Digital strategyHow vulnerable is your business model?
What is the impact of new technology? Does blockchain offer opportunities to make our organization more efficient or develop new revenue models? Or is it mainly a threat? Will machine learning increase the effectiveness of our organization? How can we learn and experiment, while preserving and using our current business model as much as possible? Questions like these deal with the digital strategy of a company.
Digitization is changing service concepts and competition patterns at an increasing pace. In almost every sector there is the risk of disruption. Technology also at great speed blurs the lines between business sectors. A good example is the Chinese company WeChat. Started as a message service like Whatsapp, WeChat now is a bank with cashless money, an e-commerce company, a provider of digital content and a medium to advertise on. The success of Tencent, the parent company of WeChat, lies in its ability to innovate constantly.
Urgency to innovate
Established companies have to make crucial choices in the short term in the field of digitization. A combination of factors creates urgency. First, customers more and more demand digital and customer-friendly solutions. Secondly, the number of startups challenging established companies is accelerating. The reason lies in decreasing costs
of IT solutions and the increase in venture capital in many sectors. Large companies with complex value chains are being attacked by startups in various specialized parts of their value chain. Take for example the wide spectrum of Fintechs which nestles in the banking value chain.
Digital disruption mapped
In 2017 the Global Center for Digital Business Transformation presented the latest version of the ‘digital vortex’. The vortex maps the chaos and complexity of digital disruption. Sectors in the eye of the storm, media, retail, telecom, suffer the greatest disruption by digital technologies. However, a vortex exerts a rotational force. As a result, other sectors, such as education, manufacturing and energy, are also drawn toward the eye of the storm. Companies in these sectors more and more have to deal with the disruptive forces of digital disruption.
Handling dynamics successfully
Companies that successfully manage to use new technology are usually outward-looking. They collaborate with each other and with startups. An example is the bank consortium behind Ripple, working on new bank blockchain solutions. Another important characteristic of successful companies is that they have a clear picture of the parts in which new technology can enhance their business model and where it threatens their business model. They know exactly whether they deploy investments in technology offensively or defensively. And last but not least, successful companies experiment a lot. They learn a lot from small-scale experimentation and co-creation with users, making it possible to better determine the timing of large-scale deployment.
Business model impact assessment
In order to give organizations more control over strategic opportunities and threats of digitization, Jester, together with Kryha, has developed a business model impact assessment. The assessment focuses on three topics: blockchain, the Internet of Things
and artificial intelligence. In two workshops we describe the current business model of your organization. We plot opportunities and threats due to technological developments in the business model. The assessment gives you insight into:
- The components of the business model where new technology offers opportunities
- The components of the business model where new technology poses threats
Based on the results we work with you to set up a business case driven roadmap. With this programme you will be working on concrete technical solutions on the basis of user cases.