Measuring the Pace of Change in the Fourth Industrial Revolution
Technologies help us deliver on a business strategy. Without a strategy, there is no rationale for deploying technologies. In addition, there is no rationale for digital transformation, unless there is a need for business transformation. If you believe this as we do, then strategy development will be a priority. Strategies, however, are developed under the guidance of a doctrine. The purpose of a doctrine is to create a high level understanding of what we we want to achieve with our strategy, and the concepts that must be employed to achieve it. An organization’s doctrine will guide strategy development, and the tactics needed to achieve a goal.
An example of a doctrine is, "We will be a fast follower, and excel at quickly manufacturing and delivering popular fashions." With this doctrine, the company can now develop strategies that align with the doctrine.
Many executives consider digital transformation important, but an IT issue. We, however, believe IT serves only one purpose – supporting the needs and strategies of the business. If the business doesn’t perceive a need, or have a business strategy that requires digital transformation, then there is no transformation role for IT to play. All of our research, however, concludes that organizations must be engaged in business and digital transformation or they will fail at winning in the Fourth Industrial Revolution.
Digital doctrines and strategies must come from the top, as they require an intimate understanding of the goals, doctrines and strategies of the organization, and the resources available to achieve them. Grassroots efforts to transform a company will fail, as they are too slow to compete against engaged, focused leaders.
Leaders must have an intimate understanding of how markets are changing, by how much, and the technologies that are supporting these changes. We all watched as consumers, advertising and commerce expanded beyond brick and mortar locations, to search engines, to online auctions, mobile retailer apps/websites, and now to online classified, online markets and sharing economy platforms. One thing we do know for certain, as a result of our research, is that consumers are altering their buying habits to take advantage of the convenience, market feedback and in-depth product information available in these mobile and digital markets. The need now is to measure how fast buying habits and shopping behaviors are changing, which is not easy. Many new behaviors and trends are outside of traditional measurements.
An additional challenge for leaders is measuring the pace of market change, and aligning resources and priorities to ensure we are changing, if not at the same pace, at least at a pace ahead of our competition. What units of measurement will capture the speed of change? What data sources will provide the data necessary for analysis, and how do we capture the data? Once we have a methodology in place for measuring the pace of market change, how do we then measure the pace of our own changes inside our organizations and in those of our competitors so we know how we are doing?
Download my latest report, "How Digital Thinking Separates Retail Leaders from Laggards."
- How Digital Thinking Separates Retail Leaders from Laggards
- To Bot, or Not to Bot
- Oils, Bots, AI and Clogged Arteries
- Artificial Intelligence Out of Doors in the Kingdom of Robots
- How Digital Leaders are Different
- The Three Tsunamis of Digital Transformation - Be Prepared!
- Bots, AI and the Next 40 Months
- You Only Have 40 Months to Digitally Transform
- Digital Technologies and the Greater Good
- Video Report: 40 Months of Hyper-Digital Transformation
- Report: 40 Months of Hyper-Digital Transformation
- Virtual Moves to Real in with Sensors and Digital Transformation
- Technology Must Disappear in 2017
- Merging Humans with AI and Machine Learning Systems
- In Defense of the Human Experience in a Digital World
- Profits that Kill in the Age of Digital Transformation
- Competing in Future Time and Digital Transformation
- Digital Hope and Redemption in the Digital Age
- Digital Transformation and the Role of Faster
- Digital Transformation and the Law of Thermodynamics
- Jettison the Heavy Baggage and Digitally Transform
- Digital Transformation - The Dark Side
- Business is Not as Usual in Digital Transformation
- 15 Rules for Winning in Digital Transformation
- The End Goal of Digital Transformation
- Digital Transformation and the Ignorance Penalty
- Surviving the Three Ages of Digital Transformation
- The Advantages of an Advantage in Digital Transformation
- From Digital to Hyper-Transformation
- Believers, Non-Believers and Digital Transformation
- Forces Driving the Digital Transformation Era
- Digital Transformation Requires Agility and Energy Measurement
- A Doctrine for Digital Transformation is Required
- Digital Transformation and Its Role in Mobility and Competition
- Digital Transformation - A Revolution in Precision Through IoT, Analytics and Mobility
- Competing in Digital Transformation and Mobility
- Ambiguity and Digital Transformation
- Digital Transformation and Mobility - Macro-Forces and Timing
- Mobile and IoT Technologies are Inside the Curve of Human Time