Digital Organization
For a company to be digital, it needs to rethink its business strategy, organization Model and culture. As we observe in the market, digital disruption is happening in many industries. Who would have thought of Uber as a FedEx competitor? However, Uber now plans to deliver parcels, and they are undoubtedly a huge disruptor.
Organizations that do not begin at that moment will continue to experience disruption. Once your company strategy has been reformulated in the context of the digital era, you can begin to develop the organizational model, culture, and competencies necessary to not just survive, but also become a digital disruptor.
Successful digital businesses need the following capabilities:
Extreme customer centricity
Every product and procedure must be assessed via the customer’s perspective. Customers may engage with your goods and systems from anywhere, including mobile, the Internet, and your contact center. Customers may connect via one channel and then continue their transaction via another. They still want you to fully understand them and adapt their trip based on real-time context.
Thinking big, scaling incrementally.
Today, a company may begin operations and rapidly expand to become a worldwide enterprise. Many old hurdles to being internationally competitive have been eliminated. This requires major, multinational organizations founded during a time when those obstacles were significant to retool themselves as nimble competitors. This necessitates a new “digitized” operational model designed to adapt to specific consumer experiences.
Data Empowerment: You can access whatever data you need. You may now capture data not just online at every point of engagement, but also from real experiences using IoT. Sensor-equipped objects and robots, for example, have the potential to give previously inaccessible data. A supply chain management may see where their inventory or completed items are moving, how long it takes to deliver, if they are optimizing the best routes, and react to new information in real time. At Wipro Digital, we understand how machine-generated data can fuel new ways of working and provide our customers a competitive edge.
So, what does it take to become digital? Organizations must return to their basic business strategies and integrate them with “Digital DNA.” It may seem intimidating to implement such significant change, however Digital DNA can be generated.
Three tenets describe the DNA of a digital business:
Agility
You must be nimble. Customers want increased response, therefore firms must be quick, agile, and collaborative. Silos cannot exist in digital, thus you must be able to make rapid judgments, operate in small groups, and collaborate. Marketing, sales, and R&D must collaborate in order to react to clients quickly. Organizations must also reconsider inflexible rules and procedures that were developed years ago to industrialize and standardize processes.
External Orientation.
Organizations that are more externally oriented are in great demand. There is a lot of innovation outside the enterprise, and if you can’t tap into it and these different ways of thinking, your company will go extinct.
Risk Taking
Be willing to take measured chances and enjoy experimenting. You do not need to spend billions of dollars to find out whether it will succeed. In the digital era, you may experiment. For example, Google can launch a new product in beta to a micro-segment, collect feedback and data, and determine what works and what doesn’t in order to refine and improve the product. Following this, they will be able to fully launch and be more confident in their investment and outcome.
For some larger, traditional businesses, this type of ground-level change may appear intimidating or simply impossible. But there are three paths larger organizations can take to transition:
The first option is to form small subsidiaries and incubate them outside of the current structure. Walmart, for example, established laboratories in the Bay Area rather than at its headquarters in Arkansas.
A second approach to swiftly scale up digital is to buy start-ups and bring Digital DNA in-house fast. BBVA purchased the Internet bank company Simple for $117 million and that improved their digital capacity very swiftly.
Finally, the third way is to organically grow inside an existing organizational structure but give flexibility to act differently.
Different sorts of organizations and enterprises will evolve differently. Some enterprises and industries are getting disrupted faster than others.
The less regulated and more consumer oriented the sector is, the less time it will have to convert to a digital ready company before its disrupted. On the other hand, highly regulated industries, such as pharmaceuticals and healthcare may have a little more time to make the shift. Certain areas in banking could also take two to three years before they can get truly disrupted but certain products that are less regulated are already getting disrupted by new fintech players. If you look at it through a 2 x 2 matrix – how regulated versus how consumer facing the industry is you get an idea of the amount of headroom available before one must complete their digital transition.