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DIGITAL OPERATIONAL MODEL PRACTICE

Innovation / Strategy

| Mc Kinsey |

 

Imagine you stay in calm waters and there is a tsunami approaching. What do you do? The same probably is happening to many companies in front of the coming digitalization which will catch all parts of our lives. What has reached us is only the beginning, some of our clients have been already disrupted heavily by this tech-tsunami. We need to adapt our way of doing business in order to have a future. The more tech-dependent sectors and societies it will reach faster. 


The challenges are overwhelming. There are actions needed on several fronts. Not only coping with the complexity to integrate or adapt our business processes to and with the technological opportunities, but also the client’s new opportunities with technology to be part of the process and influence the process in case of an emergency. The factor ‘how our people embed technology’ how they accept, adapt and cope with the increasingly networked challenges to come, and how to train them must not be underestimated. 

All of a sudden, traditional firms have to be innovative, but they don’t have innovation in their DNA. The digital opportunities will disrupt it all, faster or slower. A study from McKinsey shows in the insurance sector those companies affected by the digital tsunami, those with the highest revenue and earnings are at the forefront to lead the changes. This might be an interesting example from a service sector using big data, is very dependent on software use and technology which has parallels to our industry. 
https://www.mckinsey.com/industries/financial-services/our-insights/the-age-of-innovation

Now by creating the awareness of the need for innovation, an important driver is enabled. But what’s next? Don’t we see so many examples where companies invest in IoT and think they are now more digital? What lacks? Why do they not succeed in convincing clients to change or employees to handle those many new opportunities correctly to turn it into faster-growing revenues and earnings? It might lack the digital-strategy based on a sound digital-strategy framework. 

We can bring it to a short equation; either you are the disruptor in your industry, or you become one of the disrupted. Become disrupted means challenged by surprise, not being prepared, earlier rather than later, when one has sufficient time for long-term planning. 

Coping with digitalization from a strategic point of view, we recommend you to read two articles, both from McKinsey, about digitalization and innovation and digital strategy economics. In essence, they both very much apply also to the security industry in change. https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-economic-essentials-of-digital-strategy

 

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