Saturday, August 21, 2021

Change "What" More than "How"

Business advantage is the purpose of digital mastery. Otherwise, investments in digital processes are a waste of money. 


Some--because of their role in the business ecosystem and their own revenue models, emphasize customer experience almost to the exclusion of all else. That makes “customer experience” into “digital transformation.” That is fine as far as it goes, but is incomplete. 

source: MIT Sloan Review 


New business models are hard, complicated, complex and often time-consuming, so it is understandable that much DX thinking and action occurs at a more discrete process level. 


Of course firms are going to look for ways to sell online, to leverage newer sales channels. Some sellers of products will look for ways to create service businesses built on “rentals” of those same products. That is an example of a “product line extension” and does not require getting into a whole new adjacency in the value chain. 


In other cases DX allows new products to be created within the core business. Selling “outcomes” rather than products ranging from tires to aircraft engines. So the product is so many kilometers of safe driving or so many hours of propulsion: a service rather than a product purchase. 


The point is to focus on “transformation” rather than “digital.” “What needs to change” is the question, not so much “how it can change.”


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