Cloud computing, mobile enablement, personalisation, gameification, data analytic’s and new business models all drive elements of the start-up industry today. If fact, if someone manages to link some or all of these new concepts together, with a disruptive business model, brings the idea to a venture capitalist, and bingo your very own Uber.com.
That might be well and good but we all know that, apart from a couple of really good new ideas, these companies have a small window to make their presence known and make the ROI required to keep the VC’s happy. But lets ignore them, lets look at traditional organisations and try to understand why they would want to become “digital”.
Why become digital?
Becoming digital doesn’t mean just putting stuff on-line, it’s much more than that. Digital gives organisations the start-up fraternity’s ability to shift quickly based on customer demand, so more traditional organisations need to do the same, but why?
drive demand from users and customers to have a massively personalised experience in everything they do is over-running organisations like a tsunami at the moment. Brand loyalty is shifting to “it’s all about me” and customers don’t hold on to brands anymore as technology has enabled switching company to become simple.
This disruptive customer requirement became news worthy when uber was released. People weren’t ready for it, they didn’t understand it, 100 year old firms who know what the competition were doing, down to who they were hiring, didn’t see it coming. Essentially the start-up ripped that carpet from right under them, the response, they went on strike! A good solid British 1980’s answer to a problem!
This is exactly why large and traditional organisations NEED to be more “start-up”, have an Agile business model that will allow them to protect there business when this disruptive players tug on the mat under there feet yet importantly, they also need the technology to support that model and have the fundamentals in place now to allow them to react.
In my next post i’ll be looking at how organisations actually become more digital and where it should begin, but thought I should start the why discussion first…….