How Pandemic transforms the way of doing business?The urgent operational changes triggered by the COVID 19 pandemic have come about because many companies are involved in ambitious digital transformation programs. Rapid technological developments and changes in the workplace triggered by the pandemic require companies to evaluate their strategies for digital transformation. Recent events have accelerated the paradigm shift from digitization to servicing the economy, with signs of a marked shift in the spending toward digitization from the start. The pandemic was a reality check for companies that resisted digital transformation and now find themselves unprepared.
Since the pandemic hits suddenly, the global workforce and way of operating the business and managing have accelerated digitally without a choice.
The most affected sector has been the SMB, that over 95% of the SMB are not well equipped with digital solution infrastructure. The critical and immediate challenges for business owners were
1. Manpower Management and their accountability
2. Effective Collaboration among the team members
3. Dealing with clients and enabling digital commerce, and logistics
4. Dealing with new business prospects, conversation journey as a paying client, and scaling the business.
SMB owner Self-learning journey:The SMB owners and Technology managers are watching companies go round in circles, trying to reconcile business and technology, and they are working to become smarter about how to do this. They are having a hard time finding the right solutions as there was not an inclusive platform in the marketplace that can address the key organization management features like collaboration suites, tasks, project management, managing surveys, campaigns, events, instant communications, and virtual meetings... etc. Instead, individual solutions addressing a problem are available from the different vendors. And making them work together is an effort-consuming practice as data needs to be manually transported from one solution to another.
Imagine an organization of 50 employees and their recurring subscription cost $150.00 per month per seat. Recurring a cost of $90,000.00 per year is a huge cost for an SMB owner. #wayofdoingbusiness #smb #digitaltransformations #id4org #businessmanaging
- consumers, with digital platforms offering music, series, movies and lifestyle content; - merchants, with mobile payment, digital customer-relationship management, digital loyalty-program solutions and an online-to-offline - platform on which they acquired more than 300,000 merchants; - enterprises, leveraging customers’ data and internal advanced-analytics capabilities to provide analytics as a service to enterprises across most industries; - talent, selling solutions such as a digital academy to upskill talent in the digital era.2. Agile development and operations Leveraging agile-development principles and creating customer-focused, scalable operating and delivery models can meet customer expectations for more efficient services. For example, in 2015, ING, the Dutch banking group, began shifting its traditional organizational structure to become more agile, improving time to market by 37 percent, cutting application-development costs by 60 percent, and decreasing new customer onboarding time from 20 days and three branch visits to a single five-minute process. 3. Governance that allows for a portfolio of bets Agile organizations deploy governance mechanisms that bolster innovation and foster a client-oriented mindset. Examples include Singtel’s venture-capital arm, Google’s internal incubator, and Tencent’s “internal competition.” Tencent’s internal competition is a good example of building a biological governance model. This model imitates the evolutionary theory of survival of the fittest by allowing different solutions to compete. Two of the most prominent products in Tencent’s ecosystem, the social networking service WeChat and the mobile game Glory of the King, were developed using this mechanism. 4. A strong middle platform that organizes core capabilities and maximizes synergies First adopted by internet companies such as Alibaba, a broader middle platform in which different businesses share customer information, is one way that companies can harness their big data capability. Thanks to its cross-business data-sharing platform, Alibaba leverages customers’ data from the Hema Supermarkets app, the offline retail store under Alibaba, to increase the accuracy of its customer purchase-behavior information by 20 to 30 percent. 5. Entrepreneurial talent Any ecosystem’s success depends on the quality of its talent, particularly for traditional companies entering a very different market environment. To get the talent they need, companies should strive to hire the right types of people, retain those with the potential to become future leaders, and build an entrepreneurial culture. Tinkoff Bank focused on talent to drive its entrepreneurial transformation. The bank teamed up with the Talent and Success Foundation to establish a new development hub in Sochi and has also announced the launch of an R&D center at Skolkovo that will focus on blockchain-based solutions and crypto-economics research to boost its financial ecosystem. Tinkoff has developed a start-up spirit with an open, egalitarian culture where everyone is encouraged to speak up. 6. Partnership Collaboration is critical for success within an ecosystem. LEGO has extensively leveraged partnerships to expand its brand and keep it relevant for evolving audiences. In 2009, it partnered with Disney to produce toys and video games and recently, it partnered with Nintendo to launch LEGO Super Mario, featuring an interactive LEGO Mario figure. The company also has longstanding partnerships with other well-known brands such as Batman, Harry Potter, and Ninjago. In April 2020, the LEGO Group announced yet another collaboration—an exclusive global partnership with Universal Music Group to launch a new suite of music-based LEGO products in 2021. Putting all these capabilities together, companies should be ready for the challenge and the opportunity of the ecosystem revolution. Success of early ecosystem plays proved that ecosystem strategies could generate real value, motivating new startups and incumbents to follow. While a few years ago ecosystems were thought to be relevant for only a few industries and regions, in the last two years we have seen dominant ecosystem players, startups and incumbents, accelerate their activities, all over the world. This trend is likely to intensify in the wake of the COVID-19 crisis as digital interactions are an important step-change in both business-to-business and business-to-customer activities: consumers are looking for more end-to-end journeys across products and services, and organizations are looking to rapidly reinvent their value proposition for the “next normal.” However, going after that opportunity requires strategic focus, and choosing the approach that best fits the organization, to unlock the full potential of an ecosystem strategy. Source - mckinsey Author - Miklos Dietz , Hamza Khan, and Istvan Rab . #digitalecosystems #id4org #ecosystem #solutions