Digitalisation can help businesses grow. All highest-performing businesses have fantastic core processes, but the entire organisation needs to be on board with digital. Is yours?
Fast-paced developments in technology are revolutionising the way businesses operate.
Thanks to these innovations, especially in the digital arena, it almost feels like a new market or a new company is emerging every day.
In fact, most chief executives believe that there will be more change in the next two to three years than there has been in the past half century.
Digital can help businesses to grow faster, lighten their balance sheets, build better customer relationships and create strong alliances that support development.
But the absolute key to it all is having the right business model.
One of the biggest challenges is remembering on a daily basis that that potential for change exists. Things that would have been impossible just a short time ago are now completely achievable. A bank that would have once needed half a billion dollars to get off the ground, say, can now start operations for a fraction of that cost.
And things move so fast that the competitors you face now are unlikely to be the ones you will face 12 months on. At the same time, sectors are converging and competitors can spring up from unlikely sources.
For example, banks today are not worried about other lenders – they are more concerned about technology companies encroaching on their territory.
But we also live in an uncertain world. And there is far more volatility and risk of market shocks – meaning that chief executives can no longer safely assume they know which markets to operate in and where they will find their new talent.
Customer behaviour is also changing. We now have much more choice – primarily driven by the availability of technology and a growing number of platforms on which to shop – and are more likely to switch allegiances.
Like Amazon, organisations need to define their core capability and invest in that.
The highest-performing businesses have fantastic core processes, but the entire organisation needs to be on board with digital. That calls for the right measures and incentives to make the digital strategy work.
Digital has enormous potential – which will only increase. But that potential can only be fulfilled if a business is ready and able to execute an effective digital plan.
Companies face a stark choice: allow their operating model to drive their business – or do nothing and allow that model to restrict their growth.
To find out more about how digital transformation will impact your organisation, contact us.