In previous editions of Ascent Look Out, the ‘Focus On’ section has examined Green IT, Open Innovation, Cloud Computing, the birth of the Social Organization and Business Mobility. In this 2016+ edition we explore why and how you should reinvent your business for the digital age.
Reinventing business in the digital age
Innovation has reached new heights on the corporate radar in recent years. After all, multiple revolutions are happening at the same time, reinforcing each another: accelerated multi-sided globalization in a world that is becoming flat, financiarization that augments business fluidity, sustainability constraints exacerbated by demographic upheavals and, above all, the digital revolution. How to reinvent business in the digital age? Studying innovation best practices with our customers, we have developed five golden rules:
Rule 1: Recognizing the pace of change
All too often, enterprises delay recognizing that they need to change. But the early warning signs of change are usually easy to spot, well before they become visible on the revenue curve. Companies must constantly question the status quo, rewarding curiosity and allowing room for experimentation and partnerships. In a nutshell: they should make innovation part of their cultural mindset.
Rule 2: Not just innovating, but reinventing business models
While incremental innovation is good, the greatest success comes from disruptive innovation – from total reinvention. Digital is disruptive. It changes everything. More importantly, digital opens up new opportunities for completely overhauling existing business models. Innovation is no longer just about looking for technological progress;
it’s about considering the possibilities it opens up.
Rule 3: Breaking long-held beliefs
As digital redefines the world, companies should not be afraid of rupturing long-held industry models. This requires an open mind. Companies that have created the open-minded approach that supports breaking the unquestioned mantra of their industry will succeed. We already see it today, but we’re just at the beginning.
Rule 4: Choosing the right positioning
Ultimately, digital transforms value chains and creates novel ecosystems. It’s therefore essential that companies understand how best to position their organizations in an ever-changing digital landscape. Two dimensions stand out: customer ownership in a world now moving from product centricity to customer centricity and ecosystem openness in an open world where ecosystem mastery is key.
Rule 5: Constantly adapting with analytics and Artificial Intelligence solutions
Digital has created a fully quantified, data-driven world where competitive positions change rapidly. The winners will be those who will succeed in turning this data into the intelligence that allows them to constantly adapt and reinvent their business models. Analytics, insight technologies and robotics will be among the core technologies that will make the difference.