What do you think about “extremes”? Extremely beautiful? Extremely rich? Extremely successful? Extremely poor? Extremely anything? Usually it comes with a lot of question marks and usually also with a lot of side effects.
We suggest the “middle way”, a balanced approach to anything. Don’t push too hard, it may break. Don’t let to lose, it may escape. There are a lot of good examples in history, in politics, in economy and many more. One recently published book describes the balance between state power and people power and that there is a very narrow corridor to succeed as a nation or a people.
Nowadays everybody talks about digital transformation, which is good and right. One key question we receive frequently is about the “business value” of digital transformation. This is really the holy grail question. How much should you invest and in which initiatives you should invest.
We see some companies really throwing money at the problem and doing a lot of “cool” digital projects, but with only limited impact on their business performance. You can see them in the graphic in the lower right corner. There is “a lot of hot air”, but very little tangible value. This is unfortunate.
But if managed wisely, at least the digital awareness of the organization rises, the digital capabilities evolve, and most probably an ecosystem of bright minds flourish around the company. These are intangible benefits, which could be transformed into business value and business performance at a later stage.
Then there are see some companies still in a sort of denial about digital transformation. Their business performance will continue to improve, even steadily, but the miss out the opportunities of the digital realm and the “coolness” factor within the company and its surrounding decreases continuously. It will become more difficult to attract new talent, identify start-ups to collaborate with and over time the business becomes outdated.
In such a case it becomes very hard to turn the ship and digitalize the business. Usually it might require much more investment, the cultural transformation inside the organization becomes very hard, and convincing board or other key stakeholders also becomes close to impossible.
So, what’s the conclusion. Try to stay on the “middle track”, have a “balanced vision”. It’s not always just about business performance and short-term gains. The positive side effects are also very important, actually quite tangible, and makes you and your organization “alive” and “recognized”. This will allow you to foster a rich ecosystem of talent and ideas. This will enable you to promote a culture of experimentation and agility. This will also enable you to discover new business models, grow your business in the physical and digital worlds, and find a balanced portfolio approach to performance, talent, culture and value.
As a check point, you should definitely use our “digital maturity index” tool to understand where you are stronger and in which areas you are weaker. Here is a brief self-assessment survey, which immediately generates a summary report. There you can see your scores, get some advice, and if you need more elaboration, feel free to get in touch with us.
We wish you best of luck. Stay on the right track. Be sure, that you are on the right track. Get some external advice to support you as a “road friend”, since digital transformation is a long journey. May the digital forces be with you.
THE BETTER NORMAL #1: “THE BETTER NORMAL” WILL BE CREATED BY US
THE BETTER NORMAL #2: NO WAY OUT!
THE BETTER NORMAL #3: SYSTEMIC CHANGE OR NUDGE FOR THE BETTER NORMAL
THE BETTER NORMAL #4: A CRITICAL APPROACH TO DIGITAL
THE BETTER NORMAL #5: A CUSTOMER EXPERIENCE PERSPECTIVE
THE BETTER NORMAL #6: The “Real” Resilience Of Supply Chains
THE BETTER NORMAL #7: Aim For Digital Greatness
THE BETTER NORMAL #9: The Better Normal: Operational Excellence
We are trusted advisors to many great companies on their digital journeys. Our passion and focus help businesses succeed. Digitopia is an objective and independent management consulting firm driven by values and delivering tangible impact.