New World Order: The Digital And Generational Transformation Effect
By Laure Poquette,
Published on July 27, 2015
This is first in a two-part blog series exploring
the transformative effect of the digital world on today’s workforce
generations.
By definition, transformations are not linear but
exponential in how quickly they change our world order, and with it, our
business models. In today’s “cradle of innovation,” we have the tools, capital,
and instantaneous global reach to compress the cycle of ideation to market
impact at transformational rates across even our most capital-intensive
industries. Barriers to entry are quickly becoming an illusion. The impact is
compounded when multiple transformational dynamics are in play simultaneously,
as we have today in the area of both digital connectivity and generational
workforce change.
Digital networks have laid the groundwork for
transformation change. The digital signal is transmitted perfectly over long
distance, can be replicated indefinitely once the base infrastructure is in
place, and can be expanded at near zero marginal cost. The value proposition is
beyond dispute – just look at the “digital effect” on Facebook’s consumer
business model or GE’s industrial Internet business-to-business (B2B) model.
This digital foundation has redefined both the capability and creativity of
technology, impacting a multitude of aspects, including access, speed,
connectivity, volume, usability, collaboration, and analytic insight.
The benefits of the exponentially expanding digital
technology to business models are still playing out, but the value proposition
centers on instant access to a larger addressable market for product and
services. The benefits of larger and accessible markets invite opportunity for
business growth and with it, opportunities for disruption as the lines blur
regarding the true source of your company’s value / revenue streams. Is it the
one-time value of the product or optimizing services associated with the
“outcome” the product produces over its lifecycle? What we know is that digital
transformation creates enabling technologies that lead to expanded business
markets at a rapid pace.
The validation is evidenced through:
·
Social
dialogue on products and services through billions of things shared on Facebook
and hundreds of millions of tweets
·
Tens of
billions of connected and smart devices communicating in real time
·
Trillions of
dollars of commerce electronically executed across business networks
·
Billions of
smartphone users
·
Exponentially
exploding waves of structured, unstructured, and sensor data that has hidden
value to business enterprises
·
In-memory
data processing that is 100,000 times faster than the traditional systems of
the last decade
The wheels of digital transformation are in motion
and are gaining speed. Many believe we are only in the early uptick of an
S-curve growth pattern. The new cadence of business is at the speed of
electronic circuits, and the relevancy of your business will be determined in
the “moment of decision.” Real-time business models enable the ability to
engage the moment with the right solution, at the right time, for the right
price, by leveraging the value of information moving through the consumer and
business interactions happening across our digitally enabled universe.
The second blog in this series will focus on the
nature of new business models in the digital age and the workforce generation
issues businesses need to understand to create a competitive advantage.
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