TeQflo Master Surfer 2

Digital Masters

Is your business fully optimized for the fast-moving digital evolution? By becoming a Digital Master, you will have paved a strong path for success! Times are ever-changing, sustainable businesses are the future and we can grant you all the insights. Grow your digital mastermind and your organization along with it.

Digital masters simply outclass their competition!

The Digital Master Benefits – Why You Need to Care

Companies that adapt to the new digital era are producing better results. Hands down. Are you truly where you want to be with your business digitally? With all due respect: probably not. Only a handful of all businesses are what we call Digital Masters. Understanding the digital ecosystem will make you widen your views and eventually get a grasp of all the benefits that goes along with it.

When mastering digital technologies, companies are able to increase their profit and productivity.

So, what signifies these so called elites of digital business? For a start, they generate 9% more revenue than the average corporate competition. And how about this: when it comes to profitability, these digital innovators excel with being 26% more profitable compared to their peers. Now that's some serious numbers.


» Let's break down the most important points to why you should take this seriously:

  • The second machine age – most aren't ready!
  • A Digital Master; what symbolises one?
  • Digital transformation – why and how to start
  • Customer satisfaction – will you be able to keep up?
Let's glance back – to the Industrial Revolution – for a better understanding of the evolution that has led us to the rapid need of digital advancements. During this time, man labor was brought a more efficient stance; new machines changed the economy, capitalism and the whole marketplace. Companies wanting to survive had to adapt and prosper. Are you recognising the similarities between then and now? That's right. It's truly time to act...

Digital Mastery: An Introduction

Today we operate in a customer-centric era. It's all about the User Experience (UX) and thus how companies make the client their center piece in most operations. At Nike, customers are able to fully customise their whole shopping experience through a fully tailored shoe selection. And how? Digital tools create opportunities to satisfy your client-base on a whole other level!

It comes down to re-inventing the digital approach. This is where Nike has been one of the front runners – especially with their FuelBand they managed to create a deeper bond when connecting with athletes digitally. Gathering data from active sportsmen granted the ability to track true user needs. Nike listened to the customer and strove to improve the digital experience from a user-centered perspective. Now that's proper UX.


» So, to master and more so take control over your company's digital routines, there are a few essentials:

  • Integration of stakeholders, employees and customers --> digital ecosystem
  • Digitalise internal operations to raise the level of efficiency and productivity
  • Agile leadership capabilities with implementation of digital technologies

The three insights above ultimately forms a Digital Master DNA. The question you need to ask yourself following the above statement is simple: how is your business using digital technologies to get ahead? In the book Leading Digital by Andrew McAfee et al., they reached out to 150 executives in 50 large corporation around the world. The objective: to find out these leaders' approaches to digital obstacles along with current usage of fresh technology.

It's not a surprise that most of the companies already were investing in new tech – ranging from Social Media to Mobility and Analytics. However, only a handful stood out from the pack: Digital Masters. So, what are they doing differently? For once, lead change is a critical factor to digital success. It's not only about what these firms chose to invest in, no, but more so focus on digital leadership. Agility and the aptitude towards digitalised activities ultimately form Digital Masters.

The Four Levels of Digital Mastery

Let's dig a bit deeper. Since Nike, that you've touched on in the What is Digital Mastery-section  above, excels both in their digital and leadership dimensions – how are other firms doing when comparing? Placing these two dimensions together, the outcome forms Digital Mastery in four scales:

 The four levels of digital mastery displays how well adapted a company is to the digital era that we live in.Source: "The Digital Advantage: How Digital Leader Outperform Their Peers in Every Industry," Capgemini Consulting and MIT Center for Digital Business, November 2012.

 

Beginners

How can you tell if you're classified as a Beginner according to the scale? You might just be starting out, and if so, it would be essential not to fall into a common trap: the wait-and-see strategy. This tactic from a beginner's perspective is about growing a sense of certainty before making any moves (with the methodology of that digital opportunities are better suitable for other industries and not theirs). Clearly take note on that this hesitancy can be damaging for your business and something to generally avoid. Some also lack the leadership capacity required where proper training needs to be scouted out and implemented as a company routine.

Fashionistas

A group that are non-traditional in the sense of not waiting around but rather so buys into the new digital trends are the Fashionistas. Despite being very open-minded when it comes to digital innovation, that doesn't classify them as Masters of the Digital craft. To reach that level, leadership capabilities must cope with digital initiatives. Where there's an overflow of trendiness – discipline often falls behind.

If a company is investing in new technology, a governance and robust digital leadership must be present throughout. Otherwise, you'll just waste a lot of what you spend. Or, if there's no spending issues, it could also be a case of that Fashionistas are forced to reverse a majority of their actions which is highly cost-inefficient. Don't get me wrong here; there's nothing bad about testing out new things to find the optimal solution. However, here's why the Fashionistas' path to Digital Mastering falls short:

  • A clear mechanism behind coordination of activities (reliable framework)
  • Customer engagement and follow-up is crucial – and without guidelines –  the how-to structure diminishes
  • Internal communication becomes too ad-hoc due to the lack of digital governance

Conservatives    

What about the more traditional leadership in form of conservatism? A main problem here is the opposite to that of the Fashionistas. When you're not bothered by rapid technological advancement, the tendency often falls into very careful consideration and coordination of any digital investments. Don't let this happen to your business – and of course – that's easier said than done, but entering this new era of digitalisation it's vital not to lose ground versus competitors by cutting out innovation. Framework, structure and processes are of course important – but it eventually comes down to balance. Only focusing on a structured thinking pattern could ultimately be your downfall.

Being a conservative is a type of business that is strong on leadership, but weaker on digital capacities.    

If you slightly recognise yourself in the Conservative category; did you generate any doubt to your current digital approaches? We get it though. Leaders in more conservative-oriented companies are usually experienced and have seen a lot. Time is scarce (not to mention tasks and capital) and the idea of that making mistakes would waste any of those elements is unbearable to many. Too much cautiousness can create an authority trap where focus is more on standards and monitoring than making advancements. Breaking down the conservative effects on business operation would look something like this:

  • Mobilisation of top management crumbles – leading to slow and standardised decision making
  • Unhealthy caution makes the whole organisation move slower  – a strong, common vision is lacking
  • In the end, progression comes to a standstill due to an overlaying fear of making mistakes

 

Digital Mastery – It Does Matter

At the end of the day, it comes down to exceeding the difficulties that your competitors are facing. This is where Digital Masters excel. They know where to turn when it's time to invest, and their leaders commit to strong, digital guidance for what the future demands of them. Because let's face it: using your digital advantage correctly can grant you a supreme position in the industrial space.

But... how could you measure the effectiveness of digital advancement compared to your peers? Because sure, the Four Levels of Digital Mastery provides an initial indicator to where you're at, but let's put this on another piece of paper. In the book, Leading Digital,  a survey was conducted involving 391 enterprises in thirty countries. This survey was narrowed down to large corporations with >$500 million in revenues.

Using statistical methods, the goal was to find out how the two vital parts of digital mastery – digital leadership and digital capabilities – are linked with various sorts of performance. Remember the increased profit and revenue you could generate from steering towards becoming a Digital Master? Think of the graph below as an elevated version of the Four Levels of Digital Mastery.  You should now be able to picture the advantages very clearly:

 

Displaying the revenue generation efficiency and profitability of the four different categories in the Four-level Digital Mastery quadrant.

     Source: Adapted from George Westerman et. al., "The Digital Advantage: How Digital Leaders Outperform Their Peers in Every Industry"

 

Interesting realisation, isn't it? Compared to the average corporate marketplace, a less restrictive mindset is the way to go – at least if you'd like an extra boost in revenue generation! And the varying numbers makes sense. Digital actions can reach much farther than physical ones in a lesser time-frame and increased efficiency. Let's take e-commerce as an example. In a rapidly expanding global market, the increasing volume for goods and services that businesses are facing – nothing can handle it better than digitalised implementations. Not to mention the capacity of reaching out to people; the ability to create trends on Social Media and the use of improved call centers & mobile devices for levering sales people are significant benefits.


» Let us quickly summarise and gasp in the most important advantage of becoming a Digital Master: performance!

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In the 'Profitability'-graph, we find that Digital Masters excel in hefty fashion with being 26% more profitable than their peers. However, this time around, Conservatives is the group that's on the positive spectrum, having 9% additional profit vs. the average – scuffing away even the more revenue efficient Fashionistas. It doesn't shy away form the fact though that once again – smart, digital endeavors win. This points out that strong leadership is important, but that it has to be forward-thinking as well. Keep in mind that we're talking about large firms here. With revenues of $500+ million or more, the monetary advantage could be immense down the line.

Time is Scarce – Why You Need to Act Now

Building your digital capability can take some time. But hey – it will always be worth it. Why? Because it will make future digital initiatives and investments less risky and easier. With other words, the sooner you get the steam wheel rolling – the smoother your company will operate! It's important to understand the urgency of Digital Transformation. This is happening right now, and if you don't want to fall behind – it's high time to act!

Of course, the need to hurry is different from industry to industry. If you're in the Travel & Hospitality or Telecom field, where digital competitors have excised for years, things are moving faster. Pharmaceuticals and Manufacturing companies are however not as competitor-steep – strong threats are yet to materialise into a digital format. Ask yourself – is time truly on your side?

With rapid digital advancements and opportunities, a company cannot wait around. It is time to act now.

It might be tempting to assume that you can wait, especially if being in the Beginner quadrant of the graphIn addition, if your whole industry is slacking behind – why would you be one of the first to invest capital and effort? That's reasonable thinking. It's however wrong. With it always being worth to invest in wise tools that increases both your digital and leadership capabilities, it's rational to think that catching up with Digital Masters in the high tech industry will be a rapid journey.


» Focus on your own playground while tracking competitors. With advancing before they do – a lot of ground will be gained – and that'll probably cover more than enough road for you to be highly successful in your sphere.


 

Getting Started: Customising Your Path

How did a giant like Nike do it? It might be easy to assume that they almost were born Digital Masters. But no – this retail colossal took the path from being a Fashionista. They started developing digital aptitudes secluded from other departments. Eventually, the Nike Digital Sport unit worked as catalyst, where the company combined and added digital and leadership capabilities gained from previously isolated digital advancement development. With that being said; everyone, including yourself and your company, will have to carve out a road that works best for you.

But what if you're a Beginner? Could you still take the leap straight to becoming a Digital Master? It's unusual but sure is possible. The main issue would be your competitors that already are ahead. While you're trying to find your methods and ways – your rivals might exploit your challenges and gain ground on not going towards that same direction.

The huge fashion retailer – Burberry – took this instant leap from being a Beginner, and they did it successfully. Being in certain industries, e.g. information services, entertainment or media, you might already be at a crisis in form of standing on a "scorching platform". In these cases, the best way may be to try going for that direct leap from Beginner to Digital Master.


» Now that you've read through a few of the examples above, it's time to break down the three categories lacking behind digital mastery to map out your firm's main specific challenges...

 

Beginners

Challenges:

  • Management not sold on the commercial value of progressive digital tech.
  • A few attempts might be carried out – however, nothing that yields ROI
  • Digital culture = premature

Ways to improve:

  • Experiment on touching the digital surface, e.g. in an internal department
  • Build a digital vision from there, step-by-step, e.g. 'what works best'?
  • Start with your most natural capability – then, when ready for it, more advanced directions could be implemented

Fashionistas

Challenges:

  • Advanced digital traits are present – but operating in silos
  • No comprehensive vision and half-baked coordination
  • Any digital culture might exist – but only through secluded silos

Ways to improve:

  • Innovate smart digital capabilities – but doing it cross-department-style while building stronger leadership aptitudes around these initiatives
  • Self-assessment and external education regarding leadership capabilities, while also looking into how Fashionista competitors have advanced
  • Stick to building just a few processes – a wide variety hinders opportunities to advance

Conservatives

 Challenges:

  • Thorough digital vision – but often less developed
  • The ground for digitalised activities might be outlaid – though not many of the visions are developed or advanced
  • Strong digital governance and structure across departments is hindering a more advanced digital working procedure to take place

Ways to improve: 

  • Making use of your digital leadership advantages to also implement new digital competencies
  • With experienced executives being aware of the "know-hows" – the expertise should be able to influence innovative digital initiatives across departments
  • Create an overarching vision of becoming a more cohesive company – make it happen through IT capabilities to then transform customer outreach, internal activities, and business outlines

» Becoming a Digital Master won't happen overnight. Not for anyone. Embracing your company's weaknesses is a must in order to prosper and grow. The most important question you should ask yourself, especially considering your competitors, would be: do you really have time to wait?... 


   

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