Over the past decade, “digital” and “innovation” owned the business buzzword bingo game. “Digital transformation” and “Innovation” initiatives now overshadow previously dominant “Business Transformations.” Succeeding in the digital age requires a nuanced but significant shift from traditional IT service models to digital based product teams.
Digital teams hyper focused on creating great products aid in the production of elegant, frictionless solutions. Enterprises being disrupted by much nimbler startup organizations must evolve quickly, or face losing market share. In some cases, disruptors have been disrupted. I grew up in the Blockbuster era, saw Redbox change that, and saw Netflix disrupt that. In all cases, customers won because the product got better.
Business starting today get digital out of necessity. They have no customers and almost all customers demand digital today. In a way these startups have it easier because they do not have to deal with the corporate politics of getting a large digital transformation initiative off the ground and all that goes with it. However, large enterprises with steady income streams from existing businesses increasingly find themselves losing to digital native newcomers. Enterprises often possess a scarce resource startups do not, capital, but capital alone cannot keep their new digital competition at bay.
I have found that while no single thing ensures digital success there are certain concepts that increase the chances of coming out on top.
Every single one of these characteristics cannot be successful with capital investment alone. Enterprises often think throwing money at digital transformation initiatives can get them ahead of the game.
- Team – Sure you can go out and pay a lot of money for the best talent on the market. But you cannot buy the culture required to have that team deliver. In my opinion, team is the most important component in getting digital. With the right team, an organization can adjust to fill in for other shortcomings. Team has several components including: c-level executive support, a strong digital leader, structure of the teams, the right product teams, and the ability to deliver.
- Design – Elegant consumer solutions require elegant design. Consumers desire frictionless solutions with well thought out design elements. Rather than your product doing a job well, they must enjoy using your product. When I say design, I do not mean just the look or feel of a product. I mean the full consumer experience, end to end.
- Data Led – A key component to any digital transformation is learning what the consumer knows and may not even know yet. Learning and iterating requires data and the ability to react to that data.
- Think Big – Any digital initiative needs a vision. This becomes increasingly important when a larger enterprise goes digital. Additionally, there must be alignment in the digital vision and the overall business vision.
- Funds – I know what you are thinking, “I thought you just said money can’t solve a digital challenge.” I said money ALONE can’t get you digital. But without sufficient funds, a digital transformation will fail. However, a focus on value and fiduciary responsibility is also required.
Dipesh Patel is founder of Solvegy, a management and technology consulting firm specializing in bridging the gap between strategy and implementable solutions. You can follow his musings on fatherhood, travel, technology, entrepreneurship, cocktails, and all things Texas Longhorns here.
