Digital Adoption is Moving Faster Than Usain Bolt
The business world is becoming more digital by the day. And the coronavirus pandemic has only spurred this development.
In fact, the business consulting firm McKinsey & Company reports that recent data shows the world has vaulted five years forward in consumer and business digital adoption in a matter of around eight weeks.
Here’s what McKinsey & Company learned from a survey it conducted at the end of April about the rapid acceleration of digital channels:
• In entertainment, digital adoption is about 64 percent, with 24 percent of adopters being new users.
• In grocery, digital adoption is 61 percent, with 31 percent of adopters being new users.
• In apparel, digital adoption is 45 percent, with 13 percent of adopters being new users.
• In travel, digital adoption is 31 percent, with 6 percent of adopters being new users.
Minneapolis-based Target’s first-quarter results reflect the rapid acceleration. Target reported Wednesday that digital comparable sales grew 141 percent in the first quarter and accounted for nearly 10 percentage points of Target’s overall comparable sales growth of 0.9 percent. Digital comparable sales accelerated every month in the quarter, from 33 percent in February to 282 percent in April.
McKinsey & Company advises businesses to focus on four efforts: refocusing and accelerating digital investments in response to evolving customer needs; using new data and AI to improve business operations; selectively modernizing technology capabilities to boost development velocity, and increasing organizational agility to deliver more quickly.
For more information and to read McKinsey & Company’s report — “The COVID-19 recovery will be digital: A plan for the first 90 days” — click here.