Bob Dylan is recognised as one of most influential writers of the 20th century. He is not though, seen as an inspiration for the digital age. Perhaps he should be? With his 1964 song, “It’s Alright, Ma (I’m Only Bleeding)”, he states that “He not busy being born is busy dying”. With this line he couldn’t have been more prescient.
Organisations need to continually “be busy being born” and innovate or face the alternative.
Think about it: what differentiates companies hobbling along the digital highway from the ones paving the way? The ability to embrace change, refuse status quo and turn the business into an ever evolving entity.
Put another way, being digital is about reconciling the pace of adoption of new technologies with the pace of their commoditisation. The latter recently experienced a dramatic acceleration, while the former is often stuck in old-world mode.
Old world versus Digital world
Twenty years ago, adopting new software was a big deal. There were limited numbers of vendors in each market segment. Software customisation or process transformation was necessary to take advantage of technology. Integration was complex, ongoing maintenance and support often presented challenges. All of this resulted in expensive acquisition costs, from both a financial and an effort perspective. Long-term supplier contracts were the norm.
Once software was installed, and the vendor proven, it was a lot easier for an organisation to allow the vendor to expand its footprint through additional modules and products rather than go back to the market to look for alternative solutions.
From a vendor perspective, selling and delivering software was costly requiring a large sales team to reach customers and negotiate complex contracts. Vendor delivery teams would need to be highly skilled building bespoke integrations to satisfy the specific needs of customers.
New software integration was expensive, risky and therefore needed careful consideration. Adoption pace was slow as software was seen as complex far from being a commodity.
Today, the pace of commodization has increased by an order of magnitude, mainly due to Cloud technologies. Let’s have a look: what does innovation mean today in the enterprise world? Big data maybe, machine learning and AI, blockchain or IoT?. All these have already been turned into commodities. Fancy running some machine learning algorithms on your customers database? AWS has an API for that. Conducting a first run shouldn’t take more than a few hours of work. Same goes for most of big data technologies, IoT, blockchain and even virtual reality.
The as-a-Service paradigm has drastically reduced costs, complexity and risks of adopting new software and technologies. The SaaS model for instance through turning CAPEX into OPEX, has abolished any notion of commitment.
Should your company use this marketing software over this one? Who cares? Use both, allow yourself to pay a bit more for one month or two, then keep the one that perfectly meets your needs. Going further, why even consider it at company level? One department may prefer one software because it measures what they want in the exact way they want, while another department may prefer another one. With almost no acquisition and no integration costs, why try to over rationalise at the expense of business value and user experience?
Standardisation is still to be considered on non-differentiating applications, but at a much less prominent position.
The Digital highway
All this said, most of old world companies are still considering innovation with the same eyes as before, missing business opportunities and losing ground to new entrants.
If conducting an IoT experiment means running an RFP, conduct a 6-month PoC and sign a multi-year contract, then you may be doing IoT, but you’re still hobbling on the digital highway.
Velocity is key to transforming your company into an ever evolving, fast learning, business.
“He not busy being born is busy dying”
Thanks to Clara, Gavin, Jian and Robin for their kind guidance.
More on the subject:
- Let a 1,000 flowers bloom. then rip 999 of them out by the roots by Peter Seibel
- Oracle’s cloudy future, by Ben Thompson
- Understanding Ecosystems, by Simon Wardley
What do you think? Leave a reply below or contact me by email.