When we talk about digital transformation, we focus on the outcomes that the clients are driving rather than focusing on the means only.
In our experience, the outcome of Digital Transformation, for any business is to drive Growth and leverage New Business Opportunities, while maximizing Value created for their customers and partners.
What does this mean?
We see a growing trend where digital has blurred the boundaries across industries. A telco today is, also is a content creator and distributor. They also expand to play the role of a financial institution when they offer mobile wallet solutions. A bank, on the other hand, partners with insurance companies to use their platform to sell insurances, it also is a content provider or aggregator when it provides Business related information to its SME customers. One of the trends to leverage this trend is investments being made by incumbents to create ecosystems that can enable symbiotic relationships to create value for a customer, while enabling the enterprise to focus on their strengths.
All these are known facts, so what are we talking about here?
This blog is not about why Digital Platforms or Ecosystems are needed, but about how an enterprise could leverage the building of one to spearhead their digital transformation.
Every enterprise we work with today and have, in the recent past, have one or more initiatives focused on creating a new Digital Ecosystems. What we have seen however, is that more often than not, these initiatives get caught up in the snares of the Enterprise Way of Working and either get indefinitely delayed or end up being a highly scaled down version to what was envisioned.
What goes wrong and how can this be circumvented?
Conway’s Law says – “a system will reflect the dysfunctionalities of the organization that designed it”. The inverse to this should then be to design the system first and then define the organization around the system, so as to remove the dysfunctionalities and replace them with an organization that would enable the system needed. This is what we, in our approach, term as Demand Driven Design during Digital Transformation.
Another principle from Agile, we apply is that of Vertical Slicing – or end-to-end slicing based on value. Extending the same principle, could we look at a Digital Platform as a need driving as an end-to-end slice of value, from a transformation perspective?
How do we do it?
We work extensively with clients to enable defining and designing Digital Platforms and ecosystems and then enabling Organization design and change targeted to bring to life the Platform envisioned. This involves changing across the following dimensions
As Stephen Covey says in his book – The 7 Habits of Highly Effective People; “start with the end in mind”. Any Digital Transformation should start with the vision of the Value it desires to drive to the market and the kind of Digital Product/Platform/Ecosystems it intends to build to realize the same. This design should then spear head the change rather than starting inside out to say, “we will change the organization to change the way we deliver”.
Our following blogs will talk more about each of the dimensions mentioned above, with case studies