Disruptive business models, IT as an essential part of the organization and flexible leadership play a role in the digital trends for 2015. Ron Tolido, Senior Vice President Capgemini CTO Office, shares insights on these topics and what to expect in 2015. This blog post will share some insights.
After “Big Data” in 2014, “disruptive” will be the new trend and buzz word of 2015. Disruptive is used when you radically change your business model to disrupt the market. We know that the goal of many start-ups is making a swing at the big organization with their disruptive business model. But you don’t have to be a (small) start-up to join the ride. Even bigger organizations can take the same approach by, for example, starting a spinoff. In the financial world we saw this happening with direct banking: bigger banks with a long heritage and according legacy are often too rigid to react to the flexible market. As a solution they start direct banks as spinoffs without the legacy slowing them down.
But it’s wise to start a spinoff and become a direct competitor of your own (big organization)? Well, Ron pointed out that it’s better to eat some of your own cookie, than when others would do it. Fair point.
Leadership plays a key role in digital innovation to make (increase) profits and gain market share. Conservative leadership will also still work, but the effect will decline as new opportunities are missed and market share declines.
Innovation without dedicated and involved top management will not work. A dedicated Chief Innovation Manager, a Strategy Manager or CIO alone is not sufficient: the whole top management must be convinced of the need to enter the digital age. Bottom-up initiatives contribute, but without a clear direction from top, they will come to a halt.
If you go for digital innovation, you have to go the full monty. Some organizations digitalize and freshen up the front office, but the back office remains the same. We’re not only talking about shop design and used technology, but also of a culture and mentality shift. You cannot be a client centric organization if this is only valid for your front office and not for your back office. Imagine the best hospitality and service in the shop, and waiting for ages from a response from the back office. I’m sure you can recall a few example organizations where this is valid.
The IT department of your organization matters. There used to be a time where the IT department was located in the cellar. The employees were considered as pariahs at work, Ron shared jokingly, “We had to sit at a different table in the cafeteria and still our colleagues were looking strange at us”. These days are over for sure as we enter the digital age. IT is changed from a supporting function for crunching numbers to an essential role in the future of the organization.
Before showing some technical innovations coming our way, Ron concludes that IT management needs to evolve from an infrastructure to an infostructure. It’s time to cut off old applications instead of keeping the alive. We need to learn to stop things instead of providing support forever.