A failure called Digital Transformation
In 2003, Nicholas G. Carr published an article in the Harvard Business Review, which he later developed into a book, with a provocative title, IT Doesn’t Matter. Part of the article’s reflection comes from this phrase: “What makes a resource truly strategic is not ubiquity but scarcity”. In short, what gives you a competitive advantage is not what the others are doing but what they aren’t.
Carr described how in the late 1990s and early 2000s CEOs routinely talked about the strategic value of information technology. Many of these companies initiated transformation processes accompanied by strategic consultants in order that the investment in these technological assets could serve to differentiate them. What happens today with Digital Transformation is exactly what happened 15 to 20 years ago with Information Technology.
Digital Transformation is already a commodity, and therefore, can not be strategic
In those same years began to take off Internet companies, as they were called then. In 94 is launched Amazon, in 98 Google and Tencent, in 2000 Baidu among others. And a few years later also began to take off many mobile companies. Between 97 and 2005 are the years of the great expansion of Blackberry and Nokia, and in 2007 Apple presents its iPhone.
In 2000 most companies put something in their strategic plans that was a commodity, while not paying sufficient attention to what could differentiate them from the rest, the Internet and mobile. Even in many cases, IT doesn’t matter was understood as IT is not a central part of the business. Today is the same thing, digital transformation is a commodity, and therefore, can not be strategic.
And do not misunderstand me, both information technology and digital capabilities are fundamental. If you have deficiencies you must cover them. Moreover, I believe that they should not be outsourced, they must be developed as own capacities, that become an essential part of the business. But they will not serve to differentiate. Thus, Digital Transformation is the result of having failed to have — and execute — a business strategy that incorporates Internet and mobile.
Companies with a strategy including Artificial Intelligence will create a greater disruption than the one that has created the Internet
Today, in my opinion, it is the Artificial Intelligence technology that offers the ability to differentiate. This has been understood by the big five (Google, Microsoft, Amazon, Facebook and Apple — although the latter to a lesser extent) reorganizing themselves around Artificial Intelligence. In addition, to add fuel to the fire, the rhythm of this cycle is likely to be faster and have a greater effect. Faster because Artificial Intelligence will be a commodity in 5–10 years instead of 15. A bigger effect because companies with a strategy including Artificial Intelligence will create a greater disruption than the one that has created the Internet.
If the wave of the Internet and the mobile has closed companies and transformed sectors, that of artificial intelligence will be an order of magnitude greater. The call to action is obvious.
(en español aquí)
