Winning Strategies for the Fourth Industrial Revolution

For executives, transforming an enterprise is always difficult, but when an enterprise is highly profitable - digital transformation is even harder. The temptation to follow the maxim, “Don’t fix what isn’t broken,” is just too compelling.  "When you average 8% same-store sales [growth] for 35 years, it can breed a sense of, 'Why do we need to change? Things are working,'" John Mackey, CEO of Whole Foods, said in a recent interview with The Wall Street Journal.  Today, however, Whole Foods is struggling to compete with other lower priced grocery stores that have embraced organics and healthier foods.  If you take your eye off the game for a second, consumers will change directions on you.
 
The challenge enterprises are faced with today is that digital technologies are changing the way consumers behave faster and in different ways than executives have ever seen before.  Today’s profits can hide or mask the serious problems of tomorrow.
 
Competitors can’t compete, and leaders can’t lead if they don’t know the rules of the game.  Understanding how the game is played, and how points are scored, are key to any competition.  In the age of digital transformation these are some of the key rules to learn in order to score:
 
  1. Data is the modern commercial playing field, information dominance is your goal, those that can “act and with speed” have the advantage over those which cannot.
  2. Advantages in the speed of data-driven decision-making, automation, robotic process automation will dictate the winners of tomorrow.  
  3. Complexity is the enemy of agility, and acts as poison from the past.
  4. It takes an optimized Information Logistics Systems (OILS) to support real-time digital interactions.
  5. Faster operational tempos and information logistics systems – open up a plethora of new business opportunities and business models.
  6. Precision and real-time data beats estimates and conjecture.
  7. Digital interactions require real-time business operational tempos.
  8. Bad data will make the smartest systems dumb.  
  9. Competitive advantages from new technologies depreciate quickly – so act fast.
  10. Situational awareness enables management to focus on the knowns, rather than the unknowns.
  11. Demand for real-time digital customer interactions increases the need for contextually relevant and personalized user experiences and digital transformation across all systems and processes.
  12. Data has a shelf life, and the economic value of data diminishes quickly over time, and the more data that is collected analyzed and used, the greater the economic value it produces in aggregate. In addition, the economic value of data multiplies when combined with context and right time delivery.
  13. Digits can be changed faster than the human mindset.
These rules not only help you understand how to compete and win, but they should also guide enterprises in their development of a digital transformation doctrine – a guiding and unifying statement as to the purpose, desired effect and outcome that is wanted.

 Follow Kevin Benedict on Twitter @krbenedict, or read more of his articles on digital transformation strategies here:

  1. Digital Transformation - Mindset Differences
  2. Analyzing Retail Through Digital Lenses
  3. Digital Thinking and Beyond!
  4. Measuring the Pace of Change in the Fourth Industrial Revolution
  5. How Digital Thinking Separates Retail Leaders from Laggards
  6. To Bot, or Not to Bot
  7. Oils, Bots, AI and Clogged Arteries
  8. Artificial Intelligence Out of Doors in the Kingdom of Robots
  9. How Digital Leaders are Different
  10. The Three Tsunamis of Digital Transformation - Be Prepared!
  11. Bots, AI and the Next 40 Months
  12. You Only Have 40 Months to Digitally Transform
  13. Digital Technologies and the Greater Good
  14. Video Report: 40 Months of Hyper-Digital Transformation
  15. Report: 40 Months of Hyper-Digital Transformation
  16. Virtual Moves to Real in with Sensors and Digital Transformation
  17. Technology Must Disappear in 2017
  18. Merging Humans with AI and Machine Learning Systems
  19. In Defense of the Human Experience in a Digital World
  20. Profits that Kill in the Age of Digital Transformation
  21. Competing in Future Time and Digital Transformation
  22. Digital Hope and Redemption in the Digital Age
  23. Digital Transformation and the Role of Faster
  24. Digital Transformation and the Law of Thermodynamics
  25. Jettison the Heavy Baggage and Digitally Transform
  26. Digital Transformation - The Dark Side
  27. Business is Not as Usual in Digital Transformation
  28. 15 Rules for Winning in Digital Transformation
  29. The End Goal of Digital Transformation
  30. Digital Transformation and the Ignorance Penalty
  31. Surviving the Three Ages of Digital Transformation
  32. The Advantages of an Advantage in Digital Transformation
  33. From Digital to Hyper-Transformation
  34. Believers, Non-Believers and Digital Transformation
  35. Forces Driving the Digital Transformation Era
  36. Digital Transformation Requires Agility and Energy Measurement
  37. A Doctrine for Digital Transformation is Required
  38. Digital Transformation and Its Role in Mobility and Competition
  39. Digital Transformation - A Revolution in Precision Through IoT, Analytics and Mobility
  40. Competing in Digital Transformation and Mobility
  41. Ambiguity and Digital Transformation
  42. Digital Transformation and Mobility - Macro-Forces and Timing
  43. Mobile and IoT Technologies are Inside the Curve of Human Time