Digital Solutions

In 2014 Gartner predicted that Information Technology Departments are undergoing a substantial shift in the way they work as well as the organizational setup. Separating IT into Ninja's and Samurai (or assassins and snails as others coined them), the underlying idea is simple: On one hand IT is rapidly commoditizing (computers, networks, software) and digital disruption forces the hand on the other (Uber, AirBnB, Netflix). Setting the necessary discussion aside that has followed that particular idea, the underlying principle has yielded important understandings for what constitutes  the digital map and what to do.

The digital map is three-fold. In order to avoid the recurring confusion of the respective areas, we look at Improving the Customer Experience (CX), Creating entirely different Business Models (Disruption), and Improving Corporate Performance by harnessing digital power to improve/digitize Business Processes and Operational Efficieny:

The following analysis may help you in understanding what your organization requires and what you need to do. 

Situation

Your peers talk constantly about 'digitization' or 'digitalization'. Your manager in charge of strategy tells you to better act now as the 'start-ups' will disrupt your business model. However, at the same time cost and yield pressure cry for attention, too...

Where to start and what is really required in terms of action?

 

Solution

Common Sense. As always. But, development in the area of 'new business models', 'disruptions', and 'platforms and smart services' are accelerating. Standing still and analysing thoroughly might not be enough and too slow.

Firstly, you need to understand your situation and the context of your organization: Are you producing retail goods, that your clients consume directly (B2C) or you have a company that helps you sell those products one way or the other (B2B2C)? In that case exploring new approaches and channels may shorten the distance and communication between you and the customer. In this case, improved customer experience (CX) may be the way to go.

Secondly, you may be in an industry or business segment that has been identified as being a target to digital disruption and the first platform players in your segment are emerging. You need to act fast!

Lastly, your existing business processes feel dysfunctional and slow. Companies around you analyse their business processes, start harnessing digital capabilities and power and start talking about becoming 'agile'. To at least not lose market share in your respective segment, or better, gain an upper hand in the respective process (e.g. create distinction from your competitors), you better act now.

In any case a fundamental paradigm shift in almost all companies is required: From Projects to Agile, from Budget to Fail Fast, from Business Unit to Multidisciplinary Team.

R&P is committed to Digitization and has helped clients embarking on an efficient track towards the new normal. We offer workshops to harness ideas already existing in the minds of your employees. We support headquarters in their digitization strategy, while at the same time help regional and local entities to create digital solutions addressing the unique markets. And finally, we offer concrete help in form of reengineered and re-purposed business processes made digital by means of app development and product owner support and/or staffing.

 

Benefit

Working with R&P will provide you with a sparring partner understanding the pressure on traditional business models, while extending a common sense approach to what's applicable to your organization and what's not. Agile, multidisciplinary teams and failing fast will no longer be abstract concepts but living things within your organization.