Disrupt Or Be Disrupted Is The New CXO Mantra
The pace of technology change is breathtaking. In the new digital economy, it is up to the decision makers to leverage technology to create positive chang and thereby transform business and society. A new study by Alfresco Software, a provider of content management and process automation, and Forbes Insights explores what separates the winners from the losers in the digital economy.
The report “The Great Rethink: How Digital Leaders Are Building Tomorrow’s Organizations” is based on comprehensive interviews of more than 300 top-tier executives. It identifies characteristics commonly held by organizations that continue to outperform others as they seek to establish themselves as digital disruptors in the markets they serve.
According to Alfresco founder and CTO John Newton, “Today’s corporate leaders must realize that they need to disrupt or risk being disrupted. Those who are not yet thinking about how they will innovate with new approaches leveraging technology are at risk,” Newton warned.
Leaders Must Change Their Thinking
The research concludes that there are three levers that business and IT leaders should employ for successful digital transformation which catalyze a rethinking of the way organizations leverage technology:
- Design thinking—where a relentless focus upon optimizing user experience and customer experience guides all business technology decisions.
- Open thinking—in which innovation from both inside and outside the organization is encouraged to drive new initiatives.
- Platform thinking—where the desired outcome of systems and solution deployment is to build an ecosystem of partners and customers that exchange capabilities and data in a manner that creates added value.
“Platform thinking is about new business models,” said Newton. “We determined how prevalent platform thinking was by asking, ‘To what extent do you open up your systems and information to third parties, and to what extent do you consume systems and information from third parties?’ Just think about how Uber embeds itself into Google Maps so that when you pull up some directions, it tells you that there is an Uber three minutes away and that it can get you to your destination in ten minutes. That’s real platform thinking—the ability to extend your reach far and wide to attract more people to your platform.” He added that going forward, fast-growing companies will invest even more quickly in platform thinking.
As supported by the new research, it is important to note that the path to digital success is best realized by activating all three of these levers. Sixty-four percent of the report’s “best-in-class” firms, those that excel across all three categories, report significant annual growth (defined by exceeding 10 percent EBITDA growth over the past three years) versus 43 percent of those still developing their capabilities across one or two of the three key areas.
What It Takes to Be a Fast-Growing Company
First and foremost, the Alfresco research points to the need for CEOs to lead corporate digital transformation, with close to half (49 percent) of the fast-growing companies’ digital transformation efforts being lead directly by the CEO, versus 20 percent for all others. “Digital transformation starts at the top, ideally with the CEO driving change and ensuring that the whole company is moving in the right direction,” explained Newton.
According to Alfresco, fast-growing companies also excel at doing these three things:
- They adopt a strategy of customer- and user-first thinking 85 percent currently have dedicated user experience teams 60 percent plan to increase resources in customer experience over the next three years
- They commit to an open approach to the flow of ideas and concepts in their organizations 85 percent say a commitment to open standards is important/very important 90 percent report the use of open source technologies as important/very important 85 percent describe open data as important/very important.
- They re-imagine a business model that supports a shared economy and leads the way in platform thinking Today, fewer than 13 percent of companies provision their systems for customers/suppliers to connect to them; however, 67 percent plan to increase significantly in the next three years Today, only 16 percent consume information from other customer/partner/supplier systems; however, in the next three years, 56 percent plan to increase their consumptions significantly.
- Nasscom Believes IT industry Will Perform Better Next Fiscal
- India's Insurance Sector Undergoing Massive Digital Disruption
- Bank Branches Will Not Die Anytime Soon: Study
- TRAI's Decision Disappoint Airtel, Vodafone
- How Digital Is Transforming Child Healthcare
- Increased Automation, Agile Development Drive Greater RoI: Study
- Google, Airtel Push UPI-Based Digital Payments Market
- Are You A Cost Center Or A Profit Center?
- The Future Of Banking Is Paperless, Say Experts
- Media Firms To Think AI, Cognitive To Achieve Personalization