While companies aren’t wrong to believe technology will make them more competitive, the real need is for organizational transformation. Many are still built on the “inside out” model of the Industrial Age, organizing around processes and functions that might be important to the company’s operations, but don’t really mean anything to customers. Delivering on the promise of the digital revolution requires thinking more “outside in.” Companies need to be built on what customers need, want and care about.
Creating an evolved enterprise requires new approaches to how we structure organizations, centering on purpose and managing transformational change. Each of these fundamentals play a role in creating an evolved organization in the digital age:
Designing for Digital. Companies built for the digital age operate in fundamentally different ways. They are designed for speed and agility: they can sense the market, make swift decisions and get solutions to market quickly and iteratively.
Centering around Purpose. The need for a clear purpose—the heartbeat of all a company does—has never been more important. In fact, the demands of a more agile, empowered digital organization have made purpose an essential component for determining a company’s operating model, opening new paths for growth, winning customer loyalty and attracting talent.
Leading the Transformation. Leading Digital Transformation in an organization isn’t easy. It requires new organizational muscles – new governance, skills and incentives – not just new tools or processes. To kickstart meaningful change, companies need to create a case for change, raise the digital quotient and create a multi-speed transformation to prioritize certain aspects of the business.