secure and transparent way for
patients to access and control their health
data, and enables healthcare providers to
share information more efficiently and
effectively. This will have a significant impact
on the way healthcare is delivered, and will
help to improve patient outcomes and
reduce costs.
Related topics: The Digital Enterprise,
Successful Digital Transformation

A variety of articles have been used by our artificial intelligence in order to formulate these scenarios. These
acted as our ”signposts” and provide clues or hints about what the future may entail. We recommend reading
them for further context:

– Is your industry at risk of a cyberattack?, World Economic Forum

– Central banks’ rate push a risk to growth, and other economy stories to read this week, World Economic
Forum
– Why U.S. Regional Banks Are Still in Crisis, Kellogg School of Management
– How to Scale Local Innovations in Big Companies, Harvard Business Review

The Digital Transformation of Business 9

 2 Strategic context
The key issues shaping The Digital
Transformation of Business.

The following key issues represent the most strategic trends shaping the topic of The Digital Transformation
of Business. These key issues are also influenced by the other topics depicted on the outer ring of the
transformation map.

FIGURE 1 Transformation map for The Digital Transformation of Business

2.1 New Value and Markets

Technology is restructuring industries and redefining business value

The average tenure of a company in the S&P 500 Index of large, US-traded firms is expected to decline to
just 12 years by 2027, from 24 years in 2016. Companies are increasingly being disrupted by more
digitally-innovative peers, or by new entrants able to create business value in novel ways - and corporate
leaders face an unprecedented combination of disruptive technologies, changing customer behaviour, and

The Digital Transformation of Business 10

 social and environmental issues. However, these leaders also have a significant opportunity to help create
new value; the use of artificial intelligence will generate an estimated $2.9 trillion in business value in the year
2021 (the equivalent of 6.2 billion hours of worker productivity), advanced 5G telecom networks are expected
to generate more than $600 billion in new business by 2026, and the market for distributed “edge”
computing is expected to more than triple to $9 billion between 2019 and 2024. By 2025, 75% of the world’s
population will be interacting with data every day, according to one estimate, and everyone online will have at
least one data interaction every 18 seconds. New value is already emerging in previously only theoretical
scenarios, like readily-available virtual meetings.

Customer expectations are changing as technology is embedded in everyday life (according to an Accenture
study, more than half of consumers say technology plays a prominent role or is ingrained in almost all
aspects of their daily lives). As a result, people increasingly expect technology to be personalized and
on-demand. This has altered traditional roles and shifted the distribution of value. For example, the
producers of digital entertainment, like Hollywood studios, can increasingly build a direct, online relationship
with audiences, while traditional distributors of content like Amazon or Netflix increasingly look to create their
own. People also increasingly want transparency on how companies source their products and ensure safe
working conditions, and clarity on their stances regarding environmental and social issues. Accenture has
found that a decline in stakeholder trust can severely impact an organization’s competitiveness, and
significantly undercut revenue. While this dynamic may vary according to customer needs, income levels,
and geography, organizations everywhere need to come up with new ways to identify and create a genuine
appeal for people, while helping secure a future for more than just their own profit.

Related topics: Fourth Industrial Revolution, Future of Computing, The Digital Economy, Economic Progress,
Internet of Things, Artificial Intelligence, Innovation, Entrepreneurship, Future of Work, 5G, Digital
Communications, Corporate Governance

2.2 The Digital Enterprise

Becoming ‘digital at the core’ can potentially create more sustainable value

Millennials and Gen Z account for nearly half the global workforce, and are updating expectations for
employers everywhere. Remote working is important to many millennials (who are now as old as 40), for
example, and COVID-19’s social distancing requirements have accelerated what had been a gradual shift to
both more remote working, and more digitally-enabled customer experiences. Companies will need to be
able to accommodate this with digital solutions that maintain engagement, health, and well-being. In
addition, as workforces become more distributed, and connected devices and data networks are
increasingly used, ensuring security will become more challenging - necessitating the management of more
significant vulnerabilities. Companies will generally need to be open and flexible, to proactively plan for
cybersecurity risks, and to be willing to take responsibility for helping employees acquire new and necessary
digital skills. Other reasons for aggressively pursuing a digital transformation predate the pandemic;
according to the MIT Initiative on the Digital Economy, the “digerati,” or firms that excel both in digital intensity
and transformation management capabilities, have been shown to be 26% more profitable than their peers.

In response, an estimated 87% of CEOs expect to see a change in their operating models within three years,
according to research cited by Deloitte in 2019. Technology and data can help support demand forecasting,
inventory stocking, tracking, and delivery. Amazon, for example, has used a shipping model meant to predict
buying behaviour in order to have products on hand locally before they are ordered. As COVID-19 disrupted
supply chains with lockdowns and border closures, many organizations looked for ways to bolster resilience
and transparency, and many manufacturers turned to selling products through channels like Amazon.
Increasingly, companies everywhere will make greater use of technologies such as blockchain, cloud
computing, artificial intelligence, and robotics as part of efforts to build resilience - and Unilever and United
Kingdom-based supermarket chain Sainsbury’s have already sought to use blockchain to increase the
sustainability and transparency of their supply chains. While the pandemic has led to revenue losses in many
industries, investing in digital solutions can be one means to help better manage costs during a difficult time.

Related topics: Data Science, Digital Communications, Future of Work, Education, Internet of Things,
Innovation, Artificial Intelligence, Entrepreneurship, Cybersecurity, The Digital Economy, Sustainable
Development, Fourth Industrial Revolution, 5G, Blockchain

The Digital Transformation of Business 11

2.3 Successful Digital Transformation
Companies that double down on digital transformation may be better able to weather COVID-19

According to the results of a survey published by SAP, while nearly all corporate leaders think digital
technologies will drastically disrupt their industry, just 44% believe they are prepared for that disruption.
Soon, just about every company will need to think like a technology company - or risk extinction. Many
companies struggle to realize a return on their investment in digital transformation. Companies collectively
spent an estimated $1.2 trillion on transformation efforts in 2019, according to IDC, yet research published
by MIT found that only 13% of business leaders believe their organizations are truly equipped to compete in
the digital age. Evidence suggests that the most successful efforts do not approach transformation simply as
a way to experiment or cut costs, but rather as a fundamental tool to create new value. Artificial intelligence,
5G, and autonomous vehicles have all amplified opportunities to create value; an estimated 80% of all
emerging technologies will have foundations in AI by 2021, while the number of 5G connections in the world
is expected to triple by 2023, and more than half of all passenger vehicles will be electric by 2040.

As the financial and business impact of COVID-19 spreads, companies that double down on responsible
digital transformation efforts may be better able to thrive. However, strong leadership will be required.
Fostering cultural changes and a “digital at the core” mindset will be necessary, as will crowdsourcing and
co-creating and piloting new ideas and business models among different teams. Large companies that are
not digital natives often find it difficult to replace legacy structures and processes with digital-first approaches.
At all of these companies, leaders need to be equipped with digital skills to keep pace with technology
advancements, and to make timely decisions. However, according to the results of a survey published by the
MIT Sloan School of Management, only 9% of executives strongly believed their leaders had the right skills to
thrive in a digital economy. The need for digital skills at all levels applies to even the most traditional of
businesses; the European Central Bank, for example, has recommended that banks need to adopt new and
diverse skills and experience when it comes to technology and digital innovation - especially at the board
level.

Related topics: Sustainable Development, 5G, Artificial Intelligence, Future of Work, Internet of Things,
Innovation, Fourth Industrial Revolution, Digital Communications, The Digital Economy, Entrepreneurship

2.4 Leading on Inclusion, Sustainability and Trust

Companies have a responsibility to deploy technology in a way that benefits everyone

Businesses must address growing concerns about how technology affects inequality, personal freedoms,
and access to decent jobs. Many company leaders are faced with calls from their own customers and
employees to make a more positive contribution to society. In 2019, the Business Roundtable, an
organization that includes the CEOs of some of the most prominent companies in the world and once
defined a company’s purpose as serving shareholders, re-defined that purpose to include a commitment to
all stakeholders. COVID-19 has underlined the risk of leaving half the world cut off from the internet and the
digital economy - at a time when schools have closed, many people have lost jobs, and social media has
been needed to both expose racial injustice and rally efforts to confront it. In a digital-first world, there is an
opportunity to fundamentally redefine business and reinvent models with renewed purpose. Technology can
help ensure the health and well-being of often-remote workforces, increase the transparency of supply
chains, reduce carbon emissions, responsibly handle personal data, promote racial equality, and
accommodate a more diverse array of potential customers and users.

Many companies have deployed digital tools to support the response to COVID-19. A smartphone app
developed by South Korea’s KT Corporation, for example, can inform users of outbreaks near their location,
and educate them about symptoms and prevention. IBM has meanwhile provided access to its
artificial-intelligence-powered technologies to help researchers develop potential treatments for the disease.
Other companies have used technology to look after their own employees, such as Bank of Ireland’s
increased employee access to a wellness program that includes an app and interactive courses on mental,
physical, and financial health. Companies can also advance digital transformation in ways that reduce
environmental impact, and provide a means for more people to gain access to important information and
services. Though roughly half of the global population still does not use the internet, businesses and
governments have an opportunity to collaborate in a way that that better addresses this digital divide.
Ultimately, research suggests that those companies that orient their digital transformation plans around a
higher purpose are likely to better gain the trust of users, and to be more competitive.

The Digital Transformation of Business 12

 Related topics: Innovation, The Digital Economy, Sustainable Development, Global Risks, ESG, Corporate
Governance, Systemic Racism, Fourth Industrial Revolution, Leadership, Circular Economy, Future of Work,
Climate Change, Digital Communications, Internet Governance

2.5 New Digital Business Models

Technology-enabled models can help companies provide value and build resilience

Most executives see innovation as critical for their business. And, according to the McKinsey Global
Innovation Survey, 80% think their current business models are at risk of disruption. COVID-19 has only
accelerated the shift to online and touchless experiences, and spurred innovative uses of technology and
data that will increasingly underpin business models. Digital subscription models, like Dollar Shave Club or
Netflix, have already risen to prominence, as have on demand models like Uber or TaskRabbit - while
technology has made it increasingly easy to adopt platform models upon which users and even other
companies can build their own presence (examples include Facebook or YouTube). The World Economic
Forum estimates that 70% of the value created over the coming decade will be based on digitally-enabled
platform business models, due to the rapid digitalization of economies around the world. Collaboration can
also unlock value - research shows that digital “ecosystems” are expected to account for more than 30% of
global corporate revenue by 2025. One example is Project Connected Home, a joint effort led by Amazon,
Apple, Google and the Zigbee Alliance to set standards for smart home technology.

“As-a-service” business models are an increasingly prevalent and effective way for companies to turn what
might otherwise be one-off purchases into more predictable, longer-term, and typically larger revenue
streams. Microsoft, for example, now offers its Office 365 product through software-as-a-service
subscriptions, as an alternative to purchasing an entirely new version of Office version every few years.
Meanwhile Amazon offers its AWS product in a way that provides infrastructure as a service (IaaS) on a
subscription basis. Thanks to increased digital connectivity and internet use, there has been a surge of data
that can potentially provide value not just to companies but to society in general. Many companies are
exploring innovative ways to unlock the value of this data in a responsible way by embedding trust, privacy,
and security into their models. A company called Points Technology has for example used a confidential
computing framework based on TEE (trusted execution environment) and other encryption technology to
make data usable but not visible - in order to ensure privacy, security, and compliance when it comes to
banking, government-led data-sharing initiatives, and marketing campaigns.

Related topics: Economic Progress, Innovation, Data Science, Internet of Things, The Digital Economy,
Entrepreneurship, 5G, Digital Communications, Blockchain, Digital Identity, Circular Economy, Fourth
Industrial Revolution

The Digital Transformation of Business 13

 References
1. GSMA - Public Policy , ”Resilient connectivity: Addressing the coverage and usage gaps in
small island nations”: www.gsma.com

2. Business and Technology University, ”Application of Artificial Intelligence for Monetary

Policy-Making”: btu.edu.ge

3. Cognizant, ”In 2024, business leaders should watch these 7 tech trends”: www.cognizant.com

4. UNIDIR, ”Internet Fragmentation and Cybersecurity: A Primer”: unidir.org

5. Nature, ”ChatGPT one year on: who is using it, how and why?”: www.nature.com

6. Stanford Social Innovation Review, ”How Business Can Fight Populism (SSIR)”: ssir.org

7. Global Solutions Initiative, ”Value Beyond Accounting – from Sustainability Disclosure to

Meaningful Business Steering”: www.global-solutions-initiative.org

8. Boston Consulting Group, ”How Companies Can Speed Up the Business of Business Building”:
www.bcg.com

9. The Conversation, ”How subtle forms of misinformation affect what we buy and how much we
trust brands”: theconversation.com

10. World Economic Forum, ”How the role of telecoms is evolving in the Middle East”:
www.weforum.org

11. Frontiers in Medical Engineering, ”A review of beamforming microstrip patch antenna array for
future 5G/6G networks”: www.frontiersin.org

12. UN Women Georgia, ”Women in AI: BTU and UN Women launching new project”:
georgia.unwomen.org

13. ESCP Business School, ”Transforming the arts through sustainable innovation”:
thechoice.escp.eu

14. GreenBiz, ”The US/China climate agreement: 5 takeaways for business leaders”:
www.greenbiz.com

15. Cities Today, ”How cities are building bridges for digital inclusion”: cities-today.com

16. ESCP, ”Web3 technologies can foster consumer engagement and loyalty”: escp.eu

17. London Business School Review, ”Can taxes make businesses more sustainable?”:
www.london.edu

18. Oliver Wyman, ”6 Steps For Achieving A Successful Digital Transformation”:

www.oliverwyman.com

19. Wired, ”Sierra Says Conversational AI Will Kill Apps and Websites”: www.wired.com

The Digital Transformation of Business 14

20. World Economic Forum, ”Is your industry at risk of a cyberattack?”: www.weforum.org

21. World Economic Forum, ”Central banks’ rate push a risk to growth, and other economy stories
to read this week”: www.weforum.org

22. Kellogg School of Management, ”Why U.S. Regional Banks Are Still in Crisis”:
insight.kellogg.northwestern.edu

23. Harvard Business Review, ”How to Scale Local Innovations in Big Companies”: hbr.org

The Digital Transformation of Business 15

 About Strategic Intelligence
Our approach
In today’s world, it can be difficult to keep up with the latest trends or to make sense of the countless
transformations taking place. How can you decipher the potential impact of rapidly unfolding changes when
you’re flooded with information - some of it misleading or unreliable? How do you continuously adapt your
vision and strategy within a fast-evolving global context? We need new tools to help us make better strategic
decisions in an increasingly complex and uncertain environment.

This live briefing on The Digital Transformation of Business, harnesses the World Economic Forum’s Strategic
Intelligence platform to bring you the very latest knowledge, data and context from our 300+ high quality
knowledge sources. Its aim is to help you understand the global forces at play in relation to The Digital
Transformation of Business and make more informed decisions in the future.

Each day, our Strategic Intelligence platform aggregates, distills and synthesizes thousands of articles from
around the world. We blend the best of human curation with the power of machine learning to surface
high-quality content on over two hundred global issues to our one million users globally. Our hand-picked
network of content partners from around the world means that we automatically exclude much of the noisy
clickbait, fake news, and poor quality content that plague the Internet at large. We work with hundreds of
think tanks, universities, research institutions and independent publishers in all major regions of the world to
provide a truly global perspective and we are confident that our data are well positioned when it comes to the
intrinsic biases inherent to open text analysis on uncurated content from the Internet. For further context on
our approach, you may be interested to read Strategic trend forecasting: anticipating the future with artificial
intelligence and These Are The 3 Ways Knowledge Can Provide Strategic Advantage.

↓ A leading expert presenting

a transformation map at our
Davos Annual Meeting

The Digital Transformation of Business 16

Transformation maps
Our Transformation Maps are dynamic knowledge visualisations. They help users to explore and make sense
of the complex and interlinked forces that are transforming economies, industries and global issues. The
maps present insights written by experts along with machine-curated content. Together, this allows users to
visualise and understand more than 250 topics and the connections and inter-dependencies between them,
helping in turn to support more informed decision-making by leaders.

The maps harness the Forum network’s collective intelligence as well as the knowledge and insights
generated through our activities, communities and events. And because the Transformation Maps are
interlinked, they provide a single place for users to understand each topic from multiple perspectives. Each of
the maps has a feed with the latest research and analysis drawn from leading research institutions and media
outlets around the world.

At the centre of each map is the topic itself. This is surrounded by its ”key issues”, the forces which are
driving transformation in relation to the topic. Surrounding the key issues are the related topics which are also
affected by them. By surfacing these connections, the map facilitates exploration of the topic and the
landscape within which it sits.

Continue online
Our suite of Strategic Intelligence tools are available to help you keep up to date across over 300 topics.

On the web In the app stores

Visit Strategic Intelligence on your desktop or You can find our Strategic IQ app on the Apple App
laptop. All modern browsers supported. Store, Google Play Store or Huawei App Gallery.

You can also follow Strategic Intelligence on Twitter.

The Digital Transformation of Business 17

Contributors
World Economic Forum
Abhinav Chugh,
Content and Partnerships Lead

Manju George,
Head of Strategic Impact Integration

Bryonie Guthrie,
Practice Lead, Foresight and Organizational
Transformation

James Landale,
Head of Content and Partnerships

John Letzing,
Digital Editor

Dhwani Nagpal,
Community Specialist, Women’s Health

Acknowledgements
Content Providers featured in this briefing

Boston Consulting Group Nature

Business and Technology University

Oliver Wyman
Cities Today

Cognizant Stanford Social Innovation Review

ESCP
The Conversation
ESCP Business School
UN Women Georgia
Frontiers in Medical Engineering

GSMA - Public Policy UNIDIR

Global Solutions Initiative

Wired
GreenBiz

London Business School Review World Economic Forum

The Digital Transformation of Business 18

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