Is Digital Transformation Reengineering in Sheep’s Clothing?
Blog: Jim Sinur
There seems to be an awful lot of parallels between business reengineering, which focused on helping companies radially restructure their organizations by focusing on the ground-up design of their business models, and the way Digital Transformation is being touted by some. There are some “Chicken Little’s” out there saying the sky will fall in on you. There are some visible examples in some industries, but radical business model change won’t happen all at once in every industry simultaneously. On the other hand, nobody should ignore opportunities to leverage digital opportunities. This is a bit of a tightrope walk, but a necessary one with a safety line whenever possible
Industries Under Siege:
When your industry is being attacked by better business models that are digitally enabled, then you may forgo the safety line and play it a bit riskier. Make no mistake digital will influence most industries by providing a better customer experience that includes faster, better, cheaper with more visibility. However, rarely is it a situation that requires turn key solutions yesterday. Yes, digital will increase the pressure, but organizations do not have to get out of the business model they have successfully rode for years. They will, however, have to pick up the pace of change and innovation. Whenever possible industries under siege should be working with parallel solutions to keep the lights on while trying new ways of doing business (better customer journeys, dynamic value chains or new markets).
Most Everyone Else:
If your industry is not under siege, organizations should be taking steps to leverage digital in the best way possible to enhance and leverage the strength of your existing business model. If you are in the mortgage business, you better underwrite easily in the context of what the buyer complete journey might entail. You might start with a better data collection, but might end up guiding buyers and sellers through their whole experience, not just the loan process. Incrementally adding crucial and customer pleasing capabilities while being operationally effective and efficient on top a proven business model is a beautiful and profitable thing. If your organization is not working with several proven digital methods and technologies, there is lost opportunity. If your organization is not experimenting with a digital approach that could leap-frog themselves over the competition, there is also opportunity loss .
There are some who are hiding radical change under the cover of digital transformations, but it isn’t always necessary at the speed they demand. It’s in their best interest to scare you into working with them to guide your through the dangerous territory of digital. While it’s true there are dangers, risk can be lowered and incremental can work with digital. This is why there are many paths to the top of the mountain that can be taken one base camp at a time.