opened up and re-imagined in a way that put the
customer front and centre.
With Netflix as the streaming home of TV
blockbusters like Mad Men, Breaking Bad and
House of Cards, its CEO could appreciate the
power of a strong narrative. The digital
transformation narrative is continually evolving,
with twists and turns few of us can predict.
Major plot points like the Internet of Things,
augmented and virtual reality, AI and
automation, and Big Data analytics are all in
play. Furthermore, blockchain and
cryptocurrencies look set to reshape industries
such as banking, finance and insurance.
There is no hiding from digital
transformation. Companies that still silo digital
or lump it in as part of some innovation division
are missing the boat by a long way. These
companies are misunderstanding the fact that
digital by its very nature has the power to entirely
alter the core structure of an organisation,
whether that is through customer engagement
(via things like social media), operations (think
optimisation through data analysis), or business
model (moving from selling products to creating
platforms and networks for services).ARE YOU EVOLUTION READY?
Companies that want to leap ahead of the pack
when it comes to digital transformation have to
consider these seven areas:
Business model Are you selling a product
or a service? Are you creating value for
customers through a platform that allows
third-party services to grow and share
profit? Can you turn one-off products or
services into subscription-based models?
Operations Are you using all the
data available to your business to
improve and optimise systems and
processes? Can you implement AI
and automation to take care of lower-end
operational matters in order to free up your staff
to provide higher-end value to your customers?
Will a shift to IoT-enabled machines improve
safety and reliability in operations?Talent and skills Are you doing all you
can to attract digital-literate employees
who are passionate about embracing
transformation? Is the culture of your
company truly open to innovation and agile
modes of development?
Data Have you developed a data plan
that progresses from simple collection
and storage of data through to analysis
and output? Are you testing outcomes
against your data? Are you modelling
innovations such as potential new business
models against available data?
Measurement Are you measuring the
effects and outcomes of digital
initiatives, or clinging to outmoded KPI
measures that fail to tell the full story?
Are your metrics failing to capture the collateral
damage or benefit of digital transformation?
Are you measuring customer outcomes or are
you fixated on employee surveillance?
Security Digital does not come
without risk or cost. Are you
mitigating the risks that come with
digital transformation by continual
investment in cybersecurity measures?
Stakeholders Are you
communicating the importance of
digital transformation to stakeholders
such as the board and investors? If your
stakeholders are not informed and persuaded
by your digital transformation case, it will soon
flounder. Don’t rely on technology to sell itself.
Know your digital transformation story and
sell that narrative. Make your stakeholders
understand the value it will create for customers.
Hastings took a chance at Netflix by
relegating its DVD operation to the dustbin of
history. He killed his darlings, so to speak.
Businesses that want to leap ahead of the digital
curve need to think across business models,
operations and culture. You need to be ready
to invest, but also to divest. You need to look at
the full gamut of technology available to you,
empower your people, and aim to bring value
to customers in ways you may not have done
in the past. Businesses need to be where their
customers will be. Digital can help them get
there fast.2
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