Have you got your digital transformation strategy defined?

Digital transformation strategy is about enabling enterprise and embracing digital disruptions to evolve new digital business models.

In the digital business ecosystem, there are technovators (technology innovators) who research and innovate disruptive technologies, and there are biznovators (business innovators) who evolve new digital business models. Biznovators leverage technology disruptions such as drone-based delivery or aerial photography and video surveillance, use 3D printers to enable customers to order tailor-made products to their liking or health scientists to print 3D vertebra for corrective spine surgery in humans.

These new digital business models leverage the Nexus of Forces, help enterprises achieve competitive advantage and are recognised as the leaders in technology-led business innovations. For new digital business models to succeed, the DNA of the enterprise needs to change to be able to support the flux of operations triggered by the mix of traditional business models and new digital business models.

Take the case of Amazon and Dominos who might use drones to deliver supplies to customers. While this does not replace the existing delivery model that has been their core business model, the new digital business model opens upa new market segment and an expanded customer base. To achieve the desired business velocity, organisations would have to adopt a bimodal strategy where they continue to support the core business model with existing IT, whilst they evolve lean and agile operations leveraging digital disruptions to enable and support new digital business models.

This bimodal strategy applies to enterprises that want to take on the digital transformation roadmap including the IT service providers who play a major role in helping enterprises with their digital transformation. As IT service providers continue to support enterprises to manage and maintain their existing business models and operations, they will have to develop a parallel IT ecosystem consisting of the young turk technocrats and digital strategists to help customers’ CMOs and CIOs adapt and adopt disruptive technologies to evolve new digital business models leveraging the Nexus of Forces.

The bimodal strategy should only be a tactical approach for the near-term with the long-term objective being convergence of the existing operations and IT with the new lean and agile IT. This will help enterprises to streamline their bottom line with unified operations that are capable of supporting the coexistence of both business models to continuously improve and expand the top line.

To get started, enterprises need to assess where they rank in the digital maturity model and think about their digital business growth.