Believe in future and embrace change!

Who has not been fascinated by sci-fi cartoons and movies? As we sail through the digital era, sci-fi stories and possibilities are becoming increasingly believable. Gartner predictions clearly indicate that the era of “robo-bosses” and “machine authors” is not far away. The digital wave is approaching so fast that organizations need to get in to a “Do or Die” mode at the earliest. Many organizations defined their digital goals in 2015, and now is the time for some solid action. The roadmap to go digital has to be charted out keeping in mind that the definition of digital goal might change in the due course. Yes, the world is changing that fast!

“An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage” – Jack Welch.  

As organizations try to redefine their business models, here are some useful frameworks and tips.

Accept that there is an “eighth P” in marketing mix - Partner:

One of the widely used marketing models which has stood the test of time is 4P’s of marketing mix - Product, Place, Promotions, Pricing. This simple, intuitive and generic framework has helped managers/ marketers shape their marketing plans and GTM strategy. As businesses started focusing more on services, 3 more P’s were added to it to make the model more relevant to services context – People, Physical Evidence and Process. It is important to consider all these 7 elements of marketing mix as business models are redefined for the digital age. 

One important element which is missing in this standard model is a digital “partner”, possibly the “eighth P” (first mentioned in Emarketing Excellence by Dave Chaffey and PR Smith). Traditional businesses mostly used partners as an additional channel for sales and hence it was included under “Place” itself. But this has to change as business models are repurposed for digital world. A digital partner is not an additional channel of sales. A digital partner understands latest digital trends, asks questions relevant to your business in the digital world, triggers thoughts, facilitates discussions and co-creates new business models and processes. This can impact all stages of solution lifecycle. Choosing the right digital partner is like getting the right strategist who can see the larger picture and give suggestions based on market trends and other customer experiences. No wonder that partnership management is increasingly becoming a key responsibility area for digital business managers. It is crucial that platform/service providers gear up to client expectations and equip themselves to be successful digital partners. They should be able to derive insights from various case studies and their own experiential learning. 

No 5-year plans please - Digital is here to stay, but its definition will change!

Recently, I heard one of my friends proudly saying that she has an amazing gift for her new born. Looks like she created a facebook account for the baby and her plan is to keep uploading photos to that account. Once the kid turns 16, she is planning to show it to her as a special gift for sweet 16. I was amazed by her thoughtfulness for a moment, but wait…….. Will facebook be still the same after 16 years? Will the term “social networking” even exist after 16 years? Remember what it meant 16 years back? Will some other solution satisfy human need to stay connected then?..... My point is that in the world of technology, things become obsolete so fast that you don’t even remember it once existed! Nothing is a fad here, but everything is so vibrant and ready to evolve. Long term plans and roadmaps may not stay relevant. 

The meaning of Digital has evolved over years and it will continue to evolve. This rapid pace of change has important implications for managers. Digital roadmap should consider breaking objectives into small viable chunks. Lean startup concept of “Think big, start small and learn fast” should be the guiding theme for charting out digital plan. Long term digital projects might become irrelevant by the time they are implemented. Identify few critical use cases, keeping in mind that the benefits should be measurable. Collaboratories and Liquid Application Studios help companies do quick prototypes and develop custom applications leveraging reusable components. 

Core competency Vs Complementary:

There is a beautiful concept called “Metamarket” in marketing world. “Meta Market is a web-based market centered around an event or an industry, rather than a single product. These are markets of complementary products that are closely related in the minds of consumers, but spread across different industries.” It is truly fascinating to observe that almost all businesses today are driven by this concept. The theory of core competence is slowly giving way to the power of adaptability. Staying relevant is applicable to individuals and organizations in this era of rapid change. When businesses start thinking about the needs of customers, the market boundaries expand and more complementary product ideas come up. Digital power makes it all possible and technology gives wings to imagination. 

If Google can think of Google Express, amazon can think of echo and original series, Nike can think of wearables and apps, what is impossible in this world. A true win-win! Digital business models should be redefined considering these expanded market boundaries and additional channels. 

As the world gets ready for change, do you have more tips to share?