The last few months have been full of bad news for some of the organisations currently recognised as the most innovative firms on the planet. Netflix has been losing subscribers, Amazon’s revenue growth is slowing dramatically, and Tesla now has serious competition in the EV market, with its dominance beginning to wane. In Australia – my home country – some of the “fintech” banks have closed their virtual doors over the past six months, leaving the market to the traditional players.
And many of the traditional businesses are turning themselves around. Foxtel, the “legacy” cable TV provider in Australia, has grown its subscriber base by 19% off the back of its streaming services – where subscriber numbers are growing at over 60% YoY. ComfortDelgro – a transport provider based out of Singapore – is seeing its revenue start to increase again after being hit hard by digital competitors and the pandemic. CBA’s “Ceba” virtual assistant is winning plaudits in Australia and globally.
It’s Not Too Late to Catch-up!
In many respects, the fact that the digital disruptors got SO far ahead is an indication of just how slow the rest of the market was to respond, and a credit to the significant investments these innovators made to get ahead. But now that the rest of the market is catching up shows that there is no secret sauce when it comes to innovation. What Uber, Tesla, Amazon and every other digital innovator has done is replicable. Your business just needs to make the necessary changes to give you the ability to catch up to the digital innovators in your industry – do it well and you will even keep up with them or get ahead. And innovation is the leading business priority for most organisations today!
What all of the digital disruptors did fifteen years ago, and many other businesses have done since then, is develop the ability to create and improve digital customer experiences at pace. Nearly every customer experience is digital – at least in part. So creating great digital experiences will go a long way to creating great customer experiences. Sounds easy right?
However, what this actually means is they changed their culture, structure, KPIs, technology, skills and the nature of their business. Many organisations have beaten the path to becoming digital businesses – in fact, it is a well-worn path. When you set off on the journey you are no longer taking risks or heading out alone. There is a very clear playbook as to how to become a digital business today.
What Does a Digital Business Look Like?
If you are part of your organisation’s tech team and wondering how digital your business is, ask these questions:
- Do you mainly deploy new technology services with the Waterfall project methodology?
- Do all of the development work with the IT team (and not in business or customer teams)?
- Does it take months or years to deploy new services?
- Are your KPIs the same as they were 5-10 years ago?
If the answer to some or all of these questions is YES, then it is likely that you are working for a business that will not catch up with or get ahead of your competitors. You might have a few initiatives that see you make some ground on them – but innovation today is not about leaps and bounds – it is about continual improvement. If you catch up today but don’t have the ability to continually improve, you will have fallen behind again tomorrow…
The good news is it is never too late to start this journey. It typically starts from the top of your business – the CIO cannot make the entire business agile. The head of the digital cannot change the culture of the entire organisation. But the IT and digital teams can get the ball rolling by changing their structure and work processes. Start by moving some developers into the Customer Experience team (if you have one!). Stop funding projects and start funding squads, tribes and teams. Structure the team around the customer journey – or at least make it easier for customers to get value from the digital assets and services you offer. Hopefully, someone will notice the fact that the tech team is helping a business unit or team to operate with agility and they’ll start asking why they cannot have that same ability?
And by then the ball is rolling down the hill and you are on your way to being a digital business – and on your way to giving customers the products, services and experiences they demand today and tomorrow.