How do you transform the vision you have into a digital transformation?
Successful business models do not last forever. Sometimes, the creation of new value requires you to venture into the unchartered territory of new business models.
Business opportunities or competitive threats can be the catalyst for such change. Digital Masters are not paranoid. But they do assume that competitors, and new entrants, may use the potential of digital technologies to go after their business.
Where should you focus your digital vision?
Digital visions usually take one of three perspectives: Reenvisioning the customers experience, reenvisioning operational process, or combining the previous two approaches to reenvision business models. The approach you take should reflect your organizations capabilities, your customers’ needs and the nature of competition in your industry.
There is no single best way and it is not always simple.
You need to craft a vision that builds on your strengths, engages employees, and can evolve over time.
You´ll need to identify the benefits you want, what the end point looks like, and how you will engage your customers, employers and investors.
Here are some steps to take:
Identifying strategic assets
In crafting your digital vision - You need to identify strategic assets that will help you win.
Always start looking what kind of assets you have. Competence assets, products design, flexibility and efficient operations. Intangible assets, such as brand, reputation and company culture. Remember data assets can provide you and analytic advantage over your competitors. Or even become products you can sell to others. When you have identified these potential strategic assets you need to assess whether those assets will remain strategic in the new world. Make sure to look at the assets that are valuable, rare and hard to copy.
Creating transformative Ambitions
But having a visions is not good enough it has to be transformative. Your digital aspiration can be divided into three categories: Substitution, extension and transformation
Substitution is the use of new technology as alternative or replacement
Extensions significantly improves the performances or functionality of a product or process. Without radically changing it.
Transformation is the fundamental redefinition of a process or a product through technology. Example: when going from manually working processes to automatic factories, changing the nature of the process. With that comes delivering higher levels of efficiency, quality and environmental sustainability.
Defining a clear intent and outcome:
If you want people to engage with a vision, you need to make it real for them. Tell them what the effects of it will be once the visions is realized, how the people will know they archived the vision, why they should care etc.
Great digital visions include both intent and outcome. Intent is a picture of what needs to be changed and outcome is measurable to the company, its customers, or its employees. Together, intent and outcome help employees visualize the future of the organization and help motivate them to start realizing the outcome.
Example: As CEO or manager you can clearly state you intent, to move beyond thick paper directions, give examples of new digital services or products, that the company could provide, in combination with a concreate outcome: the company will earn 65% of its revenues from digital services within five years. This combination of intent and outcome gives everyone in the organization a clear set of guidelines to envision new ways of working.
Evolving the vision over time
If you make a compelling vision and help employees believe in it, then the broader organization can fill in the details aim to make your digital vision specific enough to give employees a clear direction, while giving them flexibility to innovate and build on it.
I will give you a short Checklist for Digital Vision
Familiarize yourself with the new digital practices that can be an opportunity or a threat to your business or industry
Identify bottlenecks or headaches in your business and in your customers - that resulted from the limits of old technologies, and consider how you might resolve these problems digitally
Consider which of your strategic assets will remain valuable in the digital area
Designing, experimenting, and implementing new business models is a task for top business leaders. It is a strategic activity. Functional heads will not have sufficient authority to drive new business model experimentation across business silos. The implementation of a new model requires vision, leadership, and governance. If the new model is ultimately designed to replace the old, you need to know when to shift resources and at what rate.
Checklist for Business
Constantly challenge your business model with your top team
Monitor the symptoms that drive business model change in your industry
Consider how you might transform your industry before others do
Consider whether it is time to replace products and services with newer versions if your present offerings are under digital threats
Consider creating brand- new digital businesses using your core skills and assets
Consider reconfiguring your delivery model by connecting your products, services, and data in innovative ways to create extra value
Consider reinforcing your presence in your current market by rethinking your value proposition to meet new needs
Experiment and iterate your new business model ideas