We’re now living in a digital age where the way we react to technology and interact with it is increasing at an accelerated speed. Some people are referring to this as the 4th Industrial Revolution which is characterized by a range of new technologies (e.g. the Internet of Things, Cloud, Big Data, Artificial Intelligence, Social, Mobile, VR/AR/MR) that are fusing the physical, digital and biological worlds, impacting all disciplines, economies and industries, and even challenging ideas about what it means to be human. Traditional business models are under threat of becoming outdated and irrelevant from digitally disruptive businesses.
Businesses need to become more digital where their strengths in the physical world need to be blended with opportunities in the digital world.
An overarching business vision and strategy needs to be defined first. A digital strategy then answers the question to how a business can survive and thrive in the digital age. The digital operating model is a technical answer to how IT can help the business by leveraging the disruptive technologies and methodologies that are available in this digital age to improve its operational capabilities.
The focus of digital strategy in many businesses is too narrow, where they are only looking at opportunities to digitise their distribution channels and marketing. To fully realise the value of a digital transformation, businesses need to look across their full value chain to refine their operating models so that they can provide cheaper, better and more customised products; improve efficiencies; respond to market changes faster; and improve customer experience. If they don’t, they’ll be vulnerable to new incumbents that are more agile with better offerings.
Once the business and digital vision, strategy, operating models have been defined; opportunities across the value chain identified, prioritised and budgeted for; a business can begin execution of transformation initiatives to succeed in the digital age.
References:
The Fourth Industrial Revolution, by Klaus Schwab
The Difference Between IT Strategy and Digital Strategy, by Dave Aron
Digital Architecture 101, on Disruptive Digital
Finding your digital sweet spot, by ’Tunde Olanrewaju and Paul Willmott
Zaid Mahomedy is certified Enterprise Architect and Mixed Reality Entrepreneur with over a decade of experience as an IT consultant, Enterprise & Solution Architect; Digital Content Creator and Influencer. Zaid is available to consult to companies on how they can adopt disruptive technologies to transform themselves so that they can succeed in the Digital Age