Thinking in terms of total transformation questioning business assumptions in search of value is the new normal. The strategy today coincides with innovation, which is not only digital but impacts the entire company, for a successful fluid evolution. It is now indisputable that in the years to come, every company and every industry will have to continue to face the challenge of transformation in an increasingly profound and accelerated manner, to such an extent that we can go beyond the concept of digital transformation to think about a tour court transformation. This is what makes it a successful transformation.
The drive for transformation is impacting every level of business processes, especially at this time characterized by a high degree of uncertainty and a critical and highly fluid economic and social situation. To face scenarios in constant movement and transformation, we must learn to question our beliefs. Operationally, this means rethinking the “business assumptions” underlying our way of thinking and acting. Only in this way will we find a more complete and flexible transformation approach that adapts over time to allow us a successful transformation.
Business assumptions are facts that are accepted as accurate or truthful and which become presuppositions in the development of strategies and planning: they are the facts on the basis of which we make decisions, even unconsciously. And if the assumptions are not truthful, solid, reliable or outdated, they will inevitably lead us down ineffective paths.
Assumptions can be different. They can be technological: for example, we need to ask ourselves what new technical availability is on the market, if there are innovations, and if some technologies have become available or are accessible at lower costs. They can be financial: for example, access to capital for investments that cost less is made convenient. Or they can be political-regulatory with fiscal or marketing innovations such as the advent of new techniques or new tools.
Software and technology companies, naturally devoted to change and transformation, are more accustomed to modifying basic assumptions because they are agile, fast and by nature innovative. In other sectors, conversion is physiologically slower, and many companies still need to be structured to do it. We have all noticed the transformations taking place in sectors such as finance, telecommunications, energy, automotive, healthcare and media.
The leap we must make today is to think in terms of transformation because this is normal. The arena in which we must compete, in fact, has no stability, is liquid and is the subject of continuous reconfigurations. The shape of the theater changes continuously. Here, digital transformation must be framed within this broader thought of transformation, which must help us in generating innovative stimuli and disruptive ideas.
More generally, the transformation brings profound changes to the company structure, management flows and operating models. We can summarize three macro types of conversion, depending on the level of impact.
Following a corporate transformation, the meaning of strategy also changes, which increasingly coincides with innovation. The need to have a mindset, i.e. a way of thinking and acting calibrated to creation, becomes central for anyone involved in business and beyond.
Unfortunately, many companies see the change coming and understand it but, often overwhelmed by operations, need to adapt to face it structurally. Sometimes, they search within the product category for competitor models to follow. But letting yourself be constrained by the configuration and perimeters of the category and industry competitors is probably not a prosperous source of inspiration if it becomes just a copy and paste. And without evaluating which assumptions and objectives the competitors have decided their strategies.
Successful transformation means bringing long-term and non-reversible changes. Adding a digital layer, a digital channel, or a new digital platform is innovative but needs more operations; the modification must be a change in the logic of creating value for the company and not just an operational reasoning. Real transformation concerns evolution. It means focusing on the drivers that drive the creation of value for the company, while digital transformation focuses on efficiency and affects the company’s digital strategy.
The company thus presents itself to the market in a new guise, with a new company and brand narrative strategy that goes beyond the sole focus on what is generated through the digital channel. In other words, we must be focused on something other than the numbers but on the things that produce the numbers! We have witnessed three types of successful transformation over the years.
The first case is that of Nokia. A mighty shock triggered by external events forced the company to transform itself to survive ultimately. Shockingly. The second, for example that of Adobe, where the company makes a strategic move in line with the trends that bring significant and sudden changes to its business model and the logic of value creation. The last method is that of Microsoft, guided by a long-term gradual evolution, well planned with targeted allocations for business areas—a continuous and well-governed evolutionary transformation.
The suggestion, therefore, is to frame the digital intervention within a broader and continuous thought on the transformation that impacts the company, placing the focus on the phenomena that generate the numbers and not just on performance because this is what produces success.
Also Read: Digital Transformation In Companies: Understand Impacts And Advantages
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