In the July IDG survey, 53% of CIO respondents said that their top digital business objective was to “maintain overall revenue, given market shifts.” 53% also sited the need to “drive new revenue” up from 48% in 2018. CEOs and Boards are increasingly looking to digital technology as the primary source of new business growth and profitability.
What if everything you were taught about creating and sustaining competitive advantage is no longer true? Most leaders of well-established businesses were taught that the key to creating sustainable competitive advantage was erecting large barriers to entry into their markets by scaling the size and reach of their companies.
Most senior leaders find comfort in believing that in times of severe market downturns cutting costs and hunkering down is a prudent course of action. The trouble is the data supports the totally opposite course of action.
Historically companies believed they could create sustainable competitive advantage by owning and controlling the assets needed to build high barriers to entry into their markets.
Last year, a McKinsey study documented that companies spent more than $1.3 trillion on digital transformations 70% of which failed to reach their desired outcomes which means that over $900 billion went to waste.
For businesses of any size to be successful today, they need to think and act like a software company. Whether they are actually developing software or just deploying and leveraging it, they need to configure their business model to operate like one.
The frequency and pace of change from digital disruption necessitates that companies can no longer rely on traditional planning and decision-making models. Simply put, they are too slow, too rigid and too process-driven to adapt to the new speed of business.
Michael Simmons has an unbridled passion for teaching people how to learn. In his work with successful leaders he has come to the following conclusion: “At the highest levels, learning isn’t about something you do to prepare for work. Learning is the most important work. It is the core competency to build. It’s the things you never delegate. And it’s one of the ultimate drivers of long-term performance and success.”
To successfully compete as a digital enterprise requires starting at the top with the CEO and Board agreeing on the right digital strategy for the company and a game plan to implement it. That is virtually impossible to do if the majority of board members are not digitally savvy.
Talk to anyone working today whether in a startup or a well-established Fortune 500 company, and they will tell you the same thing – “I’m working so hard but there aren’t enough hours in the day for me to do my job.” It’s not just that they are spending more hours working, but it’s also that…