McKinsey: companies engaged in digital transformation, technology must not be “kidnapped”

With the advent of the digital age and improve technology-driven processes, increasing economic rise of the platform, video rental, movies, physical retail, advertising and media, data storage, taxi industry, restaurants and takeaways, hotels and other industries began to overturn. In this process, to customers are thinking, be anxious customers become the winning book. Ability to pioneer and insurgents continue to be strengthened to better serve our customers quickly establish the size and change the past called “iron rice bowl” of business and industry fundamentally. Net about Uber car platform and Lyft, short rental platform Airbnb, cloud computing platform, AWS, Amazon’s electronic business platform, the technology giant Google, social networking platform Facebook and Netflix streaming media platform, including a public enterprise successful use of technology not only beyond the other established businesses and was a huge first-mover advantage. In some cases, they are completely reshaped the business operating environment, resulting in industry-leading companies have eleven defeat. In this context, business owners and managers worldwide understand such a truth, that is, if you want to survive in the new competitive environment, they must be digitalized. By 2016, the World Economic Forum (WEF) on industrial digital transformation of the paper says: “Most industry leaders generally believe that the role of digital technology are changing rapidly from marginal efficiency of the driving force for innovation and undermine the basis of the promoters.” World Economic Forum, said that digital is the “large-scale enterprises in various aspects and a comprehensive restructuring of reasons, to provide an unparalleled opportunity to create and realize value, but also a major source of risk.” Whirlpool Chief Digital Officer Niels Aillaud said: “We live in a digital world, those companies do not realize it or not integrate into the customer’s choice in today’s precarious.”. These manifestations depends on the opportunities and risks of business and industry. Most business leaders may understand this, and it may have been part of the business began to shift to the digital platform. What business completely digital means? Business Insider website jointly with the Commonwealth Bank recently published a “digital report,” In the report, the world’s leading management consulting firm McKinsey (McKinsey & Co.) and David Edelman of Karel Dorner enterprise digital overtaken by this description: “For someExecutives , this is a competition about technology. For others, digitization is a new way to interact with customers, it represents a new way of doing business. While these definitions are not necessarily incorrect, but this diversity perspective, but often let the team leaders ‘fall apart’. The reason is the inconsistency and lack of understanding of a shared vision for the future of the road business. Because of this, companies often do not miss the continuous efforts and initiatives direction appears, and then showed a slow or lost from the start. “Dorner and Edelman said:” What digital means? For this issue of understanding varies. Enterprise and business leaders at the time to clarify this issue, more emphasis to “a way of doing things”, rather than “one thing.” However, this approach requires you to change the look of the entire business perspective right from the start. Subsequently, the two concepts digitized into three strategic characteristics: ● ● create value and create value in the implementation of customer experience vision process ● build support for the overall architecture of the basic function of these three attributes in new areas of the business world is any number the basic elements of the strategy, but need to better understand that they can put theory into practice. Creating value in new areas appears to be a positive starting point. For businesses, to deal with these three attributes in the reverse order may be more intuitive, that is the foundation to build capacity, create value, and then exploiting the boundary. Dorner and Edelman said: “Digital needs to keep an open mind, to re-examine your whole mode of operation, and to learn about new boundary value.” On the need, this means a review of existing business operations and departments, as well. ” new business development adjacent categories. ” Digitization process needs to understand the economic, market development, and customer preferences and expected trends. Dorner and Edelman said that if a more traditional management language to express it, digitization begins with (business) environment “Scan.” But now the environment than ever busier and busier. Therefore, some new “scan” tool. Turning to aspects of creating value around the core business Control Engineering Copyright , the two experts said, the next element is digitized to rethink how to use the new features to improve customer service sideformula. This is based on an understanding of the customer every step of the procurement process – no matter how channels – and to think about how to design digital capabilities and give the best experience in various parts of the business. Therefore, [the customer’s] concern is the entire enterprise digital transformation of the core. Customers at the core, how can we do? Dorner and Edelman said that the next property companies need is to establish a customer base of core digital capabilities. However, they stressed that there are two elements to build these capabilities, and technology is ranked in the secondary position. The first is the “mentality”, that’s empowerment digital thinking and organizational culture. This is repeated in the literature and the success of the digital journey. Thus, while Dorner and Edelman said: “Digital is about using data to make better and faster decisions, the decision-making to a smaller team, and develop more iterations and fast way of doing things.” But, you first need a digital thinking. In other words, the “digital thinking to make cross-functional collaboration institutionalized and flatten the hierarchy, and build environment to encourage new ideas. Develop incentives and indicators to support this decision-making agility.” Digitization of the core business is to understand their own, people, the environment and customers. This is to stimulate thinking by creating digital flexible organizational structure in order to focus attention focused on customer delivery. And only then with the right IT systems and infrastructure to achieve all of these goals. Technology is a facilitator, a means to an end, not an end. What Digital is not? Digital and digital to understand what is and what is not? Deal with some common misconceptions is very important. Kearney management consulting firm (AT Kearney) partner Martin Fabel and Michael Hu, who referred to the “eight kinds of common digital transformation of misunderstanding.” Fabel and colleagues said, “A lot of stories are passed from one digit to the master another digital master, without taking into account many established business reality. ” Therefore, in this world, digitizing mystification, and those who may feel they did not buy the district leader in digital consumer behavior separate (although the latter can often be the fastest adopters). However, it is essential to focus on reality. For as behavioral economics school needs to wake up from over-reliance as in mathematics, digital process also need to practice, “the hypeSeparated from reality. “Digital does not need to be too aggressive. Behind closed doors ignored useful or creative design thinking point of view,” it can not be used to promote the idea of ​​each workshop and conference, “Fabel said. They pointed out that, in fact, if you want to radical transformation, companies must take a few steps and go through trial and error process and understand new ideas. this step needs to promote change leadership and management through trial and error and learning process. Also, Fabel, who mentioned the first step, namely the concept of MVP (minimum viable product) is also used as a digital business transformation process and a key step in the emergence of many practical examples in the literature. after establishing MVP, Fabel, who said the next step is “required several rounds of applications initiatives to build capacity and competitiveness. “this is the test and learning. Finally, the business case must be” evolved from MVP stepping stone to success. “Bigger and stronger nice idea, but it should give priority consideration factors driving the financial impact of Martin Fabel and Michael Hu said:.” Artificial Intelligence (AI) and robotics process automation (RPA) are having a profound fundamental part of many companies influence – from the financial reporting and inventory management to customer service, but both need to understand the differences cause problems and processes. “Technology itself or its application is not all the answers or cure. Instead, companies must learn how to deploy its technology and learn how to create value. Today’s technology business leaders and insurgents have accepted the data, processes and information content to build more good systems and processes for operations and customer service. in a successful example control Engineering Copyright , is closely related to the application of such data with the company’s overall business strategy. Fabel and his colleagues stressed that, as the company part of the digital transformation of collected data will add value. It should be noted that “with the companies expect business results there is no digital transformation of close ties will never end, and probably just stuck in the past, not the future success” they said: “the long-term success you need to create the appropriate data management architecture based on the final goal. “When we talk about building digital strategy, we talk about it. Kearney (A.T.Kearney), said data and analysis should be deemed” throughout the data definition and quality, management, storage, integration,Presentation, access and archiving and other aspects. “This is a critical issue that needs attention. Considering the” Review of the implementation of the EU General Data Protection Law “as well as customer data ownership and usage surge importance of this issue is self-evident Again, like a start-up company, we should focus on building the product or service and have the vision to subvert the goals of the industry. However, Fabel, Hu and Klein said that while “the company has a forward-thinking on everything stressed speed and accountability “, but this is the key to the success of start-ups, while large companies tend to” start from a stop will encounter a series of entrepreneurial culture to take root system. “this is why cooperation can be digitized transformation reason powerful part of the seven rules of the digital transformation of the “digital report” that, as we move towards 2020, almost all of the modern business world have been subjected to the following effect: ● technological change; ● include consumer and B2B end, including customer empowerment; ● around for prices, they Lee and delivery expectations of rebalancing the face of the traditional business model of the interruption, and the need to shape the future of the economy and increased customer demand uncertainty, business leaders understand digital. This is for different people, companies and industries means different things are important, organizations and their leaders must recognize that the world has become digital; it is not a channel, but a paradigm shift (paradigm shift), is the only way the enterprise “report.” It gives seven rules of digital transformation: leaders need to change their methods of command and control is no longer the best way to manage the business, if necessary, leaders need to become more collaborative [123.. ], to become co-creators colleagues and clients around. focus on the customer. this is the Amazon head Jeff Bezos way. enterprises and their leaders need this as the main target of its digital strategy. leaders need to adapt to customer needs .. they have with the customer’s needs, wishes and expectations change and develop customer – regardless External or internal – must be the main focus of the corporate culture is essential technology makes it possible to digitize, resulting in improved customer proximity and the ability to provide products they want, but business rules have not been abandoned [123… ] , the corporate culture is still the key to success. Without the correct cultural efforts, the digital transition will fail. To fail satisfied. An important cultural change is the whole company of people – from the board and executive level until the workshop – must make his own experiments and experience failure. This requires a change in mindset. Shaft (Silos) is the enemy. In the digital world, breaking the silos are critical to any transformation strategy. Experiments, failures and success requires cross-functional cooperation to achieve, and the shaft (mode) inhibited this. Technology is a means to an end. It is the realization of customers and business leaders expect changes required promoters. It is not an end in itself. Digital is not a destination, but a way to travel. The world is to accelerate progress, customer expectations continue to grow, competition has intensified. In this context, digitization can be regarded as a period you may never feel that their trip destination has been reached.

Related articles