(Originally published elsewhere in 2019) This post follows on from my previous post on Digital Transformation opportunities and themes, this time focusing on the theme Digital Enterprise and how innovation affects and influences business models, innovation and staff skills needed to succeed in the transformation.
The DTI assessment[1] from May 2018 noted that the following are key themes that have emerged from the analysis of digital transformation across 13 industries (health, retail, professional services amongst others):
- Maximizing return on digital - discussed in a prior post
- Digital Consumption - discussed in a prior post
- Digital Enterprise - discussed in this post
- Platform Economy
- Societal Implications
- Unlocking Digital Value to Society
Digital Enterprise
Innovation and disruption are key to successful transformation into a digital enterprise:
-
Business Models.
Business models must consider distribution channels, customer segments (either existing or new), value proposition and even the Key Assets which could all be driven from new technology enablers. Cost could be impacted through platform, new technology adoption to provide streamlined or new capabilities into value stream stages.. disruption!
The DTI summary notes that Business Models may be able to choose from one of these options to deliver and realise the promise of digital:
- Build - If there is time and capability to do so
- Buy - when wanting to own the market, open new markets or when internal capability is not mature enough
- Partner - thus leveraging the strengths of partners, including any of their key assets, channels or gaining access to their customer segments
- Invest - Invest in R&D, in key resources development or even in intrapreneurial initiatives within the organisation
- Incubate - invest in and incubate a separate or sub entity and apply startup/lean methods to iterate
-
Operating Models.
Delivering value requires an agile business operating model, in both core and supporting capabilities. Lean, DevOps and Agile methodologies and practices are being adopted in many business units, even those I work with now to reduce waste and increase business agility.
The DTI summary notes the operating models vary amongst 5 key types, likely needing a post on its own. Of these models, the customer-centric operating model focussed on a decentralised organisation focusing on the frontline processes to be customer obsessed is crucial and likely the most obvious depending on the business’ target client base. A frugal operating model using less and with constrained resources and funding is also important to deliver more without undue fixed expense or waste. Lastly I like the Open and Liquid operating model, centered around platforms for the ‘sharing customer’, access based models. The other 2 models noted is (a) Data-powered with a focus on analytics, and (b) skynet with a focus on manufacturing.
-
Digital skills.
Digital skills of staff and digital leadership are both crucial to delivering in a transformational environment.
DTI also suggests new metrics to monitor as part of key performance indicators. These include number of users, growth in registrations but also monthly active users, conversion rates and abandonment rates. Engagement is also key, with factors such as time on site, time on specific content, contribution metrics and of course customer satisfaction indexes.
These are exciting facets of the Digital Enterprise, and I am excited by this knowledge of innovation, strategy and planning around business models and being able to continue to architect business aligned technology enablement and solutions to improve and enable digital transformation.
[1] http://reports.weforum.org/digital-transformation/
Originally published elsewhere on 31 March, 2019.
24+ years experience in solving business problems and maximising opportunities through technology in a variety of industries, public and private sector internationally. I founded architectFWD™ to provide knowledge and trusted advice in the areas of strategy, technology, cloud and digital to enable organisations to become Digital Leaders.