How to be succesful in digital transformation of your business
“Change the fundamentals and loose control” – that was the key message when Senior Managing Partner at Gartner and 1997 MBA alum, Peter Suhr, spoke to MBA alumni about digital transformation of companies. With a wealth of examples from international companies, Peter elaborated on the new eco systems and how companies can benefit from tapping into an ecosystem rather than building their own technology - or even in some cases own an ecosystem where other companies benefit from your platform or technology. Building business cases to foresee the outcome of digital investments is an old-fashioned model, companies must take a leap of faith, take risks and loose a degree of control because of the speed of technological development. Major investments in new capabilities are necessary to enable digital transformations, and Peter described companies that took dramatic steps to replace entire teams in order to benefit from new technology and find new avenues of growth and profit.
The key to developing your business today and to win at digital business is to understand that most likely, innovation will come from outside and will be a platform, service or product, your company can tap into an ecosystem. In other words, partnerships, even with competitors, will be key to leverage your position in the ecosystem because once your product, service or value is digital, it can be traded or fulfilled by the ecosystem partner – or controlled by the platforms. In other words, understand your place in the ecosystem to accelerate innovation and go to market quicker. Develop or use a robust platform. And finally, use a bimodal operating model. Those are the three critical elements to consider in digital transformations of your business.
With the encouragement to not be afraid and accept to loose control as part of the process, Peter Suhr finished off an inspirational and highly applicable talk to MBA alumni and students.