Is your business prepared to adapt to digitisation?
Multinational management consulting firm McKinsey & Company has recently made the statement that to cope with the challenge of digital disruption, companies need to reinvent their core business model. What does this advice mean, and what steps can IT professionals take to stay on top of the wave of change?
Digital shifts will come not only from emerging technologies, but also from changing customer needs.
The need for reinvention
According to McKinsey & Company's research, the effects of digitisation have only begun to become clear in many industries, meaning that there is still major disruption to come. Businesses need to be ready to adapt to this disruption and find new revenue sources because as Mckinsey & Company says, the current digital shift "rewards change and punishes stasis".
Digitalisation and its effects on an industry are complex, and the shifts will come not only from emerging technologies, but also from changing customer needs. Addressing this can mean more than just taking an analogue process and putting it online. Making the odd adjustment to your business model here and there won't be enough – you need to be open to completely rethinking your business models.
Kiwi solutions mirror international answers
So what does this mean to businesses here in New Zealand? Kiwi companies are, by and large, facing the same challenges caused by digital disruption as those overseas, and the solutions used there are applicable here too. Andrew Rowsell-Jones writes for CIO New Zealand that companies wanting to realign themselves to deal with a digital shift in their industry should follow three basic steps:
1. Investigate threats and opportunities
Do your research. Where is your market heading, and what new technological or social developments are likely to redirect it? What are your competitors doing, and is it effective? What can you do better?
2. Understand the results
Set aside the time and resources to properly get a handle on the situation. This is where IT professionals have an advantage over other business members, as our understanding of digital technology and how it affects our industry goes deeper than most.
3. Take action
It's all very well identifying what the opportunities and risks are for your business, but it doesn't count for much unless you do something about it. Once you've made your analysis, you need to take steps to avoid the threats or capitalise on the opportunity. It might mean that you have to move quickly – the nature of the disrupted digital landscape is that little remains static for very long.
Companies that are agile enough to not only anticipate changes to the IT industry but who act on these predictions are the ones that will be the most successful. For more insights on where IT in New Zealand is heading, get in touch with your local 920 branch.
