Reading all the Lesson 01 material, I could not help but compare each scenario and technology noted in subsequent articles to how technology is perceived in different business environments. And how digital disruption affects different types of businesses, and some companies may be better equipped to face such a disruption. I will come back to this specific point later in my blog. The first essay in the series of reading material was from McKinsey’s aptly named Finding Your Digital Sweet Spot. The gist of the article is how some businesses may be better suited to take the route of cost reductions over investing in a digital strategy. Reading this article with the hindsight of having experienced a global pandemic firsthand was quite interesting. One of the more interesting aspects of this essay was how the authors did not see a point in investing in digital strategy for grocery and apparel stores. Knowing how the pandemic changed every industry’s digital calculus. McKinsey could not have been more wrong on this front. I do want to note that I wasn’t very enthused about reading an essay from McKinsey, even in an academic setting. With its litany of scandals, McKinsey’s reputation precedes it. Most recently, it was found guilty and paid a fine over its involvement in the opioid crisis. So, my opinion is admittedly jaundiced.
A similar theme ran through the Gartner essays, which were dated since most were published before or around the COVID-19 pandemic. Each piece detailed various technologies that could help businesses overcome stagnation, plan for, and face digital disruption. One of the technology trends described in Gartner’s 2019 essay is investing in an API platform strategy. I see a definite use case for this strategy in my enterprise. Productizing APIs, publishing them, and building governance around them would create new data streams that would help drive business intelligence. However, the siloed nature of different business units and the tendency to gatekeep the data may prevent enterprises from achieving this goal. This seems to be a maxim for many enterprises. I would like to hear your enterprise’s strategy for a robust API platform.
Another salient point in Gartner’s Digital Disruption and Innovation Primer essay was the need to set up a dedicated organization to focus on disrupting technologies. This strategy can help enterprises plan for future digital disruptions. Suppose the executive leadership is willing to invest in such an office. They can steer the enterprise through potential disruption and remain ahead of the digital curve. As noted above, some enterprises are better suited to face and plan for digital transformation. Companies with core IT competencies like Salesforce, Microsoft, and Red Hat are better equipped to face digital disruptions. However, this should not preclude other businesses from trying to be proactive and constitute a transformation office, which would help them immensely.
Gartner describes disruption as having three dimensions.
- Scale
- Reach
- Richness
These three dimensions must be assessed across society, industry, business, and technology. However, most companies fail to comprehend these disruptions. As the WSJ article notes, humans have a better time understanding linear change but struggle with exponential disruption. It is akin to my struggle with the concept of time and space and how time specifically can be relative. My comprehension struggles aside; this article very aptly calls out enterprises’ refusal to address the soft layers while trying to force digital transformation. Similarly to Gartner, WSJ also asks the executives to invest time in ideating and taking a break from going through the motions of IT. In short, digital transformation requires enterprises to invest in developing skills and competencies. In addition, the enterprises should invest in a transformation office whose core objective is to ideate and project a future roadmap for success by incorporating disruptive technologies.
Ultimately, I want to summarize by saying that I agree with Gartner’s core points, which I have listed above. I do believe that companies that want to grow should examine their digital strategy, irrespective of their size and stature. The high cost of entry may deter many small-sized businesses from employing a digital strategy. Nevertheless, they should still investigate in some capacity to broach this subject. The pandemic has shifted the pace of this discussion; online pickup is a norm for almost all retailers, irrespective of industry. There are also marked improvements in the process flow for picking up an item from a store. Digital disruption will continue to manifest in different shapes and forms; having a positive and willing mindset is the only way to manage your small or big business through such a disruption. Let me know your thoughts on how you think enterprises should manage/face digital disruption.