< insert Arnold accent here >
Arnold was right in his Terminator movies. And Arnold is right in his passionate post about clean energy which gave this post inspiration.
All joking aside. I'm going to try something, hopefully more effective, in persuading your digital mindset: I understand all of your concerns, but MAYYYYBE I can help convince you of a NEW way and a new decision, based on new alternatives and a new story?
Every time I speak with executive C-Suites about our quest for their digital business transformation, I get; "Wow, we really need to be paying attention to this."
Then, sometimes... CRICKETS. For months. Sometimes years. (well, not so much *years* anymore)
Then... something happens. Something drastic. Something that will hold you back... before you can move forward. ARGH!!
Companies generally try new approaches or digital technologies ONLY when they see their peers doing so. Being REACTIVE in the Digital Age needs to come FASTER! (If you're even playing that game. I hope not.)
I can tell you, your competition IS CHANGING and you are BEHIND!!
There are always a few of you, asking why you should care about enterprise change, digital technologies, software, or questioning the reality of economic and societal movements.
I want you to know that I hear you. IT IS SCARY, but doesn't have to be. Even those of you who say digital business transformation is too complex. Even those who say, "this software eating the world thing is all crap". (Most enlightened executives don't actually say these things. :))
I've heard all of your objections before, and now I have three (3) questions for YOU.
Let's put organizational barriers — such as mindsets that resist change and conservative cultures that base decisions on perceived risks — aside for a minute. In fact, let's assume you're right and there is no Digital Age renaissance.
FIRST — do you believe that 52% of the Fortune 500 firms since 2000 — who are GONE NOW — were too big and powerful to lose?
Every day, digital startups who are leaner, faster, and more agile raise MILLIONS of dollars and are stealing your business and killing you on profit margins. Do you accept this as your slow and painful demise?
Now, my SECOND question — do you believe throwing more humans at problems and moving at a slower pace is the way of the future?
Besides the fact that the world is quickly digitizing everything, everyone else agrees, including Gartner Research, who predicts that by 2020, 75% of companies will be digital businesses or preparing to become one.
What's your game plan being that only 30% of those predicted will succeed?
I, personally, want you to have a plan and start executing on it NOW!! I don't want you to be like the other companies who's businesses and/or strategies were flattened by digital disruption or the "Uber-ization" of their business models or segments:
- Circuit City
- Barnes & Noble
- and many more....
That's exactly what is going to happen to companies WHO ARE NOT starting their transformation journey. Or, even paying attention, for that matter.
YOUR digital future is your best investment right now, and anyone who tells you otherwise has been living in there parent's basement somewhere.
In fact, results from a recent Harvey Nash CIO Survey, with 3,700 technology leader respondents, reported CEOs are focusing IT for generating revenue (66%) as opposed to cutting costs (34%).
THIS IS ALL THROUGH DIGITAL TECHNOLOGIES!!!
HOW? It's all within your unified value system:
- Your business models.
- Your new products and services.
- Your enhanced customer experiences.
- Your digital platform to operate leaner, smarter and more efficient than you ever could have imagined.
Move now and you will capture more opportunities, outperform, make more money, and will be more profitable than those peers!
More importantly, that survey found ONLY 18% of CIOs are leading digital within their organization. While this is an increase from 10% in 2013, THIS IS STILL TOO LOW!!
I have a FINAL question, and it will take some awareness of who you are today, and who you’ll need to be tomorrow.
You get one of two strategies. Strategy #1 is with the same people, same approaches, and same solutions EVERY-Y-ONE else is using, including what YOU (most likely) have somewhere inside your organization. They move just a LIIIIITTLE bit faster than you do, and aren't much more efficient or effective.
Strategy #2 is a digital business transformation firm, completely different thinking, with non-traditional approaches and new products (think: Docio™). Both strategies have embraced a digital mindset, but there's only one that has TRULY EVOLVED and can deliver measurable strategy through execution. They have a fully-baked business model that can REALLLLLY deliver their brand promise to you. Sounds nice, right?
It's like lawyers, CPAs or any other vendor. There's so many, but ALL VERY DIFFERENT. There's only a FEW reallllly great ones, with real experience, real expertise, and real focus on who they serve. And, a real niche offering.
I want you to pick a WINNING strategy. How would you know which is the RIGHT one? You have to choose the one that will keep your business alive, and THRIVING! But remember, the one you choose, is the one you have to stick with. You cannot turn back, because in a digital world, speed and execution are all that matter — if you fail at either — you’re done.
I'm guessing you'll choose Strategy #2, with the digital business transformation firm, right? Strategy #1 is a fatal choice — because really — no one has time to lose. Who would ever want to slowly go down in flames being recognized for 'business-as-usual'?
This is the choice 80% of the market is making today.
And, please worry, this is changing... FAST!!
To say it differently, companies shouldn't give a damn about IT cost control right now.
Your MORE DIGITAL COMPETITORS are spending upwards of 20% to 60% of total capital expenditures on digital innovation.
Companies should be less concerned in evaluating certainty and fear — for months and years — and START MAKING THOSE BIG BETS... NOW!
Waiting for digital technologies to go mainstream and making incremental innovation doesn't matter. If you're not even working on that... TIME TO GET TO WORK!
What does matter is that 40% of businesses, unfortunately, will not exist in a meaningful way in 10 years.
That's 2025. What's your plan?
I just hope you'll join me in Strategy #2 — to your company's smarter, agile, adaptive, and more profitable digital future.
- "Cisco CEO Delivers Dire Prediction: 40% of Companies Will be Dead in 10 Years", ATG Learning, June 2015.
- "CIO Survey", Harvey Nash, 2015.
- "Why Uber Keeps Global C-Suites up at night", Upstart Business Journal, Kent Bernhard Jr, November 2015.
- "Red Hat CEO: 'A large percentage of the Fortune 500 will be left behind'", Business Insider, Biz Carson, June 2015.
So what is Strategy #2?
Tech Prediction 2016: Digital Business Transformation will be the concern for MOST executives this year.
Will they move or wait?
That is the money question that will further separate the digital leaders, reactionary followers and 'WALKING DEAD'.
Digital Leaders will proactively transform their business models and lead their segments through the frenetic pace of social, mobile, analytics, cloud, and the Internet of Everything.
There are only a few strategic firms today with the breadth of knowledge and experience that can help. My company, feature, is one those firms. We're past figuring out technologies, talent, teams and processes — that's table stakes.
It’s simple – business executives and IT leaders need to understand what they require to innovate in their business models and begin a disciplined, sustainable PROGRAM to deliver it quickly. From now on, businesses must constantly measure their digital initiatives, understand their successes and learn from their failures; and they must do it with digital experts.