"A sharp divide is emerging between companies which view digital technology as a tool for steadily improving existing business activities – Digital Followers – and those who clearly see something much more profound – the Digital Transformers."
- Accenture Strategy
Which side your organization falls on depends in large part to your success in the marketplace. There is an urge to hold on to what worked in the analog world. It seems that more success translates to more resistance. Followers tend to focus on optimizing current execution, while transformers focus on answering fundamental questions about the future:
- “How will digital technologies change how we create value for our customers?”
- “What is the ‘job’ our customers are tying to do?”
- “What business are we really in?”
This is the first of
The 5 Paradoxes of Digital Business Leadership by Tomas Nielsen and Patrick Meehan published by the Harvard Business Review. The authors identify the 5 challenges of creating digital leverage for organizations. If you are ready to go beyond simply acquiring the latest cool technology and transforming your company using a digital business model, I encourage you to read their report. When you are done, return for some ideas on how to create digital leverage for your company.
Focus on Customers First
It's not technology that's changed, it how your customers use technology. Digital followers focus on
QR Codes or Remarketing technology. Transformers engage their customers to learn more about the current customer experience. Which devices, locations and time frames do your customers prefer? Focusing on customers helps you identify new products, new sales channels, new markets.
Ditch the App, Embrace the Platform
AirBnB owns no hotels. Uber has no taxis. Their success comes from building platforms where providers and users come together. Their growth is generated when a single user creates demand for or delivers a service. You don't need to be a tech start up, just think like one. Think marketplace, instead of factory.
Stop Shouting, Start Listening
In the beginning, success on the Net was defined as build a website, add SEO, then bury prospects with a mountain of email. The result was spam. It's time to stop waiting for prospects to respond to your hype. Transformers use social listening to seek out prospects, then use the intelligence gained to engage on prospects level. Would you trust a phone physic who didn't know your name?
It's time to stop following and start
transforming your organization to create your digital leverage. What do you think?