Dizzy from the heat of talk about digital transformation and warnings that a team in a garage somewhere in the world is about to wipe your business off the face of the earth? Calm down.
The latest froth from the ITC sector is digital transformation and much is made of how Amazon (Retail and now Cloud Computing) Uber (transport) and AirBnB (accommodation) and Netflix (entertainment) have gone global and disrupted the industries they serve and in turn made the founders of these business very rich. There are not that many examples of disrupters going big and those that flopped? Who cares.
Businesses like Uber started out to disrupt whereas the majority of businesses are cranking the handle and delivering value and earning money and it is BAU. They may be next in line to be disrupted and that is always a threat and reason why the digital transformation theme is so topical today particularly among ITC vendors and consultants. It was interesting to read a view that IMO sets the tone for the digital transformation conversation more realistically. Anyway, you decide. You can access the article at MIT Sloan Management Review (Feb 06 2017) when you click here
The article busts 5 myths:
Myth #1: Every company should digitally transform.
Reality: Not every company, process, or business model requires digital transformation.
Myth #2: Digital transformation leverages emerging or disruptive technologies.
Reality: Most short-term transformational impact comes from “conventional” operational and strategic technology — not from emerging or so-called “disruptive” technology.
Myth #3: Profitable companies are the most likely to launch successful digital transformation projects.
Reality: If things are going well — defined crassly as employee and shareholder wealth creation — then the chances of transforming anything meaningful are quite low.
Myth #4: We need to disrupt our industry before someone else does.
Reality: Disruptive transformation seldom begins with market leaders whose business models have defined their industry categories for years.
Myth #5: Executives are hungry for digital transformation.
Reality: The number of executives who really want to transform their companies is relatively small, especially in public companies.
Attribution: Stephen J. Andriole is the Thomas G. Labrecque Professor of Business Technology at Villanova University in Villanova, Pennsylvania, and is the author of the book Ready Technology: Fast-Tracking New Business Technologies (CRC Press, 2014).