Digital Business Model Transformation
Two weeks ago, we kicked off our digital transformation series with an article defining key types of digital transformation. This week, we are focusing on Business Model Transformation. It’s no secret that digital technology and the “internet of things” obsession of modern life has radically transformed much of the business landscape. Our appliances are online, we can shop for insurance or a mortgage from our phone, and buying products on social media as we scroll has never been easier.
But as a business owner who’s ready to level up, how do you embrace this innovation while operating in your current state? Business model transformation, in which companies utilize existing and emergent technologies to transform (in both radical and imperceptible ways) the industry models in which they operate, requires a large measure of change management expertise to ensure its success. And because most businesses can’t simply hit the pause button, undergoing a business model transformation (or even thriving while your industry changes dramatically) demands a rigorous model for change.
Exploration of a new market segment, the implementation of a new software platform, or a massive overhaul of product offerings, all while maintaining a business as usual strategy, is a delicate balancing act with many moving parts. Leadership needs to be aligned and communication needs to be clear and concise. Employees need to be educated, engaged, and led from the heart to keep them moving in the right direction.