It used to be easy to identify a company’s line of business. A bank was a bank; a computer company made hardware and software; a logistics company moved goods from one point to another.
Today, industry lines have blurred, and at the rate that businesses are embracing digital transformation (DX), boundaries will get broken down further.
In my work, I meet with hundreds of business leaders every year. In the last 12 months, CXOs across the Asia Pacific region have said the same thing: they are looking for new markets, new business models, new ways of becoming more cost-efficient and profitable.
2016 will mark a mega transition in the DX era. Enterprises will “flip the switch”, committing to a massive new scale of DX and 3rd Platform technologies in order to stake out leadership positions in the hyper-digital economy.
IDC predicts that by the end of 2017, 60% of Asia Pacific 1000 (A1000) enterprises will have DX at the center of their corporate strategy, with majority even creating an independent position to oversee the DX strategy implementation.
Despite believing in the need to drive innovation and create new digital revenue streams, only 15% of CIOs in the Asia Pacific region are confident in their abilities to do so, according to IDC’s research. With many of them already focused on changes within their own IT organizations, they have little time to lead the DX of the business.
The next generation of CIOs will need to manage the IT side of business innovation separately from their traditional roles of providing reliable, stable, and cost-efficient services for in-place systems and applications.
We in IDC believe that beyond the roles of driving innovation and creating stability, DX leadership requires the ability to manage the continuous transition from old to new. Businesses will need to overlay existing products and services with their replacements and to respond as fast as the external business system evolves.
To help our CIO customers, IDC has created a DX leadership framework, called “Leading in 3D” which treats the delivery of DX-added business value as a continuous process of linking three critical IT leadership disciplines: innovate, integrate and incorporate.
To innovate means to be a partner to the organization in fostering IT-enabled agility across departments, while the second discipline — integration — requires CIO leaders to take ownership of processes to integrate new technology platforms and deliver to the needs of the business.
Finally, the third, “incorporate”, means continuously incorporating new skills, techniques and culture into the fabric of the IT organization.
Today, the need to integrate presents both the biggest challenge and the biggest opportunity for CIOs.
In order to deliver transformational business processes, the modern CIO needs to develop the strategy and operating model to transition into future innovations, all while minimizing disruption.
Integration, therefore, is the foundation that will allow CIOs to innovate and incorporate. The digitalization of nations, economies, industry ecosystems and enterprises are pushing new competitive benchmarks in areas of business process excellence and new monetization and business models.
The new hyper-digital era presents opportunities and challenges that go beyond geographic and industry boundaries. This is where scale becomes the competitive ingredient for the digital enterprise.
Are you ready to take a leadership leap for transformational success?