5 Key Enablers of Digital Transformation
Agile Organizations, Business Model Innovations, Consumer Centricity, Data Driven, and Exponential bets are key enablers of digital transformation.
In the “How to build your digital transformation strategy?“, we looked at the key enablers of digital transformation. Culture, Capability, and Canvas is a broader way to categorize them.
If you double-click into key enablers of the digital transformation, it boils down to ABCDE – Agile Organizations, Business Model Innovations, Consumer Centricity, Data Driven, and Exponential bets. ABCDE of Digital Transformation Playbook ~ @DigitallyMani®
Agile Organizations drive speed and nimbleness in the organizational model, operating model, and business outcomes. These are best suited for creating new innovations. It is about instilling deep-rooted, purpose-driven, and passionate co-founders who can incubate and build ideas using lean startup principles. The culture everything from simple policies and procedures to innovation accounting and funding helps these co-founders thrive. Leaders are effective product managers or visionaries who set break barriers and set a The culture celebrates speed and failures, pivots/perseveres/kills ideas all backed by data and insights.
BUSINESS MODEL INNOVATION
Business Model Innovation is about how companies rethink the way they make money. It is different for different businesses. At the heart of it it is about leveraging digital to expand your core or rethink the entire business model. Traditional concepts like horizontal and vertical integration of businesses is seeing a digital resurgence. Intelligence, Social Mobile, Analytics, Internet of Things (IoT), and Cloud also known as ISMAIC technologies have created new possibilities to create more efficient businesses that can create brand new offerings, or breakout into adjacent areas.
Consumer is the new CEO goes the saying. There are two ways to look at it – 1) Ask and understand consumer pain points and build solutions that work for them. The pitfall to watch is a company’s inability to envision a new future. (or) 2) Show Consumer a new possibility that 10x times superior to what they have today. It requires deep understanding of pain points and coupling that with digital solutions to bring new possibilities to life.
Both require changing the way you work with consumer. Instead of a grand unveil, companies need to create solutions with iteration, speed, and constant improvements. Most companies use design thinking to build empathy, apply learn startup principles and small scale tests to test ideas, iterate improvements, pivot, persevere, or kill as appropriate. These companies continue to harness data and make data-driven decisions.
DATA AS A DIFFERENTIATOR
Data and Insights is about how the business uses it as a differentiator. Digitally savvy organizations start by harnessing all the data in one place. You can generate insights and make them accessible to teams at the click of a button. Data and Insights enable you to make informed decisions and allow you build individualized solutions for your consumers.
Exponential Bets is about the creating an ecosystem by bringing together a community of products, people, services, and other interplays. Drones, Robots, Genome Sequencing, Artificial Intelligence (AI), or others – you name a buzzword it could mean different things for different businesses. It is about looking around the horizons to figure out the best investments. Companies that have succeeded have unlocked platforms that allow value creation at scale. One thing that is common to all these are Platform driven thinking. Digitally savvy organizations, make those exponential bets and spawn creation of platform ecosystems
A company’s ability to create agile organizations, foster business model innovation, be consumer centric, lead with data, and place exponential bets will help it become more digitally savvy.