The journey from transformation to evolution.
The approach to business transformation has evolved dramatically over the last 15 years alongside the development of technology. The approach taken now will determine whether an organisation and its people survive and thrive or struggle in the era of AI.
The evolution of transformation
Transformation as a concept can mean many things to many people and that meaning has evolved over the past 15 years. With the pace of technological innovation enabled through AI, the original concept of ‘business transformation’ has become outdated and has been replaced with an emerging need for continuous business evolution and human adaptability.
Then: Digital Convergence: Spectator culture
The merging of previously discrete and separately used technologies, as well as the almost 'invisible' integration and use of technologies as a part of everyday life.
Next: Digital Transformation: Participatory culture
The coupling of granular, real-time data with modern technologies to enhance products, processes, and business-decision making with customer, product and operational insights.
Now: Digital Congruence: Convergence culture
The point at which culture, people, structure, and tasks are aligned with each other, company strategy, and the challenges of a constantly changing digital landscape.
Why change?
It’s tempting to assume that AI won’t impact your industry or if the numbers are healthy now then why worry about the future when the pressure to succeed is right now.
The reality is change takes time, in particular the ability of human beings to adapt and embrace desired change takes time. If you aren’t immediately feeling the pressure you have the gift of time to get organised and start to install operating rhythms, that allow the business to flex and grow, as technology opens up new ways of doing business. All the while creating space for your most valuable asset, your people, to focus on strategic initiatives that ultimately deliver more value.
Employees demand more
The workforce of today is demanding changing working practices. People early in their careers expect to have meaningful careers in companies with diverse cultures and strong company values. Pay is not enough, flexibility is key.
This becomes even more challenging when combined with the Increased risk of losing IP as siloed working practices, such as working from home, are making it harder to communicate meaning we are not passing on knowledge and skills in the same way as once before. Cultural change is paramount to this not being detrimental to commercial success and long term sustainability.
The pace of technological change and changing face of the competition
With increasing pressure on margin, business operations are often seen as a costly and considered a poor relation in traditional models, with sales and revenue often attributed to the last touchpoint before the sale which is a typically the sales team. What Is often forgotten is the value chain that results in that end sale and the ongoing relationship and service delivery to that customer. These two things are of critical importance if a business is going to take full advantage of emerging technologies, in particular AI.
Effectiveness, agility and pace requires collaboration and operational excellence, with everyone empowered to make informed by data, all facilitated by clear direction and guardrails to keep everyone pointed in the same direction.
Customers, clients and partners have more choice and financial pressure than ever before
Customers value simplicity and easy self-navigation, with meaningful strategic interaction when they engage with a human. Technology is no longer a differentiator it’s an expectation. Customers don’t expect to pay for manual tasks and expect integrated, pacy, agile digital experiences. Agile and resilient business operations are key to delivering this expectation.
With the goal posts moved and focused on repeat purchase and customer lifetime value, the value chain and its significance has become increasingly important, as have the multiple relationships that a customer will have with a single organisation. In these models you need people to be working as a community to delight the customer from every perspective. There is a need to focus on the long term relationship with a wider range of stakeholders, and the whole organisation beyond sales need to be rewarded and motivated in a way that drives this connected behaviour.
Critical factors for successful organisational change
For any business transformation to be successful there are five components that need to be working in unison.
Moving from ‘transformation’ to ‘evolution’
Product
Customer centric, scalable & digital first.
The digital landscape requires a different approach to service design. Starting with a discovery phase that maps capabilities to a customers business needs, shaping services around our their capability but in a way that evolves with the arising business, market and category opportunities.
Tools and technology
Rationalised, integrated & modernised
Technology transformation needs to aim first and foremost to support the businesses in realising the value in their existing tech and builds on that investment with rationalised architecture that compliments not cannibalises, ensuring there is a consistency in the tools everyone is using to enable open working, shared learning and collaboration.
Processes
Agile, consistent & automated.
Moving from siloed ways of working to communities focussed on excellence in craft, promoting cross pollination of innovation and ideas promoting learning through osmosis.
Data
A democratised, shared source of data, available to all realtime.
A shared source of truth that acts as a source of continuous business intelligence and fuels collective decision making, keeping the organisation steered in the same direction without the need for command and control. This approach to data enables organisations to identify the need for course correction realtime, or equally recognise shared moments of success as they transition and transform.
People
A shared culture, open working & continuous learning & development
Working as cross-functional communities, solving for inter-operability whilst sharing and learning from the widest available lived experience. Working as the sum of your parts raises the floor, firmly securing a baseline gold standard, creating more space for strategic thought that ultimately leads to bigger and better outcomes.
Human-powered, technology enabled.
Transforming the way businesses operate to realise their unique vision in a sustainable thoughtful, connected way to create better experiences for their people partners & customers.
Learn more about how you can act to make change a positive experience for your employees.