Customer centricity, AI, automation, agility: These buzz words saturate all CIO forums today, and meanwhile every IT organization is under immense pressure to deliver some level of innovation with the hot-topic technologies.
The key concept not usually mentioned explicitly, is the future of enterprise. In this new era in which everyone is talking about the digital approach and how to sell services or products without investing in manufacturing or assets, with a technology framework or hub you can connect customers to sellers and profit from it. Obviously there are well known examples, such as AirBnB and Uber, but take a company like RentHop, which created a platform to search for apartments, and is creating value for New York landlords and renters.
Despite the countless media and entertainment options available today from your TV, smartphone or tablet, AM/FM radio continue to be the top source of weekly reach according to this Nielsen report. This is especially so, because users continue to tune in during their road trips and daily work commute.
This is an example of how an old technology / business models plays an important role and needs to be strategized, rather than just jumping in to a new one. At this point, I hope you’re thinking, ‘how can we use this analogy at my company?’
The future of the enterprise will be a mix of old business models and new approaches to current issues, in addition to customer visibility. The enterprise of the future will be based on 3 pillars:
The for most business leaders, focusing exclusively on innovation without regard to improving the core is the start to the process of nailing your own coffin -- in 5 to 10 years the competition will pass you by.
Digital Transformation Framework: A digital transformation framework is a foundation for the organization transformation and how to prioritize the efforts and investment to support a unique future vision. Rethink your actual transformation and reshape your organization based on how your company will be positioned in their 3 future pillars (Improved Core, Connectivity, Digital Arms).
Core Platform: To achieve this future vision of the enterprise, a modern core platform or an ERP that combines old and proven scenarios with the newest approaches of IoT, AI and customer centricity, is essential. Gartner illustrates the concept of postmodern ERP well, defining two categories of ERP strategy: 1) Administrative, which focuses on financial, HCM and indirect procurement; and 2) Operational, which focuses on manufacturing and distribution.
Agility: Act fast, a Forbes statement from 2015 predicted: “By 2018, 67% of CEO of Global 2000 companies will have digital transformation at the center of their strategies.” Today, all companies are scurrying around to be at their digital “being,” but a lot of them are struggling and slow-moving due to inner pressures, government or lack of strategic vision.