Disruptive Strategy For Digital Transformation
The role of Strategy For Digital Transformation has changed from being a business enabler to one that is a key business function driving innovation and disruption. The infographic below shows that this has resulted in a growing number of digital unicorns. These companies are racing to reach the $ 1 billion valuations.
What is the secret to success in digital transformation?
ISVs, product managers, and startups aspirants would all love to be able to answer these questions so they can disrupt. ISVs and product managers can use these principles to create disruption and innovate, even though there isn’t one.
Go beyond the immediate needs of customers.
One of the most important lessons to be learned from the success of disruptors and innovators who are driven by a Massively Transformational Purpose is not to limit yourself and think beyond the immediate needs of customers. In an age of connected products and services, product managers need to transform into business models managers.
This implies a completely new way of looking at how products, solutions, and services are created and constructed. Instead of being limited to by-products and customers, the focus should shift to:
#Operation that goes beyond organizations
#Technologies and Platforms
Data in this context is the core intelligence, connecting thread that enables everything else too (r).
Product managers need to realize that highly optimized solutions eventually become repetitive models. Simulation and automation have dramatically reduced the time required to develop and launch new model designs. A digital differentiator will be someone who makes efficient use of technology, not just a digital enabler.
Managing disruptions through business model innovation
While it is important that disruption is led, it is equally important to withstand it. You must also be aware and prepared to respond to disruptions. There are many digital unicorns that disrupt the markets. But how can established businesses innovate and survive disruption? many traditional businesses have survived disruptions thanks to a strategy that sticks to the core and expands on the edges.
Let disruptive thinking be part of your culture
You must fundamentally change your approach to a product/service in a specific domain to be disruptive. This is the only way to generate new business models. The culture of disruptive thinking must be one that is:
- Thinking about higher-order problems is more valuable than immediate pain points.
- Intense solutions (or disruptive innovation) are more valuable than incremental solutions.
- Agile execution and the ability of continuous innovation are integral parts of the culture
While digital unicorns begin with technology as their edge they are more likely to succeed if they have established networks. With careful analysis of data, leaders can make a shift towards low asset operating models. Technology can be used as a tool to create an ecosystem that will lower overall costs and increase value. It will also drive competition and allow customers to participate in the new ecosystem. These are just a few examples of self-disruption from market leaders.
Think about the entire business ecosystem and not just the current markets
A business leader must seek to capture more markets and not just more customers. He or she should also build new lines of products or new versions. The goal is to change the rules or create a new one that allows for fundamental disruption at scale. Not only digital unicorns or start-ups can disrupt. All businesses that aim to create exponentially more value through disruptive innovations will benefit tremendously from these disruptions.
- Design Thinking can be embraced and used to expand beyond the core of your organization.
- Develop networks with disruptive thinking as a part of your culture
- You must fundamentally change your approach to a product/service in a specific domain in order to be disruptive. This is the only way to generate new business models. The culture of disruptive thinking must be one that is:
- Higher-order problem statements are more valuable than immediate pain points.
- Attract customers and competitors to your network.
These tools, including business model canvas, business strategy maps, and business ecosystem mapping, are great ways to see the big picture and identify opportunities. Businesses are not able to exist on their own, they thrive in a network. The more you explore, the more opportunities there are to create value and deliver it.
Investments in technology should not be limited to operational efficiency. They must also take into account future-proofing and the ability to lead the business.
- You can create delightful experiences with new paradigms like gamification, personalization, and localization that will increase stickiness to your core product. This can increase the business value of your platform, allow the acquisition of new members to the network, and help you to be the market leader.
- Make use of intelligent technologies such as AI/ML to harness data, create predictive business models, or decision support systems to help you make differentiated and disruptive products.
- Partnerships are essential for achieving a variety of skills and expertise in order to realize a technology vision within a rapidly changing environment. A trusted ecosystem that includes partners with the ability and skills to execute can bring great returns.
Operate beyond your organization
To make a disruption in the market, speed and time-to-market are crucial. So consider all your options. Make, Buy, (buy first and make next), partner, invest and Incubate.
- Use the principles of “Lean Startup”
- Increase your focus to go beyond costs and internal operations
- Develop new value chains.
- Partner with others
- Take into account acquisitions
- Incubate potential solutions and invest in them as part of your platform
Timing is crucial for survival as well as for success. Investment decisions must be made faster by organizations. Organizations need to improve their internal processes for identifying and evaluating investments. This is evident in the increase in the number of corporate VCs working in the start upmarket.
Developing a digital transformation strategy, and asking the right questions:
This is the main question: Do you create all these bridges, establish the goals, map the necessary building blocks, and set the journey and strategy, and think about your digital transformation strategy?
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However, this is not always the case. Many people don’t have a clear goal or overview of what building blocks, bridges, and barriers or often what they want to build. Stay tuned, as we get more deep into Strategy For Digital Transformation.