Digitalisation, an opportunity or threat
Guest blogger: Jonas Wallengren, Orange Business Services
In our previous blog we discussed the mis-usage of knowledge workers and how that are negatively affected by short comings and the 5 dysfunctions.
In this blog we will discuss digitalisation, an opportunity or threat and why this is so important for us to understand. We have invited Jonas Wallengren,
Senior Digital Business Consultant @ Orange Business Services as a guest-blogger for this issue. He will come back and present another blog later.
Digital enablement; What’s it to you?
I believe that those (like me) who work in the business of providing strategic advice have an inborn need of thinking ”As I predicted…” or “I told you so” for both good and bad reasons… For this purpose I figured it would be a good idea to share the latest digital trend spotting with you! 🙂
I’ve recently been evaluating different “initiatives” taken by companies in the wake of the “digitalization trend”. It’s interesting to spot how many companies that want to identify themselves with the latest trends and create an environment that allows them to market themselves as initiative takers in the digitalization market. To be able to say “we have a digital development…” is of more interest than actually getting means to re-innovate themselves proper in a New Market it seems. Now I’m probably too cynical in my comment…
Again, how many recipe apps can the market make use off?, how many measurement converter apps?, and how many appliance remote controls will the individual want to download on her devices? All of these are creating jungle of “digital initiatives” cluttering not only our phones but blocking the path to true digital innovation. A classical proverb would be to say “I can’t see the forest for all the trees…”
There is hope however, earlier this year the Open Connectivity Foundation was announced, with the ambition to standardize communications technology used in M2M/IOT environments. By doing so creating the means to bridge technology gaps and pathing the way to machine ecosystems. This is a true “digital enabler” but alone is this “digital transformation”?
My observation says No. This is a step on the way to enable digital services but for those looking to re-innovate themselves in a digital marketplace they will need to take a step further back to get a wider view of the digital forest. Not long ago we could read an article about Swedish corporations lacking digital competence in their leading functions (http://omni.se/A2Vq). It’s clear that a compass guiding the industry in changing times is well needed to avoid marketing and digital jungles.
Look at the Telecoms industry as a successful example of Digital Transformation. Back in 2001 the first “usable” smartphones hit the market, some of you maybe even used a GPRS cellphone to connect your Palm or MS Handheld. Now Internet became available on the move! A year later the market was hit by the first “smart phones” (low battery standby, poor screen quality, heavy – but still…) reached the general public. To create interest from the market Telecoms providers had to find a way to awaken interest in the products and bridge the user experience gap (monster phones!) and the usability they enabled.
Now, the Telecoms providers had to create content that had user value, hence the portals where created, the first apps came to be and online content changed dramatically compared to before. These companies enable the digital industry and pioneered the first digital services and you will agree that the business model has changed dramatically since then.
… and Solutions
The experience gained from digital transformation in the Telecoms industry is clear, but perhaps we take it for granted (?!) therefore by default looking for help in “traditional” houses.
Who would I seek assistance from today if owning a company seeking to enter a digital market? I would look for those who have actually done it already and avoid those companies providing solely paperwork and theory, as in the end I would like to execute my entry to the “promised land”.
For inspiration on larger digital ecosystems, take a look here (Smart Cities): http://www.orange.com/en/news/2015/Smartcities/Carte-interactive