No doubt, 70% digital transformation projects fail!

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What will it take to be successful in digitally transforming a company? Agile/ Lean management? No, it's Cheetah's philosophy and then Lean & Agile.  

The main objective of digital transformation is to question legacy assumptions e.g. "do we need processes for expense claim at all?" rather "can process cost be decreased by 30%". The later is an example of incremental improvement and falls under Lean philosophy. Agile comes in to the picture when the final solution is being implemented by IT team. 

My prof Mr. Saral M  once said "most of businesses fall in two categories: Elephant and Cheetah". Elephants are gigantic, conservative, cost conscious and utilization driven business houses. Cheetahs are flexible, change driven,  margin & customer conscious business houses. 

Cheetah will have surplus of capacity (human/ physical resources) to capture new opportunities and to leverage sudden changes. Elephant will have resources 90+%  utilized and will compromise new opportunities with control on cost. Please note that both are right in their philosophy, well till Industry 4.0 kicked in.   

 


Above graph becomes quite interesting when seen with Martec's law graph. It says, in Industry 4.0, technology changes exponentially and organizational changes follow logarithmic trend. So as time passes, organization will "reset" due to huge gap. So Elephants are inherently handicapped. 


A business needs to plan surplus capacity to sail the tailwind. Does that mean an elephant can't be digitally transformed? Google has a 70:20:10 formula which states 70% will work on operations, 20% on incremental improvements and 10% on disruptions. All roles and resources are clearly demarcated. Management (Business and IT) needs less planning, analysis and more actions - unlike the traditional approach, as pointed out by many start-up cofounders. As cofounders graduate from manager/ consulting role to cofounder role,  they do less analysis and more decision taking. 

Elephants gotta dance!!!




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