the responsive enterprise: capitalizing on disruptive change
TRANSCRIPT
Copyright © 2016 Tata Consultancy Services Limited
The Responsive Enterprise: Capitalizing on Disruptive ChangeKrishnan Ramanujam, Vice President and Global Head – Consulting & Enterprise Solutions
February 2016
PERSPECTIVESVolume 7 | Chapter 1
Companies that react first and best to cross-currents in their markets are the ones that survive
Apple’s phenomenal success was a result of focusing its formidable design, packaging, and marketing powers on the new forms of digital technology
Walmart adapted to the internet’s threat and now has a thriving ecommerce business
Surviving and thriving in a sea of change
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Monitor and improve customer experience across all channels
Install technologies that enable new processes for marketing, selling to, and servicing customers
Speed up product and service innovation for changing customer needs
Fundamental areas that demand change
Achieve business model innovation
Being responsive is easier said than done
A responsive enterprise transforms the way it organizes business processes and IT, and how it pursues market opportunities.
Transformation can be difficult for successful, experienced executives who resist new ways of doing business.
GE was slow to recognize the need for change but is now rapidly returning to its roots as an industrial products company, while growing a services business around it.
Six elements of a responsive enterprise
Business Strategy + Operations Design +
IT Design
All Aboard the Change Express
Rapidly Implementable Enterprise SystemsDigital DNA
Skills and Talent for Differentiation
Detection of the Need for Business Model
Innovation
Senior executives need to believe that digital technologies have, and will continue to revolutionize their industry
In a responsive enterprise, digital DNA represents the worldview and insights that guide executives’ thinking about the business
Leaders should build a clear understanding of what customers value and how digital technologies can help deliver it
1. Build digital DNA at the top
Standardizing processes by implementing enterprise systems on the cloud
Redesigning the customer experience through focused, speedy trials for new processes
Optimizing the supply chain in response to product proliferation, micro-segmentation of customers, and the Internet of Things
2. Meld strategy, operations design, and IT
Companies must simplify their business models by:
Customer-facing functions need standard systems to support business processes
Waterfall approaches should be replaced with agile development techniques that combine business process design, software development, and IT operations
Standardization and cloud-based software will help companies build new systems faster
3. Rely on enterprise systems
Companies need to grow and attract talent for the new roles created by digital technologies: data scientists, IoT experts, and digital and social media marketers.
Among the most important are Big Data number-crunchers who can provide accurate insight into the effectiveness of products and processes.
Retraining employees with the ability and desire to master new skills is imperative, as new talent may be difficult to find.
4. Build skills and attract talent
Companies need to ‘sense and respond’, and identify emerging technologies that are truly disruptive
Managers must set aside time to understand business model implications of technologies and test new business models
5. Nurture business model innovation
Multiple changes – in business models, processes, technologies, and skills –pose a significant challenge for leaders
Managing cultural change through clear communication and organizational design is key to the success of IT enabled transformation initiatives
Senior managers must harness the continuous customer feedback from digital media to reshape their companies’ futures
6. Get on board the fast-moving train
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