An Enterprise that wants to win in this “idea economy” has to consider two important paradigms:
- There is a quick path to digital obsolescence. Avoid that shortcut.
2. Digital Transformation is all about a fundamental, yet radical change in business models, processes, people and systems in order to maximize your Return on Invested Capital. The more minimized your asset base, the better off you get.
Companies, irrespective of size have not realized the potential value of Digital Transformation and innovation and have only leveraged it in bursts. Such incremental effort will not result in breakthrough results. If they do not adapt and leverage the true power of digital technologies, and apply it to the core of their business, they will become irrelevant.
While it’s easy to get distracted by the technology itself, it’s application ramification lead to a sort of cognitive dissonance. I recommend an in-depth understanding of these technologies and the “how of execution” to ultimately deliver a breakthrough business result. A smart power grid may utilize 30,000 sensors, but what’s the point if only 1 percent of the data extracted is really used.
This is an important consideration if enterprises want to succeed. Most traditional companies that have embarked on any sort of digital transformation journeys want to behave like start-ups, but they usually don’t have the necessary operating models or the infrastructure to keep up with companies that are digital right from their inception. As part of their digital journeys, they continue increasing complexity in their application and infrastructure landscape without a clear roadmap of “how” an ideal deployment should happen. Get a strong and clear start by empowering your Enterprise Architecture (EA) groups to create a common framework and standards that, enable a seamless integration and composition of your digital-legacy landscape.
As we evolve and make a mark in this connected world, creating value at new frontiers is paramount and for that one has to unlock value from emerging growth sectors. To win in your business with digital, requires responsiveness to strategic opportunities with a customer-centric mindset. Measurement of financial metrics has to be embedded deep in the viability aspect when defining efforts around a digital transformation program. Create financial models, or leverage your partners, who might have already ready frameworks to meet your business KPIs early on, else these programs have no meaning.
I offer as an example some fascinating thoughts that we put together at Hewlett Packard Enterprise for your interest in this topic.
Learn more in the Digital Transformation Viewpoint Paper.