There are many things a company must tackle to execute a true and successful Digital Transformation. It takes time, money, and maybe the most difficult part, a new mindset.
As I have discussed in the previous two posts, a Digital Transformation requires hard work, but it isn’t as mysterious as many have made it out to be. I’m wrapping up this series with a discussion on the mindset necessary to move forward with your company’s Digital Transformation.
Our business nature, for years, has been to keep as much as possible secret from anyone outside the company. This has led to a business mindset of siloes within the company. Frankly, the consulting field has somewhat contributed to this by mystifying certain principles and terminology targeted at specific areas of discipline. For example, we hear about “Lean Manufacturing” regularly, but how often do you hear about “Lean Accounting”? The principles of Lean are universal.
The process of true Digital Transformation, which can also be called creating a Platform Strategy, requires the opposite mindset.
A Platform Strategy is a corporate strategy (and mindset) where a single version of truth related to transactions is trusted among all parties involved.
It is more than new technology.
It requires a commitment not only to modern technology but also to a never-ending pursuit of continuous improvement within the entire organization. Constituents are trusted with information because they are all viewed as valuable assets in the process and pursuit of perfection. When the company fosters a culture to recognize the individual and group value, they make a major move in the right direction to this platform strategy.
The idea of Platform Strategy was not conceived yesterday. In fact, there are many analysts in the investment world who target companies that have adopted the philosophy and the initiatives to embrace it. One such group created their own index fund made up of companies who had a Platform Strategy (or a Digital Transformation). These companies have been outperforming other companies in their industry sectors by almost 2 to 1 over the last 10 years.