Thanks to the massive acceleration of technology, the future will belong to companies that put technology at the center of their outlook, capabilities, and leadership mandate. Here are four ways some leading-edge companies are already rethinking the role of digital technology in their overall business strategy:

1. Drive differentiation with digital technology

As digital technology becomes ever more important, the sources of comparative advantage are now tilting toward digital capabilities – not simply in business-models but also as a key driver of productivity, cost optimization, and other business outcomes.

2. Drive digital productivity from in both inputs and outputs

For many companies, the productivity bar has shifted from the leanest of their incumbent peers to digital natives who boast a high degree of digitization, straight-through processing, and largely variable cost bases. Continued innovation is also leading to technology-driven improvements in productivity, which includes the ability to rapidly adapt and grow. Leading digital players leveraging hyperscale-ready solutions can fulfil more customers and achieve greater revenue with minimal rise to their overall costs.

3. Reallocate resources at digital speed

Companies now need to reallocate resources at an even faster pace. For many companies, an effective response to the pandemic required an unprecedented reallocation of capital and talent toward digital. Remote working, migration to the cloud, and last-mile deliveryall required rapid, dynamic resourcing to support innovative changes – and all were achieved in a matter of days or weeks rather than the one to two years lmost companies had previously thought would be necessary.

4. Get digital M&A right

What do you need in your digital M&A playbook? First, establish strong governance and accountability that includes having clear roles. By assigning the right people to the right roles, and equipping them with the right tools, leaders can lay a foundation for success. Second, invest in improved digital capabilities, solidifying your brand’s reputation as an acquirer that offers investors an engaging narrative.