Reconceiving your business to win in the digital age
Reconceiving your current business to win in the digital age puts you into the realm of digital transformation, which is a form of end-to-end, integrated business transformation where digital technologies play a dominant role. But where to start?
In order for leadership teams to move into the digital economy with confidence, they first need to see and feel that their current enterprises were not built to compete in this new environment, where the digital and physical world are blended seamlessly. Moreover, they need to fully understand the dynamics of the digital economy, and know what is happening out there in the business environment.
Facing the four realities of the digital economy
According to the Ex-Co-Nomy framework, there are four realities of the digital economy that each imply a consequent capability, providing the foundation for re-imagining your business for a digital world.
1. Experience is value
Taking on an outside-in perspective, instead of the traditional inside-out perspective, is crucial. When designing your value proposition, take on customer-centric perspective, while instead of the company-centric product perspective.
Leverage modern design-thinking practices, rooted in empathic collaborative and iterative customer experience design.
2. Customers are moving targets
Customer attention and brand loyalty are hyper ephemeral. So do not just assume, but test your value propositions on a continuous basis.
Leverage data science practices rooted in systematic big data and technology-savvy business experimentation.
3. Ecosystems co-create value
No single organisation owns all of the data, skills or capabilities to compete for today’s dynamic customer. Form alliances, bring partners to the table and grow the pie by competing together.
Leverage multi-partner business models that go way beyond supplier relationships and cost-driven outsourcing.
4. Ecosystem platforms boost value creation
Your innovation capability depends on how effective you are at combining your digital assets with those of others.
Leverage modern open enterprise and cloud architecture practices, allowing creative Lego block innovation.
5 key elements of successful digital transformation
1/ The time to act on the realities of the Ex-Co-Nomy is now
Digital transformation is not about the next new technology. It is about facing the four new realities and acting accordingly.
2/ Ground your business transformation in a winning business vision
New technologies offer a wide range of business opportunities. However, do not start the transformation before articulating a clear business vision on how to focus the transformation. The executive leadership team should act as a “band of brothers” who spreads out that vision throughout the organisation, and drives the transformation effort.
3/ Take an enterprise-wide approach to transformation
Do not simply approach the transformation from afunctional angle, and avoid a silo mentality. True transformation is enterprise-wide and holistic in nature. Again, a band of brothers is needed at the top of the enterprise to drive this change.
4/ Technology is not ‘just’ technology
Technology is an enabler of digital transformation, but its role is not that. In order to keep up with the movements in the technology space, it is key to both have the people and the knowledge in-house. In accordance with the four realities of the digital age, the customer is a moving target. However, technologies should be considered as moving targets as well: organisations which are not in synch with what is moving on this level will either remain stuck in second gear, or will bet on the wrong technologies.
5/ This revolution is about culture
Digital transformation is not simply about redefining an organisational culture. It is about human nature and about a redefinition of the relationship between robots and humanity. Finally, we should not neglect the many ethical and societal issues tied to this discussion.
Want to learn more on how to achieve a successful digital transformation? Watch the webinar by professor Stijn Viaene on ‘Digital Transformation: Enabling success’.