Role of “Continuous Next” in Digital Transformation
According to some industry estimates, digital transformations are $1.7 trillion industry and according to McKinsey & Company, more than 70% fail to achieve their desired outcomes. Some of the major reasons for such a high failure rate are organizations’ inability to deal with uncertainties, lack of clearly defined goals & more importantly the lack of disciplined process in achieving them.
Getting digital embedded in the DNA of business is not a one-time project rather a lifestyle for all the people within business and technology. The disruptions that used to happen once in every 5–10 years are happening now every 1–2 years and in some industries daily. It is important for organizations not to look at digital transformation as a static goal rather an ongoing journey and you only get there by changing the DNA of the organization by following the philosophy of “Continuous Next”.
Continuous Next is where an organization looks to disrupt itself on an ongoing and consistent basis. Organizations should look to cannibalize their existing business models and keep reinventing them. Netflix is a great example of a company that reinvented itself 4 times. They reinvented their business model from mailing DVDs to digital streaming services to the original content and now focusing on their international expansion strategy.
One time transformation is insufficient, a lot of organizations do once but many falter in their ability to drive constant innovation. This inability is usually because they are afraid to touch their existing “cash cows”, reduce costs and invest in innovation and R&D. Organizations that are constantly looking for new opportunities can stay ahead of their competition and continue to disrupt their industries.
In conclusion, organizations that focus on “Continuous Next” can continually:
- Give rise to completely new business models;
- Dramatically improve their internal business processes &
- Introduce game-changing products and services
