A recent Cisco study predicted that 4 in 10 incumbents in every industry will be disrupted by 2020. That’s a lot. It’s safe to assume the disrupters will be “born in the data” start-ups like Uber and AirBnB who aren’t burdened by old-fashioned business models. The incumbent companies that do manage to survive will need to adapt to a totally different operating and business model landscape built on running their businesses in an agile and real-time manner and making decisions with a 360-degree view of historic, current, and predictive data – “LIVE Businesses”.
Today, large enterprises have troves of data that define every element of the billions of interactions across the hundreds of silos that define a global enterprise. This data, when aggregated, married with predictive data from inside and outside the enterprise, and managed through a real-time IT infrastructure, has the potential to create transformative customer, supply chain, and ecosystem value. Unfortunately however, in many companies today this information is not synthesized and is not available for real-time evaluation. Many business leaders are still using the HIPPO (highest-paid-person’s-opinion) model versus a data-driven approach to decision-making.
These companies violate our FACT-based agile principles of success. They are not Fast to act, they are not Adaptive to change, they are not Customer-centric and they can’t act as a cross-functional Team to innovate. In essence, they are doomed to fail as they can’t possibly meet current customer expectations. As Ray Wang points out in his recent blog in the Digitalist on The Foundation Of Real-Time Digital Business business leaders need to wrap their heads around using their data in real time.
Building on the questions Ray asks in his blog, companies in this position need to start by considering the following:
Based on how things are changing, what data sets do we need in order to make decisions in an agile manner?
What is currently available and accessible and what is not and what gaps do we need to fill?
How much time and effort is required to address the gaps and what phased process is required to do so?
What are the adjacent considerations: business model, digital strategy, application and platform, etc.?
And finally, how can data be organized to create POCs of live business scenarios to open executive eyes to what is possible? This awakening is key to gaining the needed vision, courage, and risk-taking to pursue a journey toward live business.
Ultimately, today’s leaders must create LIVE businesses or find themselves fighting to survive.