In this digital age, enterprises must change the way they interact with their customers, partners, and suppliers. Enterprises also must reimagine their existing business model to reap the benefit of digital. Customer expectation is changing rapidly due to the availability of a vast amount of information and dynamic demands. There is a value gap that is being created with what the customers want and what the enterprises are able to fulfill. Enterprises must work hard to close this value gap or its stands at risk for the entire business.
The born-digital players are already disrupting much of traditional business and they are very likely to reimagine some more and thereby putting the traditional enterprises on the defensive. These enterprises must start to think like them in order to stay relevant or competitive. If you look at the reason behind the underlying success of these born-digital players, it is their ability to imagine their business as a platform business model. A platform business model is a radical shift from the traditional pipe business model where the operation was linear. Here the platform business engages the larger ecosystem of the customer, partners and suppliers and able to leverage the underlying value of data by means of digital technologies.
The traditional enterprises must start to think like technology companies. Part of that has to be the imagination of the business by itself. It needs some critical questions to be answered such as –
1. Given the huge amount of experience, the enterprise had if it had to start all over what changes and improvements in the process must be done?
2. How can value be created with help of the ecosystem by involving customers, suppliers, and partners
3. What are the current technology gaps that need to be addressed to accelerate the digital processes
Enterprises must be able to distinguish between digital strategy and digital transformation. The two terms are often used interchangeably but it does carry a different meaning when comes to shaping your digital enterprise. A digital strategy per se could be a silo approach of using digital technologies in one particular group of business such a supply chain operation or sales management or e-commerce for that matter where the enterprises are just looking to add one more channel for their customer acquisition. This approach is limited in the sense that it only addresses a part of the bigger problem.
Digital transformation, on the other hand, demands an overhaul of the business and building new and better ways of doing businesses. This requires a much more concrete effort right from top management commitment to execution to the lowest of the organization pyramid. This approach leverages digital technologies, tools, processes, and people to reorganize the business. This collaborative effort is a multiyear approach and if enterprises are serious about staying competitive, they must invest this time and energy to fix their business navigation. The old ways are coming to an end and it giving way for the new ways of doing business. It has always been so, right from the first industrial revolution of organized manufacturing to steam, we are in the age of the fourth industrial revolution now where digital will lead the way of change.
At Sonata, we help customers reimagine their business with the help of Platformation™ which is Sonata’s unique approach to digital with the help of platforms. We help enterprises to think like a born-digital company with help of Sonata’s proprietary 16 point technology framework, digital maturity study and digital consulting. This helps enterprises to become what we call it as Open, Connected, Scalable and Intelligent. It embodies the platform development intricacy with its proven framework that helps enterprise accelerate the digital agenda.
It is quite evident that digital is here to stay and if your enterprise needs to stay competitive and have an edge over the competition, they must start to think like platform companies otherwise they stand the risk of losing the very business.