Agility, transformation & innovation are a must for survival
Disruption caused by emerging technologies and new business models takes incumbents by surprise. In such times, agility, transformation, & innovation are a must for survival and thrival.
We have quickly moved from the information society into the real-time society, where everything is connected, aware, and communicating with each other. The global digital output is growing more than 10 times every year and is expected to reach 35,000 exabytes by 2020. There will be 25 billion devices connected to the internet by 2015, and 50 billion by 2020. These developments bring sheer growth, which will be further enabled by emerging technologies and new business models, thus causing a huge disruption in the IT market.
Age of the Customer
All of the changes around us are going to create much better customer solutions than today. This puts customers at the centre of the change. A lot of these disruptive solutions will actually serve the customer, and no industry will be immune. The industries that are consumer centric will be the most affected.
In the Midst of the Disruption
We might easily agree that we are witnessing multiple disruptions. Our real-time society has given birth to a new knowledge economy, where “fast eats the slow.”This means rapid changes are name of the game, while agile innovators build on emerging technologies to maximize consumer experience in order to win. This disruption causes a new paradigm to be born.
Disruption Takes Traditional Incumbents by Surprise
In business, a well-known concept is “Innovator’s Dilemma.” This is a situation in which the established incumbents in a specific market are toppled by new entrants while the incumbents keep on investing incremental improvements to an existing services or products. Usually, they are doing this to support the incremental needs of their customers. Even recent examples visibly prove this point.
Business Transformation is not an Option, but an Obligation
In times of disruption, it is important to have a bi-focal approach. This means keeping a traditional business as cost effective and productive as possible, while building capabilities in the new paradigm through investigation and having a start-up mindset. With this mindset, companies will be required to actively cannibalize their business's old paradigm in favour of the new paradigm. This will require incumbents to have right “business transformation” capabilities and execution to help both themselves along with their customers during this change. Unfortunately, history has shown that not every incumbent will be able to pull this off. It requires a lot of organisational maturity. Tieto, however, is successfully bringing our clients into the new age through world-class Business Transformation.
About the study:
In fall 2013, Tieto conducted a study on the future of business transformation, based on qualitative and quantitative research. The study included an online survey, distributed to executives in Sweden, Norway and Finland, with 500 respondents. A majority of the respondent were members of the C-suite or business unit directors. The survey was supplemented by interviews with experts from Tieto and industry executive roundtable discussions, held in Stockholm, Oslo and Helsinki.