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Digital-Physical Mashups
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A quarter century into the digital revolution, many companies still agonize over whether to invest significant resources in digital capabilities. Meanwhile, customers--who are used to weaving their digital and physical worlds tightly together--wonder why companies haven't done the same. The author and his colleagues at Bain have worked with and studied hundreds of companies around the globe that are trying to cope with the swiftly changing marketplace. Most industries, he writes, are still in the early stages of what he calls "digical" transformation--and the greatest barrier they face is inexperience with its execution. Drawing on Bain's study of leaders from 20 global industries, he presents five rules that can help: (1) Build your strategy around digital-physical fusion. It can be your new competitive edge. (2) Add links and strengthen linkages in the customer experience. (3) Transform the way you approach innovation. (4) Organizational separation is just an interim step. (5) Build a digical-savvy leadership team that includes the CEO. Commonwealth Bank of Australia, Nike, Disney, and Burberry are among the companies whose efforts in this realm have paid off mightily.