Transformation

Operating Models will Change

Frank Diana Systems of Engagement , , , , , , ,

The stars are aligning in a way that promises to drive change to long standing operating models. Why? The Venture community speaks of forcing functions that drive adoption of new innovation. Let’s analyze the forcing functions that likely drive change to industrial age processes and organizational structures:

  • Consumerization
  • The far reaching implications of Mobile, Social, Cloud, and Big Data convergence
  • The blurring boundaries  between personal and business computing, industries, and enterprise functions
  • The emergence of the engagement era and the associated adoption of systems of engagement
  • Hitting the efficiency wall

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The Value Ecosystem: A Telco Example

Frank Diana Systems of Engagement , , , , ,

In our transformational march towards the Digital Enterprise – the Value Ecosystem grows in importance. Fueled by the increasing importance of relationships to value propositions, the Digital Enterprise adds relationship management to its list of critical core competencies. This point was underscored at a Telecommunication Innovation Forum held by TCS in London last week. Perhaps no industry finds itself in the same place as this industry – both an enabler and victim of the digital world. As expressed by Keith Willetts, Chairman of TM Forum, this is truly a digital paradox. TM Forum is a global, non-profit industry association focused on enabling service provider agility and innovation. At the TCS event, Mr. Willetts described the various challenges faced by companies in this Industry:

  • Extreme  pressure on cost management and exploiting  economies of scale
  • IP networks dramatically reduce the barriers to entry for services, so core voice and messaging services are under attack
  • The phone number does not equal the customer, and therefore brand loyalty is shifting

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From an Extended Enterprise to a Digital Enterprise

Frank Diana Digital Foundation , , , , ,

I find myself reflecting on a common phrase as I watch the digital enterprise unfold: “history is repeating itself”. So much of what is happening today, feels like a second and more attainable version of what was happening about eleven years ago. Back then, I remember developing a framework for the extended enterprise – a popular way to describe the inclusion of other value chain members in end-to-end business process. The Internet was going to change the game by providing the infrastructure required to extend a company’s inward-focused business processes to the value chain. It was to become the catalyst for value chain optimization.

I thought back then about the delivery of innovative product and services comprised of differentiated internal services and value-added external services. The Enterprise would in effect be a functional specialist within their value chain, focused on connecting with partners to gain access to information and services. There would be a divestment of assets, as companies focused on their core competency, making external optimization, synchronization and integration critical success factors. Companies would realize that the ability to adapt to market change was inversely proportional to investment in fixed assets.

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