Well thought-out digital strategies for large-scale transformation are essential for organizations to stay competitive and relevant in today’s fast-paced market
Words by Damayanti Bandopadhyay
Innovation is often perceived as a sudden spark of brilliance; however, it is actually a sustained and deliberate process involving exploration, experimentation, and continuous improvement. Embracing digital strategies plays a crucial role in fostering a culture of transformation, which is vital for organizations to remain competitive and relevant.
In the last five years, several companies have exited the Fortune 500. However, during this same period, there have been 15 new entries to the Fortune 500 list, which collectively generated $146.2 billion in revenue. Some of these new entrants include companies like Airbnb, Lululemon, Skechers, and ServiceNow. This underscores the critical importance of continually embracing innovation to sustain growth and remain relevant in the evolving marketplace.
Innovation is the key catalyst of transformation
The key elements linking survival and expansion are innovation-driven KPIs, a growth mindset, agility, and a focus on customer centricity. Common measures of innovation include the strength of the R&D pipeline, the number of patent filings, the rate of idea conversion, and revenue from new products. However, these outcomes are achieved only by organizations that remain dedicated to being customer-focused, adaptable, collaborative, and committed to empowering their employees.
I would like to zoom in and offer some first-hand experience of being engaged with two such successful legacies, which are very different in business models and domains:
- IBM: A technology enterprise with a deep blue DNA of innovation, excellence, and great R&D. Evolving from punch card makers to bringing the power of cloud computing, IBM’s journey includes ventures with supercomputers for commercial applications through Watson and the ever-present high processing powers of IBM mainframes. Despite facing the obstacles of the 90s debacle, the legacy endured. This exemplifies regenerative growth driven by unconventional transformation. Lou Gerstner’s leadership during a crisis, as detailed in Who Says Elephants Can’t Dance, illustrates the impact of transformative leadership on organizational success.
- The Mahindra Group: Currently witnessing transformative growth, the Mahindra Group is evolving into a technology-centric organization by investing in smart factories and delivering tech-led customer experiences. This includes advancements in electric vehicles and connected car technologies in the automotive sector, smart farming solutions in agriculture, and a strong focus on digital services. The group is also fostering innovation and accelerating on the AI maturity curve for both its customers and employees.
The book Too Big To Fail inspired me to explore Jamie Dimon’s leadership attributes, particularly his ability to foster a culture of innovation at JPMorgan Chase. Under Dimon’s guidance, JPMC has balanced technological advancement with prudent risk management, exemplified by strategic moves like the investment in Bear Stearns and foresight regarding Lehman Brothers. Dimon’s focus on technology investments, fintech partnerships, agile methodologies, and customer-centric solutions has positioned JPMC as a leader in digital transformation in the financial services industry.
Pitney Bowes is another example of reinvention through integrating technology into its core operations and focusing on e-commerce and digital logistics solutions. GE transformed its business through digital technologies, focusing on ‘Predix platform.’ These examples are testimonies to the fact that innovation results from various attributes, including agility, unconventional thinking, and receptiveness to both internal and external forces.
Digital Transformation Beyond Customer Experience
Digital transformation is no longer just about cloud, AI, or automation. It goes beyond technology or customer experience; it fundamentally involves re-imagining solutions and services in a non-physical way. Companies like Nike and Lego have set gold standards in customer centricity through digitalization, but digital transformation also encompasses optimizing back-end processes and utilizing external forces and disparate data to derive meaningful business insights. It compels organizations to build the data fabric that supports the growing volume, veracity, and velocity of enterprise data.
Future Forward
Three trends will redefine the ways of doing business and staying relevant:
- Sustainable Business Models Driven by SDGs: Most organizations are aware and actively progressing toward becoming net-zero enterprises. Adoption of circular economy practices, involving data and traceability to minimize waste, are conscious efforts.
- Man-Machine Confluence through Industry 5.0: This trend is evident in manufacturing environments where co-bots (collaborative robots) work alongside humans to enhance productivity and efficiency. Companies like Siemens and Tesla are leveraging AI-driven automation and advanced robotics to optimize production processes.
- AGI (Artificial General Intelligence): Its influence on driving ethical AI practices in business is profound. AGI technologies that prioritize ethical considerations, such as bias reduction and transparency in AI decision-making, are essential. By focusing on ethical AI, businesses can build trust, enhance customer experiences, and innovate responsibly, ensuring that AI-driven solutions align with societal values and contribute positively to global challenges.
Embracing these innovations is essential for organizations aiming to thrive in a rapidly evolving global landscape.
Damayanti Bandopadhyay is the Head of Digital Transformation & Innovation for Mahindra Digital Engine
