Growing from the core to a digital organization
Digitization of products, services and operations can help organizations achieve double-digit growth. For large companies – from retailers, insurance companies, and energy companies to media conglomerates – this means potential extra revenue of tens, to hundreds of millions of euros. In order to really extract that value, thorough self-knowledge is required.
In their efforts to develop digitally, organizations face the challenge of bridging three gaps: a gap between business and technology, between strategy and operation, and finally between exploitation and exploration.
Business and technology must always be closely aligned in the digital world. You can greatly improve that alignment with Agile working, but that usually does not extend to the second gap; anyone who applies the Agile methodology to operational teams may lack strategic focus. The optimal digital organization is able to bridge both gaps.
In a large B2C organization for which Anderson MacGyver recently completed a project, 38 percent of revenue comes from digital products and services. Naturally, the organisation works in Agile DevOps teams, using external and internal technology platforms. Nevertheless, insufficient speed was achieved in terms of improvement and renewal of the service provision to customers.
The strategic issue turned out to be twofold: the customer focus, growth focus and drive to outperform the competition was strongly present in the various business units, but the technical employees were directed based on daily performance, continuity assurance, security and cost savings. In result, these two worlds did not align enough to realise a sufficient degree of acceleration digitally within the organization.
“Business, management and IT must become more ‘in sync’. Paramount to achieving this is insight into one’s own business activities. What is the added value that you provide as an organization (for customers)? Do you provide a commodity service for a low price, or are you delivering an exclusive niche?”
Setting up a company strategy for a digital organization
As Anderson MacGyver, we have the experience of digital transformations in completely different organizations and sectors. Although the perspective and execution differ per case, the approach is roughly the same.
First, all business activities are classified – from a strategic perspective – on a canvas; the operating model canvas. For each activity, technology and business are brought together within multidisciplinary teams at strategic, coordinating and executive level. Within a digitally mature organization, all teams deliver a type of value that is in line with the company strategy.
Every nine to twelve months one central theme is communicated from the management. That gives a strategic focus on top of Agile working in the rest of the organization.
Consequentially, the gap is bridged in three areas, which enables you to really focus on delivering added value for customers, and ultimately, for yourself. Regardless of the industry.
Do you want to know more? Click here for our newly published whitepaper on Multimodality