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The definition of "digital business" is a lot broader than you may think. "It's not just about technology companies and start-ups anymore," said Michael J. Biltz, an executive at Accenture, a firm specializing in consulting, technology services and outsourcing. "Every company is a technology company at its core and in the process of converting to a digital business."

Think of a company that's looking for new ways to weave social, mobile, analytics and cloud technologies into its next generation business strategy — and don't stop at Google. Instead, consider how almost every business of any size — from multinational conglomerates like General Electric to fledgling neighborhood retailers and restaurants — are reimagining themselves, exploring opportunities and embracing the digital wave.

And while businesses differ in size and scope, they share common goals. As Andy Markowitz, director of Global Digital Strategy at GE, noted: "The objective of our role, from a global perspective, is to help our businesses — no matter where they are and what they do — connect with our customers or sell more product."

Can you afford to sit on the sidelines? Not if you believe Biltz — director of Accenture Technology Vision and co-author of the Accenture Technology Vision 2014 report, the firm's annual take on the future of technology and how it will affect businesses in the next three to five years. He thinks mastery of digital technologies is an essential core competency for any successful business.

Yes, Size Matters

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Innovation is growing … from the makeshift offices of technology-focused start-ups to the siloed halls of the world's largest corporations.

The days when the new things on the block — Instagram, Twitter, Zipcar, YouTube, TripAdvisor and Airbnb — were the market disrupters and grew faster than their larger, more established competitors may be coming to an end, Biltz told CMSwire.

Now "big is the next big thing." Large, traditional companies are embracing the transformational — make that disruptive — ideas that emerging technologies provide to become digital giants.

"One of the biggest trends in play is the way the GE's of the world are using their resources, scale and process discipline to reinvent themselves through digital transformation. It's enabling them to reassert leadership in their markets and rewrite much of the digital playbook," he explained.

GE is betting on the industrial Internet. By building cloud-based services with intelligent analytics, the company can collect and combine vast amounts of industrial-machine and equipment data, extracting unique insights that it can use to set new performance standards in major industries such as energy and aviation, the report explains. It further notes:

"Enterprises are embracing technology in the way they do business and also as a catalyst to create something new—new markets, new products, and new areas of growth and revenues. The change is revolutionary. Industrial companies are becoming customer service companies. Consumer products companies are becoming Internet companies. Energy companies are becoming information companies. And media and entertainment companies are becoming logistics companies."

Benefits and Risks

Biltz noted that industrial powerhouses like GE, Disney, P&G, Tesco, Walmart and Shell have learned by doing, steadily gaining the skills and the competencies to pull ahead of their competitors, blunting the startups’ advantages and proving to their stakeholders that they have what it takes to excel in the new digital economy.

But it is more than a way to appease investors. The report states:

They are acutely aware that digital expertise can confer exceptional strategic advantage. They realize that not only can they control their own markets, but they can actually disrupt and establish footholds in others, often creating new business and market models in the process."