Digital Business & Information Technology
What does it mean to become digital? Companies in all industries are building online businesses, enabling new customer experiences, experimenting with “big data” and seeking advantage in a digitally enabled business world.
They have tried reengineering their processes; they have set up new technology platforms for customer engagement and back-office efficiency. But these efforts have not yet had the impact that they should. Instead of reengineering, they need reinventing. They need to conceive of their business freshly, in line with the capabilities that digital and business technologies can give them, connecting to customers in ways that have not been possible before.
A company’s digital business model describes how the enterprise interacts digitally with its customers to generate value. In the aftermath of the recent global economic slowdown, companies have been searching for ways to cut costs while at the same time grow capabilities that are core to their future growth. Traditionally, Digital Business & Technology has been viewed as a cost centre for most companies, one of the first areas where cost cutting would occur, due partially to the enormous complexity that was created within the Digital Business & Technology organisation over the years. It is time for companies to create an agile digital business model before their customers leave them behind.
An agile digital business model will often challenge the status quo in the company: It can cause an organisation to change how work gets done, who does the work and where it invests to best serve customers online. An agile digital business model often cannibalises or changes the company’s physical channels. Moving forward, as organisations have been forced to cut costs and look strategically at where the company is going, Digital Business & Technology has the opportunity to take a strategic role of future business success.
“Most strategy firms talk about IT but rarely understand the significance of IT – you stand out from that crowd.”
COO of an Integrated Energy Company