Transparent Digital Transformations Mitigate Risk, Aid Business Objectivity

NEC – Digital Transformation occurs in two ways. Firstly, organizations implement incremental improvements that help parts of the organization to better perform their fundamental business tasks.

Secondly, the organization completely changes the way it does business—by adjusting its business model or taking advantage of new markets or products—which has the potential to transform the industry and disrupt several others.

There are extremely serious consequences if digital transformations are not properly managed. Problems generally occur when organizations fixate on specific technologies or attempt to reach the ‘transformed’ state without fully understanding their existing digital landscape. This results in wastefulness, duplication, delays and worse.

The foundation of a successful digital transformation is a comprehensive understanding of your current digital landscape and a self-assessment of how prepared you are to face the challenge.

Like many powerful concepts, successful execution is almost impossible to achieve until enabling technology is invented. So, some twenty years after initial attempts, it is now possible to safely and effectively consume innovation as part of the digital transformation journey, instead of being compelled to become more innovative.

Innovation is best accessed from a vibrant vendor marketplace, yet current procurement practices, involving outsourcing, panels and tendering, have failed to leverage the quantum of technological innovation available whilst simultaneously managing risk.

In this model the ‘governance layer’ is placed on the vendor as opposed to the solution. Tendering processes can stifle innovation through proscription and new approaches are discouraged due to the lack of reference-ability.

Are government organizations better placed to learn how to more effectively consume innovation than become innovative?

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Government leaders should identify, mitigate and eliminate blockages and friction through the refinement of the governance model and business processes. There is much that sustaining innovation can achieve in this regard. Importantly, an organization can and should become better at consuming innovation to manage downside risks.

What to do, if you’re a leading player in a radically changing
market?

“Found or acquire a subsidiary company with the right values and processes, equip it with the necessary resources, then let it do its thing.” more (pdf)>

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