Digital Transformation: One Giant Juggling Act

Digital Transformation: One Giant Juggling Act
SHARE
THIS



In his latest guest post for B&T, CEO of Digital Asset Ventures and co-author of Chasing Digital: A Playbook for the New Economy, Anthony Stevens (pictured below), says if your business struggles with digital transformation, then you are far from alone…

Organisations require a dramatic change in strategy to respond to new market-shaping forces.  You need to pivot your business model, while at the same time making the most of your well-known brand and client relationships.

Unfortunately, you’re up against some very well-funded start-ups. According to Crunchbase, as of the third quarter of 2017, both deal and dollar volume are at record highs since the dotcom bubble. With the number of venture funding rounds projected at 6,146, and US$60.17 billion invested in that quarter, year-on-year this represented an increase of roughly 50 per cent. Screen Shot 2018-09-05 at 2.32.14 pm

With this explosion in capital financing of start-ups, a compounding set of issues arise for larger businesses. The amount of money spent by a pre-digital incumbent to transform its current business model into a digital business model – one reliant on data, software and platforms – is a mere fraction of what start-ups invest in technology.

Start-ups get the funds and the talent

Due to the wealth-creation opportunities and innovation culture, top talent is attracted to the start-up. Glassdoor.com, where employees can review and rate employers, has found for 2018 that all of the top-ranked small- to mid-sized companies in the US and Europe were founded since 2002.

The bankrolled new models and cultural allure of start-ups are just the beginning of the many challenges you have to contend with. As we’ve seen with big tech, companies that invest in data, platforms and systems of intelligence will become more dominant. It follows, then, that those companies that own these capabilities are likely to be more successful. But what about those companies that don’t? Will they survive?

Contending with the forces at play

Over the last decade, platforms of all different shapes and sizes have started to change the nature of many industries. Whether you are in retail, manufacturing, business services, health or resources, you will have noticed platforms play an increasing role in customers’ buying habits and expectations.

For example, with accountants, there was traditionally a separation between the tool (the accounting system), its configuration, and the professional advice or accounting work itself. However, over the last 10 years, accounting systems have moved online, making them easier and cheaper for customers to use, as well as giving the software provider access to a vast amount of customer data.

The forces of digital disruption are impacting the professional service industries, as well as the majority of other industries. So, what can you do about it?

The castle and the moat

In order to move forward, there are two key concepts you need to understand. In his 1996 letter to shareholders of Berkshire Hathaway, professional investor and multibillionaire Warren Buffett said: ‘In business, I look for economic castles protected by unbreachable moats.’

This quote highlights two concepts that are as pertinent to your new strategy in the digital age as they were when Berkshire Hathaway’s stock was riding the mid-1990s economic boom:

Your castle: Your castle refers to the drivers of growth in your business. In short, how you make money.

Your moat: Your moat reflects what is unique about your business and how this helps you take a sustaining and dominating – or, dare we say, monopolistic – position in the market. Your moat is essentially your competitive advantage.

Three horizons of growth

Along with a focus on your castle and moat, a successful strategy should be mapped into three horizons of growth – each running in parallel and focused on a different term of the investment. For example, Mehrdad Baghai and Steve Coley’s book, The Alchemy of Growth, provides a tool with three contemporaneous phases, allowing companies to manage for future growth without killing their core products or services in the short term.

Each horizon represents a time period over which you expect returns or a material impact on the financials of your business, with the idea of investing in new products or services without impacting current performance.

The benefit of adopting a multi-horizon framework is in helping you to steer the change process within your company by breaking down execution into manageable chunks. This allows you to plan and manage the investments related to your strategy as it develops.

Please login with linkedin to comment

Anthony Stevens Digital Asset Ventures digital transformation

Latest News

Hands using mobile payments, Digital marketing. Banking network. Online shopping and icon customer networking connection on virtual screen, Business technology concept
  • Media

IAS Report: Australian Digital Advertisers Experience Higher Brand Risks Across All Buying

Today, Integral Ad Science (IAS), a global leader in digital ad verification, released its Media Quality Report (MQR) for H2 2020, providing transparency into the performance and quality of Australian digital media, alongside global comparisons. Integral Ad Science’s H2 2020 MQR highlights brand safety, ad fraud, and viewability trends across display, video, mobile web, and […]

Quintis Appoints Illuminate As Global PR Partner
  • Media

Quintis Appoints Illuminate As Global PR Partner

Quintis Sandalwood has appointed Illuminate as its global PR partner following a competitive pitch process. Proudly Australian, Quintis produces and markets Indian Sandalwood oil, logs, chips and powder products across the world to major companies in industries such as fragrance, aromatherapy, cosmetics, handicrafts and Traditional Chinese Medicine industries. Illuminate will be responsible for a global communications […]

Image lead story Even More Pics From The 30 Under 30 Awards!
  • Media

Even More Pics From The 30 Under 30 Awards!

Hopefully the weekend has given everyone enough time to recover from B&T’s 30 Under 30 awards and prepare themselves for our official photo dump! We shared some of the highlights last week, and now you can peruse all of the pictures taken on the night. Thank you to everyone for attending this year’s awards, and […]

by B&T Magazine

B&T Magazine
Kinderling Kids Streams Ahead With Direct-To-Consumer Offering
  • Marketing

Kinderling Kids Streams Ahead With Direct-To-Consumer Offering

Kinderling Kids Radio (Kinderling) has announced the completion of its move from DAB+, where it launched six years ago, to a direct-to-consumer streaming model, accessible online or through the Kinderling Kids iOS and Android app. The Parent Brand, the parent company of Kinderling Kids and Babyology, made the decision to shift as streaming and on-demand […]

RUN Take On The Flu
  • Advertising
  • Campaigns

RUN Take On The Flu

Globally award-winning, indie agency RUN, have launched the New Zealand National Influenza Immunization Campaign, running over the next 8 weeks across TV, digital, social, print and press.

Audika Says Stop Ignoring The ‘Whats’ And Get A Hearing Test, Via Ward6
  • Campaigns

Audika Says Stop Ignoring The ‘Whats’ And Get A Hearing Test, Via Ward6

Most people over 60 stay on top of their health with regular check-ups. Whether it’s eyes, prostate or breasts, they realise at their age it’s important. But one that gets ignored is hearing. They’d rather live with gradual hearing loss, and continually ask what, huh, pardon or sorry until it seriously impacts their life and […]

Connecting Plots To Handle [yellow tail] Social Media Following Account Win
  • Media
  • Technology

Connecting Plots To Handle [yellow tail] Social Media Following Account Win

Creative communications agency Connecting Plots has been appointed by Casella Family Brands to handle the social media accounts for [yellow tail] wine in Australia. The win follows an audit of the Casella Family Brands social activities, which led to [yellow tail] rethinking its approach to social media and how it aligns with its overall marketing […]

HERO’s B.B.E Wins v2food Account
  • Media

HERO’s B.B.E Wins v2food Account

v2food, has appointed HERO’s B.B.E as the lead strategic and creative agency for the brand following a competitive pitch process. v2food is an Australian pioneering food technology business with a global vision to feed the planet sustainably. After launching nationally in 2019, v2food has been on a mission to offer Australians an easy alternative to meat […]

Rows of coins isolated on white background. Finance and banking concept.
  • Media

Magnite And Adform See Monetisation Uplift Using First-Party Identifiers

Magnite (Nasdaq: MGNI), the largest independent sell-side advertising platform, today announced it has been working with Adform, the only independent global ad management platform covering all aspects of the digital campaign lifecycle, to scale first party identifiers in privacy-safe ways. With the pending elimination of third-party cookies, the industry must establish future-proof identity solutions for publishers and buyers.

Martin Box Named Co-Chair Of Commercial Producers Council
  • Media

Martin Box Named Co-Chair Of Commercial Producers Council

The Commercial Producers Council is delighted to announce the appointment of Martin Box (pictured) as its new Co-Chair, effective immediately. Box, Head of Production at Airbag, joins Co-Chair Pip Smart, and fills the vacancy left by Lucas Jenner who steps aside from the Co-Chair role after four years of service, in accordance with the CPC’s […]