- Does the business need to be digitally transformed?
- Are we comfortable with disruptive technology?
- Is the organisation, especially the CEO, ready for change?
1.Does the business need to be digitally transformed?
Organisations should be able to articulate their digital needs in the vernacular of business goals and not as a latest fad.
Nestle says that “… The core of value creation comes from product, service and business model innovation… Digital innovation presents us with further opportunities for competitive advantage in developing more personalised experiences and new delivery methods”.
Here is an organisation traded publicly since 1873 clearly articulating the need for Digital innovation.
2. Are we comfortable with disruptive technology?
Businesses have to be prepared for disruptive technology, often from start-ups, and will need to respond in real-time to these changes.
Waiter.com, started in 1994, is considered the first online restaurant delivery service on the web. Now there are many players ranging from the global (www.ubereats.com), to the regional (www.swiggy.com). These players are leveraging smart phone based apps, modern mobile networks and complex linked payment systems managing hundreds of restaurants, thousands of drivers and millions of deliveries a year. They make technology tweaks and updates, often multiple times on a daily basis, to retain their competitive edge.
Here is a relatively new industry where the method of food preparation (e.g. Pizzas) has probably changed only marginally in the last few years. However, the end-consumer now uses multiple food delivery apps.
A disgruntled customer with a flick of a finger can consign you to the dustbin of their eating history!
A disgruntled customer with a flick of a finger can consign you to the dustbin of their eating history!
3. Is the organisation, especially the CEO, ready for change?
Long Successful businesses are most susceptible to attack and need to be open-minded for radical and rapid change.
Ikea saw the disruptions to its traditional retail business from on-line competitors. CEO Jesper Brodin says ” …It’s about the mindset: we are not going to have 10 years to gradually change and plan… next three years will be exceptional when it comes to change, entrepreneurship, test and try and exploring new ways forward …”
Here is an organisation founded in 1943, ultimately controlled by a family foundation, with a professional CEO urging the need for change.
Summary
Businesses, old and new, have to scan constantly the environment for technological changes. Festina lente! If they are able to articulate a clear business value with a top driven commitment for change, then “Go for it”!
