This chapter assesses the question of whether digital transformation really is required for a business to survive. While many have seen wild success from being digitally driven, undergoing such a major transformation poses major risks. 

Perhaps if your business is healthy, growing steadily, nicely profitable, and not threatened in any significant way by “digital” competition or changing customer need, then digital transformation just isn't worth it. But this describes just a small sliver of companies operating today, as at this point digital has left nearly no industry untouched. Waves of disruptive digital change started in the travel and financial services industries in the late ‘90s, then hit the retail and media segments after that.

Today, even industries as slow-moving as industrial manufacturing, higher education, and hospital operations require an increasing degree of digital centricity in order to be competitive. After offering some examples of disruption coming to industries that least expected it, Howard lays out the 3 major reasons that a business must transform: remaining relevant to the customer, gaining the efficiencies needed to be cost-competitive, and attracting and retaining talent. To support these 3 reasons, Howard offers some cold, hard numbers that make the case for transformation so clearly that no boardroom could ignore them.