Considered only a few years ago as a distinct strategic initiative for the innovative enterprise, Digital is today a de-facto program for all. In fact, digital has emerged in recent months as the top priority for all organisations. As customers demand well-adapted and more-personalized experience at every interaction point, executives are quickly repositioning Digital Initiatives from the innovation backlog to the growth imperative.
Whilst Digitalizing is increasingly recognized as the direct response to customer preferences, the depth of the Digital Imperative is much less understood.
The Digital Economy
The increasing use of technology across the organisation is only a symptom of the more profound shift in transactions economics.
Economists recognize that Digitalization explicitly changes economic rules governing exchanges. The internet for example continues to open the marketplace at a faster pace. This presents greater customer choice, hence influencing the basic economic concept of “supply and demand”.
Beyond mere technology pervasiveness, Digital has in fact been emerging as the 4th economy, since the invention of computing in the 1970s. The significance of Digital as the new economy cannot be overstated. The implications are wide raging for every organisation and across all industries. The business model underpinning the relevance of the organisation is challenged by fast changing transaction rules. Every organisation must adapt to these changing market conditions and adjust their capabilities to survive and grow in the digitalizing market.
Digital is the New Core Business
The transition to the Digital Economy presents both opportunities and challenges for the Enterprise. Most organisations continue to play the “Digital catch-up game” with individual siloed projects; and will continue to suffer the Digital set-back and challenges. Such struggles are evidence by market share and revenue decline. Beyond tactical initiatives, exploiting Digital Opportunities requires well-orchestrated swift adjustments to the organisation deep-rooted Management Model, Business Model and Operating model.
The Digital Customer has a growing portfolio of options and alternatives at his fingertips, from the comfort of his always-on mobile device. As such, the Digital Enterprise is continuously invested in “Digital Sensing and Analyzing and Adapting” to be the first respondent to the Digital Customer personalized and shifting requirements. Success and Growth in Digital requires the Enterprise continuously adapt with “Digital Sensing, Analyzing and Adapting” as the new business.
Traditionally a once in a Decade program, Transformation should become a continuous core Business function in the Digital Economy. Is your organization equipped with the required Digital Survival Competencies? How mature are your “Digital Sensing, Analyzing and Adapting Capabilities?