Shaping digital business by leveraging current tech shifts - how to become a future ready company

Bridging the physical and digital realms - the evolutionary leap: from tangible to virtual mastery

In the contemporary business landscape, an inevitable transformation is underway, one that transcends the traditional boundaries of physical products and services to embrace the dynamic realm of data and software.

This paradigm shift marks a critical juncture where businesses evolve into entities driven by digital intelligence, leveraging the vast capabilities of software to redefine their core operations, products, and services.

When it comes to leveraging technology shifts to digitalize a company’s business model, a comprehension of the key aspects for this abstraction exercise is indispensable.

In general terms, nearly every industry is becoming digitalized by abstracting from hardware or the physical world to software or the digital world. It's crucial to understand which key physical elements require dedicated engineering domain expertise to be transferred to software engineering.

This transition represents not just the digitization of tangible assets but also emphasizes the necessity of proficiency in the digital domain to maintain and enhance a competitive edge.

The level of commodity in this transition determines the speed for digitalization of a business model. This recognition is important for prioritizing innovation initiatives.

In this article, I aim to share how a structured approach can assist in becoming future-ready for sustainable business execution that is dynamic and flexible enough to adapt to future technology shifts.

Future readiness : the pillars of sustainable success

n a rapidly evolving digital age, the concept of 'future readiness' has never been more critical. It's no longer sufficient to simply keep pace with the present; businesses must anticipate and adapt to future technology shifts to avoid becoming redundant in their market. Future readiness involves embracing a digital-first philosophy, fostering a culture of continuous learning, and mastering the digital domain.

Embracing a digital first philosophy: the journey from cloud adoption to AI dominance

At the heart of a future-ready enterprise lies a commitment to digital excellence, characterized by a strategic pivot from cloud-native foundations to an AI-first approach. This transformation entails harnessing the cloud's scalability and flexibility to facilitate rapid technological adoption, followed by integrating AI across operations to automate, optimize, and innovate. This digital-centric mindset is crucial for developing adaptive and flexible business models capable of thriving amidst fast-evolving market demands and changing customer engagement strategies.

Future-ready Enterprise (1):?Digital at its core - from cloud-native to AI-first.

• Raise productivity with a cloud native strategy to level up computerization and with digital tools for fast adoption of new technologies.
• Be(com)ing a digital enterprise is the precursor for adaptive and flexible digital business models in compressed innovation cycles and in a market environment with fast-changing customer engagement.
• Prioritize to an AI-first implementation strategy - put AI in the center of any automation, optimization and innovation activity to start leveraging the own data eco-system (and until quantum computing is not broadly marketable).
• Understand how to collect user data with consent and compensation: An own data eco-system allows to collect data points, that generate information to be processed into insights fueling predictions and intelligently prescribing actions.

Fostering a culture of continuous evolution: the learning organization redefined

The essence of a future-ready organization is its relentless pursuit of knowledge, where training transcends traditional boundaries to become an integral component of daily operations. By establishing a robust knowledge management system, organizations empower their workforce to harness technology for continuous improvement and innovation. This approach nurtures a liquid workforce, adept at adapting to new challenges through an embedded culture of learning and skill development.

Future-ready Organization (2) - lifelong learning as a core:?Becoming a learning organization means first, training is not employee downtime anymore, and second, know how retention happens with a self-sufficient knowledge management system. People are inherently enabled and empowered to employ technology for continuous workplace optimization and bottom-up innovation.

It’s the starting point of becoming a liquid workforce where learning is part of everyday work by shaping the learning experience and creating transparency about its impact (#4iLearning):

• #1 i - insightful: create evidence by own data and thus the transparency business leaders need to guide their teams for optimal learning activities - SINGLE POINT OF TRUTH for people growth and communication platform for exchange
• #2 i - interactive: provide a demand management process that matches people's need with learning material / content that accelerates skill elevation according to learning priorities; constant adaptation of learning offerings to increase the acceptance and confidence so that people find what they need
• #3 i - immersive: create an experience including fast feedback loops that enables learning as a change facilitator to level up the organization; e.g. managers & the leadership team are role modeling lifelong learning; people determine autonomously their working environments; stakeholders are involved into features’ co-creation
• #4 i - interoperable: learning is no down-time for people, but an integrative part of their daily job execution, because structures, processes, and policies snap into the organization’s learning ecosystem while considering the needs of the company; ease of access to learning, learning is democratized and finally: “learning” disappears as an extracurricular activity

Granting the people a level of autonomy and self-determination helps them employ time for innovations that aren’t predominantly targeted at their job routines. This is how organizations get into new products that are distant from their current business operating model.

Mastering the digital domain: transforming expertise into digital assets

A future-ready business model is distinguished by its ability to translate domain expertise into digital formats, transforming physical products, equipment, and components into software-based solutions. This process not only digitizes physical assets but also captures the valuable data they generate. By analyzing these digital footprints, businesses can unlock new opportunities for value creation, offering tailored digital services, efficient outcomes, and personalized experiences to nurture a flywheel growth of the business.

Future-ready Business Model (3):?Determine the tech stack for the future business model

A digital business makes use of data for an information based business model that provides value in the customer context through delivery of a service, an outcome or an experience.

• Explore today the tech stack needed for a sustained business success in the future with an horizon of 10 years (minimum 5+ years) in order to attract the needed talent early.
• Based on the defined purpose of tech employment for the target business model define a continuous exploring and scouting approach that ensure that the company remains contestable with compelling events: market dynamics, legal / regulatory requirements, socio-economic factors and unprecedented events.

It requires that people are a digital mindset, who use a set of approaches to make sense of and make use of data and technology. It’s a set of attitudes and behaviors that enable people and organizations to see new possibilities and shape the path for their future as an activity.

It’s about the abstraction from physical engineering, manufacturing and crafting to the digital representation of equipment and single components.

Take aways

The "Future Ready" concept is a strategy aimed at equipping businesses with the tools they need to succeed in any tech-enabled transformation.

?????As a future ready enterprise a company takes its technology stack to a level, that allows for long-run changes. Now, it means being cloud-native and AI first.

?????The future ready organization emphasizes learning as a natural and integrated part of business operations.

?????With a future ready business model, companies harvest their own data ecosystem and leverage the physical domain expertise into a software driven business.

A practical approach to become future ready

Step 1: Revised Assessment of Current Proficiency Level

In preparing to become future-ready, it's crucial to reassess current digital proficiency levels, with a particular focus on the integration and potential of AI tools across key operational areas. AI is becoming increasingly central to digital strategies, to the extent that it is expected to be integrated into nearly every system, tool, and software used by businesses, eventually becoming a commodity infrastructure.

1. Cloud Adoption and AI Integration: Assess the extent of cloud service integration and specifically evaluate how AI capabilities are being utilized within these cloud platforms (e.g. built-in by cloud service providers). Determine whether AI tools for data analysis, machine learning models, and AI-driven automation are in place and how effectively they're supporting inherently business operations, while staying compliant with the determined cloud governance model.
2. Workflow Automation Enhanced by AI: Review the automation of workflows with an emphasis on AI's role. This includes AI-driven process automation (RPA), AI - better said ML - for decision support, and the use of AI in optimizing operational efficiency and predictive maintenance.
3. Online Commerce with AI Personalization: Examine your e-commerce strategies for the incorporation of AI, particularly in areas like personalized customer experiences, AI-driven recommendations, inventory management, and predictive analytics for customer behavior.
4. Knowledge Management Powered by AI: Evaluate your knowledge management systems for AI integration. This involves AI for enhancing search capabilities, natural language processing for content summarization and categorization, and machine learning for identifying patterns in data that can drive innovation and knowledge sharing.
5. AI-Driven Customer Support: Assess the deployment of AI in customer support systems. Look at the use of AI chatbots for handling inquiries, AI tools for customer sentiment analysis, and automated ticketing systems powered by AI for improved response times and service quality.

Conducting the Assessment (fueled with AI):

By making use of Gen AI methods like e.g. RAG (Retrieval augmented generation) the experience of experts in the respective field will be leveraged to screen and assess the status quo in an organization:

• AI Technology Audit: Conduct a detailed audit focusing on AI tools and solutions currently in use. Identify gaps where AI could enhance efficiency, accuracy, and innovation.
• Surveys and AI Readiness Workshops: Engage with team members through surveys and workshops aimed at understanding their familiarity with AI tools and identifying areas for upskilling.
• Benchmark Against AI Advances: Benchmark your AI capabilities against industry leaders and competitors to understand where you stand in leveraging AI for business advantage.

This revised assessment approach will highlight not only the current digital proficiency but also pinpoint where AI can be further integrated into your business model to drive future readiness.

Step 2: Deriving a Measures Plan to Close Identified Gaps

After assessing the current proficiency levels, the next step involves developing a comprehensive measures plan. This plan should prioritize sustainable initiatives that allow for adaptive execution in the face of emerging tech shifts, particularly in AI advancements. Here’s how to approach this based on LD7’s blueprint for a future ready company:

1. Prioritize Based on Impact and Feasibility: High Impact, High Feasibility: Start with AI integrations that offer significant improvements to efficiency or customer experience and can be implemented with current resources. Long-Term Strategic Investments: Identify areas where AI can create a competitive advantage over time, such as predictive analytics for market trends or AI-driven product innovation.
2. Develop Skills and Knowledge: Training Programs: Implement comprehensive training programs focused on AI and digital technologies for all levels of the organization to ensure everyone understands how to leverage these tools effectively. Continuous Learning Culture: Foster a culture of continuous learning and curiosity, encouraging employees to explore new technologies and apply them creatively to their work.
3. Implement AI-Driven Solutions: Start Small and Scale: Begin with pilot projects to integrate AI into existing systems, such as customer support chatbots or AI-enhanced data analytics, and scale based on success and learnings. Vendor Partnerships: Collaborate with AI technology providers and vendors to leverage their expertise and solutions, reducing the time and cost of custom developments.
4. Enhance Data Management: Data Infrastructure: Build or enhance your data infrastructure to support AI applications, ensuring data is accessible, secure, and of high quality. Data Governance: Establish clear data governance policies that address data privacy, security, and ethical use of AI.
5. Adaptive Execution Framework: Agile Methodology: Adopt an agile approach to project management and development, allowing for rapid iteration and adaptation based on feedback and new technology developments. Tech Scouting and R&D: Regularly scout for new AI technologies and invest in R&D to stay ahead of market trends and integrate innovative solutions.
6. Measure and Adjust: Performance Metrics: Define clear metrics to measure the impact of AI integrations on business performance, customer satisfaction, and employee engagement. Feedback Loops: Establish mechanisms for continuous feedback from customers, employees, and partners to refine AI strategies and solutions.

This plan serves as a roadmap for closing the digital proficiency gaps identified in Step 1, with a strong emphasis on AI integration and sustainable, adaptive business practices.

The current tech landscape focuses strongly on AI embedded modernizations - however, this being a contemporary snap shot, future technology shifts will be treated in a similar way: full integration into the way how technology is being managed to provide business value.

Step 3: Create the foundations of a digital business with your own data ecosystem

The transition to becoming a technology company is underpinned by the creation of a robust data ecosystem. This ecosystem serves as the backbone for leveraging AI and other digital technologies, enabling informed decision-making, personalized customer experiences, and innovative services. Companies with a strong physical domain expertise will be able to distill the key aspects determining the software engineering for a unique product experience.

Here’s how to start building your data ecosystem:

1. Define Your Data Objectives: Identify the key business objectives that your data ecosystem will support, such as enhancing customer experiences, optimizing operations, or driving innovation ( - based on key expertise of the physical engineering, assembling or crafting of their current products / components). Determine the types of data needed to achieve these objectives, including customer data, operational data, and market data.
2. Establish a Data Collection Framework: Implement tools and processes for collecting data across various touchpoints, ensuring comprehensive coverage of customer interactions, operational processes, and external sources. Ensure compliance with data privacy regulations and ethical standards in data collection practices.
3. Develop a Data Storage and Management Strategy: Choose the right data storage solutions that align with your business size, scalability needs, and security requirements, considering options like cloud storage, data warehouses, and data lakes. Implement data management practices that ensure data quality, accessibility, and security, including regular data audits and cleanup.
4. Invest in Data Analytics and AI Tools: Deploy advanced analytics and AI tools that can process and analyze your data, turning it into actionable insights. This includes machine learning models, predictive analytics, and business intelligence platforms. Train your team on using these tools effectively to extract value from your data.
5. Foster a Data-Driven Culture: Encourage data-driven decision-making across the organization by making data and insights accessible to all employees. Celebrate success stories where data has driven significant business improvements to motivate and inspire your team.
6. Secure Your Data: Implement robust security measures to protect your data from breaches and unauthorized access, including encryption, access controls, and regular security audits. Educate your employees on data security best practices and the importance of safeguarding sensitive information.
7. Continuously Evolve Your Data Ecosystem: Stay abreast of new technologies and trends in data management and analytics, regularly updating your data ecosystem to leverage these advancements. Establish feedback loops to continually refine and improve your data strategies based on business outcomes and insights gained.

By carefully building and nurturing your data ecosystem, you lay the foundational infrastructure required for transitioning into a technology-centric business model. This ecosystem not only supports current operations but also positions your company to adapt and thrive in the face of future technological shifts.

Step 4: Ensuring the cultural mindset shift

The final step in preparing your organization for a future-ready transformation involves cultivating a cultural mindset that prioritizes know-how retention and fosters bottom-up innovation. This cultural shift is critical for empowering your workforce to leverage new technologies effectively and drive sustainable growth. Here's how to achieve this transformation:

1. Emphasize Lifelong Learning: Establish Learning Platforms: Implement accessible platforms where employees can continually update their skills, especially in areas related to digital technologies and AI. Personalized Learning Paths: Offer personalized learning opportunities that align with individual career goals and the organization's technological needs, encouraging a proactive approach to skill development.
2. Promote a Culture of Innovation: Innovation Challenges: Host regular innovation challenges or hackathons that encourage employees to propose and develop solutions addressing real business challenges. Idea Incubation: Provide resources and support for promising ideas, including time, funding, and mentorship, to cultivate a robust ecosystem of internal innovation.
3. Foster Collaboration and Knowledge Sharing: Cross-Functional Teams: Encourage the formation of cross-functional teams that bring together diverse perspectives and expertise to tackle complex problems. Knowledge Sharing Platforms: Utilize digital platforms that facilitate the sharing of insights, best practices, and lessons learned across the organization.
4. Recognize and Reward Contributions: Recognition Programs: Develop recognition programs that highlight and reward individuals and teams for their contributions to innovation and knowledge sharing. Career Advancement: Align career advancement opportunities with the demonstration of learning and innovation, reinforcing the value placed on these behaviors.
5. Lead by Example: Leadership Involvement: Ensure that leadership actively participates in learning initiatives and innovation projects, setting a strong example for the rest of the organization. Open Communication: Maintain transparent communication about the importance of the cultural shift, celebrating successes and addressing challenges openly.
6. Adapt Organizational Structures: Flexible Roles: Introduce more flexible job roles that allow employees to explore different areas of interest and contribute to various projects. Decentralized Decision-Making: Empower employees at all levels to make decisions and take ownership of projects, enhancing agility and responsiveness.
7. Continuous Feedback and Adaptation: Feedback Mechanisms: Implement mechanisms for regular feedback from employees on the effectiveness of learning and innovation initiatives, using this input to make continuous improvements. Adaptation to Change: Cultivate a mindset that views change as an opportunity rather than a threat, encouraging adaptability and resilience.

By embedding these principles into the fabric of your organization, you can achieve a transformative shift in culture that not only prepares your workforce for the digital future but also unleashes their potential to drive innovation and growth.

Take aways

Transforming to a future-ready company requires an approach that contains measures for AI integration into almost all aspects of the company depending on the current digital proficiency level.

?????Adopt AI Integration: Embrace AI tools and technologies across all facets of your organization - it will be the new infrastructure to power your business.

?????Build a Robust Data Ecosystem: Your data ecosystem is the digital representation of your key expertise to be translated into software and systems that are truly distinguishing to create a defendable business.

?????Foster a Culture of Lifelong Learning and Innovation: Encourage a continuous learning environment and promote innovation to stay adaptable and resilient in the face of technological shifts.

Charting the path forward - form insight to action: empowering the digital vanguard

To conclude, the pathway to becoming future-ready in the digital age is both a strategic obligation and a golden opportunity for creative innovation. As I navigate this journey myself, I'm reminded daily of the value of an insatiable curiosity and a commitment to lifelong learning. These are the very traits that fuel my passion for unearthing the possibilities that the digital world offers us.

In my personal exploration and professional endeavors, I've come to appreciate the importance of agility, technological proficiency, and a forward-thinking mindset. Embracing the principles of a digital-first approach has not only allowed me to navigate the intricate terrain of today's market landscape but has also empowered me to take a leadership role in shaping the digital future.

As thought leaders and professionals, it's our responsibility to spearhead this digital transformation in our organizations. We must continually adapt, learn, and stay ahead of the curve. This is the only way we can ensure that we are not just surviving but thriving in this rapidly evolving digital era.

As we continue to delve into the digital future, I understand the need for a platform where these discussions could be extended and enriched. With QFour.ai we will be launching a podcast series that will serve as a beacon of inspiration and guidance for those who are championing tech-enabled transformations in their respective organizations.

In these podcasts, we will explore each of the steps detailed in this article in greater depth, providing real-world examples, expert insights, and actionable strategies. Our goal is to create a robust resource that supports your journey towards becoming a future-ready organization.

Just as transformation is a collaborative process, we want this podcast series to be a dialogue. If you share your experiences, challenges, and needs as you navigate the digital landscape, we’ll make them tangible in our podcast episodes for your further development.

The journey towards a tech-enabled future can seem daunting, but remember – through shared knowledge, collaboration, and a steadfast commitment to learning and innovation, we can shape the future of business in the digital age.

Stay tuned for more details on the upcoming podcast series. We look forward to embarking on this exciting journey with you.