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The responsive enterprise is the new dynamic
Leading IT services, consulting and business solutions organization Tata Consultancy Services, (TCS) has called on businesses to rise to the challenges of technological change and evolve into what they call ‘the responsive enterprise’ according to a new report, Perspectives 7 - The Responsive Enterprise: Capitalizing on Disruptive Change.
“In the past, enterprises may have stood firm for decades, with a relatively small number of external risks impacting them,” says Tommi Mäkinen, Head of Digital Transformation, TCS Nordic. “That’s all changed. We have seen giants fall victim to fierce technological disruption. Faced with a hurricane of change, most enterprises are setting up shelters. However, the winners do not seek safe havens. They embrace the hurricane and leverage its energy for the benefit of their business.”
The six parameters of modern enterprise
The report lists the six main drivers of a responsive enterprise, one that adapts to the laws of the new, hyper-connected world, and comes out as a winner:
1) Building Digital DNA at the Top
In a responsive enterprise, senior executives believe that digital technologies have revolutionized their industry. A number of market watchers call this ‘digital DNA’. An executive team with digital DNA will reject conventional wisdom, while envisioning new ways in which digital technologies can deliver far greater value and performance than the traditional ways of doing business.
2) Melding Business Strategy with Operations-Design and IT Design
Digital technologies are forcing companies to rethink their business models as well as reengineering their business processes, Business strategy, operations design, and IT strategy can no longer be separate functional boxes on an organizational chart; leaders from each group need to be part of the same team.
3) Embracing Enterprise Systems and Enforcing Standard Processes
The days of building big custom systems are over— especially in customer-facing functions such as sales, marketing, and service. These functions need standard systems supporting standard business processes that can share information internally about customers. The future rests in agile development techniques that weave together business process design, IT software development, and IT operations.
4) Attracting and Developing Talent for the New, New Jobs
Companies need to build and attract talent for a new breed of employees with titles such as data scientists, IoT experts, and digital and social media marketers. Digital technologies have created entirely new roles and there will be a shortfall in the market in the next five years. When choosing candidates for retraining, the most important quality is attitude. Select those with ability and the desire to master new skills.
5) Accurately Detecting the Need for Business Model Innovation
Determining when to develop a new business model requires a highly proficient radar for detecting new technologies. How does a big company keep the right technologies on its radar screens, to ‘sense and respond’? The report discusses how to set up an effective radar and recommends that managers must consider the business model implications of technologies that may be truly disruptive to their firm’s business model.
6) Getting on Board a Fast-Moving Train
With so many moving parts in the present paradigm—in business models, business processes, technologies and skills—leaders face the monumental challenge of creating clarity out of the chaos. To get the organization on board that faster-than-ever moving train, a company must harness the flood of customer data, for instance, through social media, mobile apps, and embedded sensors in products. This new world of continuous feedback can help leaders reshape their companies’ futures.
