Transformation Dynamics Framework
Digital and business transformation is not a new. But the pressure and the rate of innovation is accelerating and causing a massive value migration. Still, many organizations struggle with transformation initiatives. Why?
Innovation has always been on the agenda for companies and many public sector organizations. Though in recent years a new buzz word has been making the rounds: “Digital Transformation”. And soon the sibling “Business Model Transformation” came up. The two seem to go together hand-in-hand these days.
The stories about disruptive technologies and business models are coming in at a faster rate and they are shaking up the industries left and right:
- “….as-a-service” has become a new mainstream business and pricing model. Event for razor blades.
- The big online platforms absorb the ad spending away from traditional media.
- Block-chain: Bitcoin debuts as a new currency which seems to make national banks irrelevant or ineffective.
Just to mention a few.
For many leaders and policy makers this must have come across as a new marketing tactic and this would probably pass soon. So, they thought. You can read this from the many reports which ask leaders about their priorities on their leadership agenda. Digital and business model innovation have now become a top priority.
But what makes transformation projects so special and so challenging, besides the increasing pressure and accelerating pace of innovation?
In our practice we see some patterns emerging:
- Overall, a large portion, if not the majority, of projects fails and have to be restarted. This exposes an increased risk for competitiveness and for organizational health.
- The new product development projects have a high chance of running massively over plan.
- Once the new product is ready to hit the market the next wave of challenges builds up: product adoption is a struggle.
But why these challenges? Have companies not learned to deal with projects?
Well, yes and now. It appears that the new breed of projects is challenging the organizational capabilities much more than in the past. We will unpeel the onion of transformation projects one by one.
- Project Dynamics: New product development (often on top of the running business).
- Adoption Dynamics: What drives the famous S-Shaped curve we all love to see?
- Organizational Dynamics: How to win people and mobilize the organization?
- Service Dynamics: Sustaining growth while “productizing” services.
- Leadership capabilities
And we will probably discover and surface more topics which are connected.
A new mindset and mental model is required in order to stay on top and lead digital transformation initiative successfully. Project management , quality control and an agile, lean approach is not enough, it is a given.
More importantly, leaders for the current and next generation need to focus on advancing their mental models and cultivating system leadership skills.
Trying and testing different approaches, strategies and scenarios in the real world is very costly. An alternative is to go into a “flight simulator” mode and explore the dynamic consequences of actions from different perspective and through simulations. This helps not only to answer different and often better questions, but it is a safe and cost-effective environment to learn and to select appropriate strategies and policies.
In October 2016, WITTIGONIA is starting a new initiative to investigate these issues further. We are launching an Insights Survey to better understand the vital few issues. And we have launched a new Briefing & Coaching center which provides a new perspective on the issues.
Participate in the WITTIGONIA Insights survey about “Transformation Dynamics and Impact” to get the full report and free-of-charge access to the Briefing and Coaching Center.
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