It’s easy to view the current crisis as a catalyst for change. Lying beneath the surface are signals that major change is required, and when crisis emerges, hope for that change emerges with it. In most cases however, that change never materializes. The last two months have brought countless predictions of what is to come. While we need to consider the low percentage of successful post-crisis predictions in the past, two trends look likely to materialize: accelerated digital transformation, and a rapid path to automation.
Agility is the capacity to detect, assess, and respond to environmental changes in ways that are purposeful, decisive, and grounded in the will to win
A recent Article describes how Target transformed from a Retailer with stores in disrepair and leaders that struggled to adapt to changing consumer behavior, to a company that is thriving. Their first quarter results for 2019 beat analysts’ expectations, the store’s private-label lines are exploding, and the stock price is trading at an all-time high.
Target CEO Brian Cornel made a huge announcement in March of 2017 that it planned to invest over $7 billion in a turnaround strategy – Wall Street was not impressed, as Target suffered its largest stock plunge in almost a decade on the day of the announcement. But Mr. Cornel took a page out of Jeff Bezos book and pushed forward on a plan that included:
I recently authored an article on ecosystems and digital transformation along with leading platform strategist Simon Torrance. Here is a brief abstract of the article. You can read it Here on the TCS website – along with other perspectives on digital transformation.
As Frank Diana and Simon Torrance explain in “Defining Your Digital Ecosystem: The First Step in a Machine First™ Transformation,” many leaders are no longer looking at strategy and industry structure in the ways of a non-digital world. Instead, they’re analyzing how emerging ecosystems—networks of stakeholders, including business partners, suppliers, customers, and competitors that interact digitally to create value are supplanting traditional industries as the organizing construct. For example, in a mobility ecosystem, automakers no longer just make cars; they must redefine the very notion of automobile ownership and how people get around.
Colleague and fellow Futurist Simon Torrance has developed a new online course titled: The New Growth Playbook. It provides new research and course content focused on business model transformation for the digital economy. You can access this new online course for senior executives Here.
It’s based on new in-depth analysis of the business model performance of over 500 leading companies, and provides an holistic approach for moving the valuation needle, particularly for incumbent organisations.
Special offer for my network: 20% discount if you book using this link. There’s also a free sample video case study here: How Amazon creates new growth flywheels. The course is getting some great feedback already, so pass the details along to others. Some early feedback is highlighted below:
- “Brilliant analysis.” Senior Partner, Global Management Consultancy
- “I recommend this course to all leaders.” Digital Director, Global Bank
- “Simon is at the forefront of digital trends.” Group Chief Strategy Officer, Global Telco
- “Simon is one of a very small number of senior consultants who truly understands platform-based business models and how traditional enterprises can successfully incorporate them” Senior Director, European Media Company
- “Simon is a thought leader extraordinaire!” Director of Leadership, Global Training Company
- “Simon adds a lot of value” CEO, Global Packaging Company
More at: http://www.newgrowthplaybook.com
To transform is to change in form, appearance, structure, condition, nature, or character. It is an overly used word that can be made to fit several narratives. Yet, given its definition, the dynamics of what is sure to be a volatile and complex future should compel us all to transform. I believe however, that the narrative must change. This is not a technology discussion, and it is not a digital discussion (although digital is the reason we are here). Rather, it is discussion of likely structural shifts that alter our beliefs and intuitions. These shifts will fundamentally change the way we think about organizations.
Digital transformation means different things to different people. As I strive to change mindsets, I am sensitive to these distinct perspectives and the individual filters applied to terms like digital and transformation. In my view, Digital has been more narrow than holistic, while in some organizations ERP implementations are considered transformation. So, does digital transformation represent the narrow use of digital technology to improve some aspect of our organization? Or, is it the wholesale change of a set of structures, institutions and paradigms built for a different era? Although I have mostly abandoned the phrase, when I do use it, I mean the latter.
Let’s call it what it is, starting with the term transformation. To truly transform means to change from one nature, substance, form, or condition into another. I’d maintain that the pace of change has made the archaic nature of our industrial era structures, institutions, and management paradigms very apparent. Therefore, to transform in this sense means to change from the nature, form and substance of our industrial past, to a state that is viable for our digital future. Digital is foundational: the building block for which this future state is built upon. Therefore, for clarity sake, a better way to describe digital transformation is:
TRANSFORMATION FOR THE DIGITAL AGE: a change in the nature, substance, and form of our industrial past, to a future state that allows us to thrive in our emerging digital future.