Monday, October 19, 2020

DIGITAL BUSINESS HAS DIFFERENT NEEDS

What makes a digital business and its requirements from IT so different? For starters, an unexpected department within the business may be running the digital transformation initiative. For example, the digital transformation initiatives of several of our clients are run by the Marketing department. In these cases, Marketing is not only in charge of the business aspects of the initiative, they are also spearheading product development, which includes managing third-party software development of the customer-facing digital product and contractor stand-up of a cloud-based data analytics platform.

Why Marketing? Because fundamentally digital business is about more than just using the latest technologies . . . it’s about leveraging digital technologies in a way that fundamentally changes the way the business operates, the way it interacts with and learns from its customers, and the way it maneuvers competitors into undesirable positions of playing catch-up. Accomplishing any of these is dependent upon a speed of execution not commonly found in IT. Indeed, a common business accusation is that “IT Is Too Slow.” By the time many IT departments configure a system, code new software, or build a website, the original need for the software or system has changed. Customers are fickle, and in the digital era incrementally rolling out small functionality improvements and “good enough” features trumps completeness and long-term product roadmaps. The cousin of speed is flexibility, and this is also a pre-requisite for a digital business to be successful. What is popular with customers this quarter may be largely forgotten in six months, so excessive effort creating something new or undue attachment to what worked in the past often gets in the way of profitable innovation.

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