Ambition is expensive, very much.
I am always learning new concepts and this time it was the “Digital Ambition“. It was not very clear at first, and it seems that it refers to an organization’s strategic vision and goals related to leveraging digital technologies and capabilities to drive significant improvements, growth, and innovation within the business.
The same article discusses three levels of ripple effects when the value proposition is changed.
- Creating a New Value Proposition:
- Requires a new business model and capabilities to deliver a changed value proposition, a new operating model and resources aligned towards service delivery, and a shift in the financial model to balance short-term profitability and long-term scalability.
- Expanding the Value Proposition:
- Necessitates changes to the business and operating models to accommodate an expanded value proposition, development of new capabilities and resources to deliver the expanded proposition, and adjustment of the financial model and incentives to align with the new value proposition.
- Improving the Value Proposition:
- Focuses on enhancing operational efficiency without changing the business model, introduction of new capabilities, such as automation and intelligence, and improvement on the operating model and processes to support the enhanced value proposition
I am excited about digital transformation, but it will also require some adjustments to the current value proposition. I will be very cautious because even improving it will cause a huge wave that would shake up the core business model and capabilities.
It is essential to have ambition, but at the same time, I must also open my heart and listen to advise to prevent people from being swept away and perish by the waves.
Wonkyu, your post brings some exciting considerations, and I would like to complement them. Often functional areas think that the solution to their inefficiencies is always an implementation or a trendy technological development. Still, before defining their requirements and expectations, they do not make a conscious review of their processes, have identified their bottlenecks, or do not know what their capabilities are, to name a few examples.
The above-mentioned brings as a consequence that when a development or an innovation is delivered, it does not get with it real value contributions and what the title of your post says, it comes out very expensive.
Wonkyu, good post! I’m in agreement that changes to business value proposition will change how organizations operate and often think… The 3 types of value propositions described will vary in degrees of affect against the organizations. Obviously newer propositions will require in-depth development to align with current business strategies, requiring stakeholders and key decision makers to develop models and align capabilities and resources to support. Where as expanding or improving propositions acts more like an audit to support already growing changes within business strategy. My first thought to your post, was how can we effectively execute the 3 types of value propositions approach, while mitigating certain conditions that could pose greater cost for the organization. Maybe it is unavoidable, and change will ultimately cause some cost and time regardless of approach, but also maybe with appropriate governance certain steps can be take to reduce such cost.
I find it interesting your view that we need a new value proposition. Ultimately, I view these technologies as part of the process for companies to deliver the value they already deliver to customers. At the end integrating AI into Microsoft Word does not change Microsoft’s value proposition of providing you with a suite of integrated office productivity tools, but instead enhances it to include a feature that will allow for you to save time and do things better. In this way the value proposition is enhanced as opposed to changed.