The Ultimate Pivot: What It Is & How It Can Supercharge Your Business’ Digital Transformation

The Ultimate Pivot: What It Is & How It Can Supercharge Your Business’ Digital Transformation

Anthony Stevens (pictured below) is the founder and CEO of Digital Asset Ventures and co-author of Chasing Digital: A Playbook for the New Economy. In this guest post, Steven’s talks the value of pivoting when transforming any business digitally..

The word ‘pivot’ denotes a rapid change from one strategy to another, which quite often involves changing your business’s original strategy, its target market and its pricing. Most pre-digital incumbents don’t pivot, and perhaps don’t even know how to.

0

The pivot is mainly about risk and reward. Those making the decisions recognise that to continue as they are will yield a lower likelihood of long-term success. When a start-up pivots, it effectively abandons everything to do with its past strategy and approach in favour of a new direction.

It makes sense in this context, as there isn’t much for the start-up to lose, and keeping both strategies running in parallel would be an expensive distraction and would likely create confusion for prospective customers. But for an established business, the pivot requires deeper consideration, as millions (or billions) of dollars in revenue and thousands of jobs may be at stake.

How do you pivot with losing momentum?

So, as the leader of an established business, the question you need to ask is: how do we pivot without compromising our entire operation? A successful pivot would, in the medium term, mean changing the nature of the product or service offered to meet new and emerging demands, while in the short term continuing to exploit current resources and investments.

It becomes a juggling act of sorts that involves digitally optimising your existing economic engine, so as to squeeze as much as possible out of it, while building out your new economic growth engine to meet new demands. I refer to these two engines as Engine A and Engine B. The idea is to serve your current customers while also building out the capabilities to meet the needs of your future customers, even if these sets of customers are the same.

From A to B: Why two engines are better than one

Innovation consultant Scott Anthony refers to this approach as dual transformation. It is essential to make the distinction between your Engine A and Engine B, because monolithic transformation is simply too big a task when you’re dealing with thousands of employees, expectant shareholders and legacy systems. This twofold approach has its own challenges and complexities, but will help you create an organisational design that remains relevant well into the digital future.

Two engines are better than one if you want your business to stay in the air. Over time, resources should move from Engine A – your current economic engine – to Engine B, which is focused solely on creating new revenue streams. This will help drive scale.

There are four key areas you need to focus on with regard to Engine B:

  1. Support and empower your Engine B team. While your Engine B team should have complete autonomy, it should also leverage the capabilities, IP and resources of your core business. Your objective is that Engine B will eventually become your primary economic engine, so make sure you give it the right fuel to get out of first gear.
  1. Software will be at the heart of your value and delivery model. Software allows your business to scale exponentially and allows people to focus on high-value activities, such as customer relationships.
  1. A data-driven leadership mindset is key. Data’s ability to help drive operational performance or create new revenue streams is critical. Think about data first and everything else afterwards.
  1. Start on the demand side of your business. It has never been easier for your competitors to reach your customers, and for your customers to buy from your competitors. Therefore, it is now more critical than ever to focus your Engine B on your end customer.

 




Latest News

NAB Launches Latest Take On “More than Money” Via TBWA\Melbourne
  • Campaigns

NAB Launches Latest Take On “More than Money” Via TBWA\Melbourne

NAB, in partnership with TBWA\Melbourne and Mindshare, has unveiled its latest campaign dubbed “Wrangle Your Money”. The national campaign demonstrates how NAB is supporting and empowering customers to make better financial moves. As part of the “More Than Money” brand platform, the latest work comes at a pivotal time as the country continues to grapple […]

Activation Union Hires Bree Mankin As Managing Partner
  • Media

Activation Union Hires Bree Mankin As Managing Partner

Activation Union is thrilled to announce the appointment of Bree Mankin as Managing Partner. In this pivotal role, Bree will spearhead the agency’s growth initiatives and client strategy, leveraging her extensive experience and innovative approach in delivering exceptional results for her clients. With over two decades of experience in marketing and communications, Bree is a […]

Toyota Launches Integrated Electric Vehicle Campaign Via HERO
  • Campaigns

Toyota Launches Integrated Electric Vehicle Campaign Via HERO

Toyota Australia has launched its highly anticipated new all-electric vehicle, the bZ4X, on Australian shores through a nationwide integrated campaign. Spearheaded by a big spot, the campaign was created by independent creative agency HERO, which sees a typical EV sceptic named Barry behind the wheel of an all-new Toyota bZ4X much to the surprise of […]

Canva Launches First Ever Podcast: Design Surfaces
  • Media

Canva Launches First Ever Podcast: Design Surfaces

Canva has announced its very first podcast: Design Surfaces. Covering all areas of design, from brand campaigns to UX flows, the podcast digs deep into the intricate parts of designers’ brains to unearth valuable insights, unique perspectives, and what makes them tick. The Design specialty at Canva is made up of some of the most […]

SBS Launches Development Fund To Find Australia’s Next Top Documentaries
  • Media

SBS Launches Development Fund To Find Australia’s Next Top Documentaries

SBS is searching for its most daring, unflinchingly fearless and boundary-smashing factual format yet, issuing a call out for impactful ideas for new documentary series unlike anything seen on Australian screens before, with up to $50,000 in development funding on offer. Announced this morning at the Australian International Documentary Conference (AIDC) in Melbourne, SBS is […]

Resolution Nabs Sarah Truong From PHD
  • Advertising

Resolution Nabs Sarah Truong From PHD

Full-service media agency Resolution has appointed Sarah Truong as head of investment to lead the agency’s investment product. Sarah joins from PHD where she was Group Investment Director for half a decade. With 14 years’ experience in the media industry including seven years at media agency, Carat, Sarah a proven track record for delivering results-driven […]

Brisbane Unveils Bold New Tourism Campaign
  • Campaigns

Brisbane Unveils Bold New Tourism Campaign

Brisbane Economic Development Agency (BEDA) has launched a new domestic tourism campaign, Brisbane Favours the Bold, this week, appealing to those who search for the unexpected to discover the new Brisbane. Created in partnership with VML and dentsu Queensland, the campaign aims to redefine perceptions of Queensland’s thriving capital, strengthen awareness of Brisbane’s leisure offering, […]

Elle Returns To Australia
  • Media

Elle Returns To Australia

Are Media, Australia’s leading omnichannel content company for women, today unveiled the keenly anticipated first issue of the new ELLE Australia magazine. The 244-page Bright Young Things issue – featuring actor Sophie Wilde on the cover – clearly stamps ELLE Australia as the fashion bible for smart, stylish Gen Z and millennial women who love […]

Potential Fallout For The Sydney Roosters In The Wake Of Racial Slur Allegations
  • Marketing

Potential Fallout For The Sydney Roosters In The Wake Of Racial Slur Allegations

The Sydney Roosters are facing a huge amount of fallout over allegations that Spencer Leniu made an on-field racial slur against Broncos player Ezra Mam in yesterday’s Las Vegas season opener. Mam filed an official complaint against Leniu after the Roosters prop allegedly called the Broncos five-eighth a “monkey” on the field. Leniu tried to […]

Nominate Your Marketing Heroines: ADMA Celebrates Women’s Achievements On International Women’s Day 2024
  • Marketing

Nominate Your Marketing Heroines: ADMA Celebrates Women’s Achievements On International Women’s Day 2024

To celebrate International Women’s Day, The Association for Data-Driven Marketing and Advertising (ADMA), has launched a new initiative to honour and spotlight the dynamic women in the marketing sector across the country. Lead image: ADMA Website This year, as the world embraces the theme #InspireInclusion for International Women’s Day on March 8, ADMA is asking […]

Nine.com.au & Drive Join Forces To Launch P-Plate Drive Safe Campaign
  • Campaigns

Nine.com.au & Drive Join Forces To Launch P-Plate Drive Safe Campaign

With the Easter break historically one of the busiest on our roads, Nine.com.au and Drive today launched a month-long campaign to raise awareness of the importance of defensive driver training courses. Too many young drivers are killed or injured on our roads each year. Younger drivers are the most overrepresented group in this tragic statistic, […]