Digital Economy - The Pareto Principle and how it Relates to Threats from Digital Innovation

The 80/20 Rule

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The Pareto Principle can be applied to most things, from analytics to the physical world.

For organisations the principle is a great reminder to focus on the 20% that matters and should serve as a daily reminder to focus 80% of our time and energy on the 20% of our work that is really important i.e. Don't just "work smart", work smart on the right things.

Applying this principle to organisational metrics helps separate the vital few from the useful many.

Threats from Digital Innovation

There are three prime industries where the threat from Digital Innovation is greatest.

  • Financial Services – the Retail Banks predominately, but also Insurance and Financial Markets (Wealth Management)
  • Retail
  • Transport and Travel

How does an organisation respond when there is a requirement for:

  • Speed of delivery for processes
  • Demand for Automation
  • Demand for continual Innovation
  • Competitive Obligation - need to keep service ahead of competition

Does your organisation spend 80% of its time on data load and preparation and only 20% using it to produce analytics?

Does your organisation need to:

  • Discover all the data that it holds.
  • Build a secure repository for this data.
  • Securely test the data in a safe environment.

Analytics are there to inform your organisation when taking the large decisions and to help make your regular decisions smarter.

As digital forces reduce transaction costs, and value chains disaggregate; third-party products and service can be quickly integrated into the gaps, for more information on how these challenges can be met download the whitepaper below.

 

Download Our Free Digital Innovation Whitepaper

 

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