Translation | Interchain Pulse · Yaqi
[Interlink Pulse Press] Regardless of whether it is accepted or not, every individual and enterprise is experiencing a transition to a digital economy. There will be many outdated ideas when the old and the new are replaced. Gartner's latest article summarizes these outdated ideas. As part of the digital economy, doing blockchain business can also be used for reference. Interlink pulse is specially compiled. The following is the text:
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Outdated ideas are always preventing companies from going well on the road to the digital economy. Embracing new ways of thinking can enable digital business growth.
For example, the British grocery chain Tesco has improved the supply chain efficiency through data analysis and saved $ 150 million; oil and gas giant BP saved $ 7 billion annually through IoT sensors; Hershey used machine learning and the Internet of Things to produce each batch Save $ 500,000 on candy.
These saved revenue use cases share a common thread-a proven digital business approach. Not only can businesses simply transform traditional processes into digital processes, they can also change processes by optimizing processes (such as supply orders) to accomplish previously impossible things (such as IoT-based predictive maintenance). But when it comes to digital goals, too many companies set goals too low.
Gartner's vice president Dave Aron said: "Sixty percent of companies are powerless in digital business." "Although 82% of CEOs plan to transform, only 22% of CEOs believe that a major change in their business model is necessary . "
The root cause of this helplessness is traditional thinking. This mindset prevents leaders from adopting transformative approaches. Here are six outdated ideas that hinder digital growth. Update them to increase the demand for digital growth within your organization.
Antiquated idea 1: Digitize only IT department
Senior executives tend to ask their CIO for guidance on how to integrate digital approaches across the company. Although CIOs play a vital role, digital transformation cannot be driven solely by IT, just as marketing cannot be held accountable to customers alone. Senior leadership determines the company's strategy, and then IT and its colleagues work together to support the department's priorities.
Digitalization is not an independent project or plan for the IT department or other departments. Digital technology plays a role in all business activities, from who makes decisions, how decisions are made, to when employees can be used to collaborate and get work done. It's a whole.
Recommendation : Promote a holistic digital strategy for the company, tell employees what it means, and encourage business leaders to consider digital as part of every decision or plan.
Antiquated idea 2: a fixed global role
Geographical stereotypes such as "East Asia is the land of manufacturing and India is the land of business process outsourcing" are outdated and restricted. Global economic change is spreading wealth, talent and industrial capabilities around the world. Successful digital businesses will think creatively about geography. They will cross geographic boundaries and go beyond regional stereotypes to acquire talent, resources, and partnerships for ultimate success.
Recommendation : Take a multipolar world. Promote broad team diversity and increase multicultural awareness for all employees.
Outdated idea 3: Growth comes from core positions
Strategists used to pursue organic growth by leveraging existing core competitive products or brand extensions. Digital capabilities and data expand the possibilities. Just as Amazon Web Services has grown out of the company's internal data centers, old companies can broaden their capabilities to grow new lines of business.
Recommendation : Find new markets for internal digital capabilities and opportunities for data resources release. Explore organizations and partners with complementary skills in these new markets.
Outdated idea 4: User experience (CX) takes place organization-wide
User experience (CX) has long focused on user interaction with products or services. However, as people interact with physical and digital platforms as part of the overall customer experience, the boundaries that mark the end of one product experience and the beginning of another become more and more.
Take the mode of transportation as an example: One day the self-driving cars shared by multiple owners will be charged according to the distance traveled, and each owner is called upon to pay insurance, tolls, fuel and wear and tear. Fees will be transferred automatically via digital currency. For users, this is the whole process of sharing cars. For companies, the mobile intersection between insurance and banking requires a broader understanding of the user experience. This cross-industry experience will become the norm for digital business.
Recommendation: Think of CX as a cross-market integration activity. Explore opportunities from a customer behavior perspective. The overlapping of departments is a natural consequence of customers operating in the real world, and opportunities need to be found to take advantage of it.
Antiquated idea 5: Business success is only about processes
Previously, the effective execution of core business processes determined the strength and performance of a company. Companies that still operate in a process mindset view business activities as predictable and repeatable. Digital thinking requires an open attitude towards spontaneous work attitudes and one-time opportunities to solve customer problems. In a digital environment, process thinking is not useless, but it must be flexible enough to meet customer needs and service products.
Recommendation : Too much emphasis on processes can lead to rigid approaches that fail to capture new opportunities. The needs of processes and products should be considered in order to design better digital products and services.
Outdated idea 6: Agile practices make Agile companies
Agile development enables technical teams to quickly deliver new features and adapt quickly as new requirements arise. After verification, agile work is popularized in non-IT departments such as marketing and operations. Agility works not only at the process or functional level. Digital business requires applying the agility of the entire company to strategy, culture, investment, and other areas.
Recommendation : Cultivate a culture of adaptability through a leadership mindset. For specific priorities, please adopt a product management approach that encourages rapid, incremental deliverables and the ability to shift and adapt as necessary.