Defining The Right Business Model For Successful Digital Transformation
Upkar is a global leader in geospatial space, wherein he serves as a key member of the leadership team and contributes to the future vision of technology and systems. He is an IT Leader, Digital Strategist, and also a TEDx Speaker with 24 years of Qualitative Techno Managerial experience in the areas of Strategy Planning, Solutions Architecting, Business Intelligence, and Digital Transformation.
Addressing digital disruption is no longer a choice; it's imperative. Even so, for many companies, the way forward remains unclear. The organizations must determine which digital models are right for them and what changes they'll have to make to get there. Successful transformation requires leaders to build a shared understanding of the threats, identify where the company is going, communicate that vision to the entire company, and make the hard choices about decision rights and organizational restructuring. Leaders must also be vigilant about ensuring that the company's investments in capabilities and innovation reflect their decisions about which digital business models and sources of competitive advantage to target.
CEOs, CIOs, boards, and the workforce all play critical roles in a digital business model transformation, some of which may include:
Need for Effective Leadership on Two Fronts: Focus on the leadership of both the transformation and the accompanying cultural shift. We can't do one without the other. The owner of the transformation does not necessarily need to master both. However, in successful transformations, a CEO sets the vision for both aspects. A CEO has to know the enterprise's strengths and weaknesses and how to get the enterprise to move on both business model and cultural change.
Different Leaders for Different Business Models: CIOs are an ideal choice to lead transformations focusing on building platforms, consolidating data, and integrating silos. Companies that identify a customer experience as their primary source of competitive advantage often ask the chief marketing or customer officer to take the lead. Companies that decide content will be their source of digital value may put product owners and product innovation teams in charge. Those pursuing ecosystems need a leader who can integrate all the sources of competitive advantage, such as the COO or CEO.
CIOs to Explain the Digital Business Change to the Board: While board members rated their digital knowledge relatively low, they usually consider CIOs more effective in helping them understand digital transformation. It's not surprising when we think about how digital affects everything in the enterprise. The CIO has traditionally worked on systems and processes and integration and has a lot of experience and expertise to share with board members. The board members tasked with fiscal oversight typically don't know what digital can do for the enterprise and are looking for help to interpret and evaluate transformation plans. The CIO is a great asset and resource for the board.
CIOs must Focus on Three Things during Transformations: First, top-performing CIOs spend time with customers. To leverage digital to create business value, CIOs need to know how customers use company products and services. These CIOs also focus on innovation. Success in a digital economy demands a steady stream of ideas for customer-facing and internal modernization. Finally, they fully engage with their business colleagues and the executive committee: A business transformation will affect all areas of the enterprise. CIOs can provide digital dashboards to track progress, keep colleagues updated on cybersecurity measures, and establish a clear and straightforward IT governance that addresses new digital assets like IoT, automation, and data.
Employees Play a Pivotal Role: In companies succeeding at transformation, team members are not just accepting but leading digital change. They engage the customers and will do a lot of the work associated with the transformation. Younger employees, in particular, may have an enthusiasm for change and a passion for digital. Successful companies engage the bulk of the people in the transformation, one way or another. IT leaders can spearhead that effort. The CIO is ideally placed to leverage that enthusiasm, passion and skills. Companies use hackathons to find innovations and internal social media platforms to open channels between business units and hierarchy levels, dependent on platforms and integration.
Addressing digital disruption is no longer a choice; it's imperative. Even so, for many companies, the way forward remains unclear. The organizations must determine which digital models are right for them and what changes they'll have to make to get there. Successful transformation requires leaders to build a shared understanding of the threats, identify where the company is going, communicate that vision to the entire company, and make the hard choices about decision rights and organizational restructuring. Leaders must also be vigilant about ensuring that the company's investments in capabilities and innovation reflect their decisions about which digital business models and sources of competitive advantage to target.
CEOs, CIOs, boards, and the workforce all play critical roles in a digital business model transformation, some of which may include:
Need for Effective Leadership on Two Fronts: Focus on the leadership of both the transformation and the accompanying cultural shift. We can't do one without the other. The owner of the transformation does not necessarily need to master both. However, in successful transformations, a CEO sets the vision for both aspects. A CEO has to know the enterprise's strengths and weaknesses and how to get the enterprise to move on both business model and cultural change.
Different Leaders for Different Business Models: CIOs are an ideal choice to lead transformations focusing on building platforms, consolidating data, and integrating silos. Companies that identify a customer experience as their primary source of competitive advantage often ask the chief marketing or customer officer to take the lead. Companies that decide content will be their source of digital value may put product owners and product innovation teams in charge. Those pursuing ecosystems need a leader who can integrate all the sources of competitive advantage, such as the COO or CEO.
Success in a digital economy demands a steady stream of ideas for customer facing & internal modernization
CIOs to Explain the Digital Business Change to the Board: While board members rated their digital knowledge relatively low, they usually consider CIOs more effective in helping them understand digital transformation. It's not surprising when we think about how digital affects everything in the enterprise. The CIO has traditionally worked on systems and processes and integration and has a lot of experience and expertise to share with board members. The board members tasked with fiscal oversight typically don't know what digital can do for the enterprise and are looking for help to interpret and evaluate transformation plans. The CIO is a great asset and resource for the board.
CIOs must Focus on Three Things during Transformations: First, top-performing CIOs spend time with customers. To leverage digital to create business value, CIOs need to know how customers use company products and services. These CIOs also focus on innovation. Success in a digital economy demands a steady stream of ideas for customer-facing and internal modernization. Finally, they fully engage with their business colleagues and the executive committee: A business transformation will affect all areas of the enterprise. CIOs can provide digital dashboards to track progress, keep colleagues updated on cybersecurity measures, and establish a clear and straightforward IT governance that addresses new digital assets like IoT, automation, and data.
Employees Play a Pivotal Role: In companies succeeding at transformation, team members are not just accepting but leading digital change. They engage the customers and will do a lot of the work associated with the transformation. Younger employees, in particular, may have an enthusiasm for change and a passion for digital. Successful companies engage the bulk of the people in the transformation, one way or another. IT leaders can spearhead that effort. The CIO is ideally placed to leverage that enthusiasm, passion and skills. Companies use hackathons to find innovations and internal social media platforms to open channels between business units and hierarchy levels, dependent on platforms and integration.
