Six Steps for Weathering Digital Disruption
The love affair with digital transformation seems to be cooling a bit as companies encounter a new challenge: digital disruption. What’s often separating enterprises from their competitors is no longer whether they have invested in digital transformation, but if they’ve been able to weather digital disruption.
For many enterprises, the trouble is rooted in a choice to simply improve their business models, rather than make a real transformation. The result is a vulnerability to a crisis that requires comprehensive change. Since digital transformation is becoming less of a differentiator, the difference is now noted in how deeply digital transformation was applied.
Enterprises cite difficulties such as tightening operating costs, regulatory issues, and disruption to the organization as areas that create obstacles – necessitating an evaluation of the digital transformation process. Few enterprises can walk through a digital disruption without significant negative impact, which can, in turn, cause difficulties in areas such as attracting talent and launching new business initiatives. The chief information officer (CIO) plays a critical role in directing the enterprise through these types of challenges.
There are six steps that CIOs can take to decrease the impact of digital disruption and successfully navigate its challenges:
Invest in Relationships. CIOs need to cultivate good relationships with senior executives and particularly the CEO. A solid partnership allows for better communication and the ability of the CIO to quickly implement changes that the CEO directs.
Prioritize Agility. It’s important for CIOs to build a set of platforms that allow them to not only weather a disruption but also gain an advantage from it. It requires an approach that decouples and simplifies components to easily support new operating models. In this IT setting, investing in digital technology works as a differentiator.
Look Ahead. The most effective CIOs watch for new trends and position their organization to be ready to adapt or implement new tools.
Watch for “Turns.” Knowing which direction the organization must turn when digital disruption occurs separates the best leaders from the pack. CIOs need to exhibit this kind of leadership when convincing stakeholders – including employees and investors – to follow their lead.
Invest With Care. The best CIOs make smart IT investments. It’s not just about low-hanging fruit or quick fixes but deeper, disruptive change.
Keep Adaptability at the Forefront. The strategy must be clear and decisive but also adaptable if a digital disruption occurs. Planning for the worst may be a reliable way to ensure that the enterprise is able to weather any challenges.
Companies that have prioritized stability in their transformation processes may be at a significant disadvantage when digital disruption occurs. It’s those enterprises that have the ability to make necessary changes in a crisis that will come out stronger on the other side.
Is your enterprise prepared for a disruption? Contact us at Net Tel One Communications for guidance on creating a digital transformation strategy that is ready for the many turns ahead for your enterprise.