What is your best strategic option for Acceleration?
There is no organisation that has not embarked on some form of digital transformation, but this has raised a number of questions, specifically in the minds of the executive team. Is there a plan? Is this plan sufficiently ambitious? Is this transformation proceeding according to the plan? Many senior executives are seeking answers as they increasingly feel the need for their organisation to accelerate.
Acceleration of digital transformation needs a clear storyline. Devised, told by and supported by the executive levels of the organisation.
Based on an organisation’s current state, executives can choose between 4 archetypes of strategic options for acceleration:
- Do nothing new, maintain the current state.
- Invest in increasing digital maturity, prepare for the moment where business models can and must be improved by applying digital technologies
- Step up the organisation’s digital transformation capability, investing in business solutions directed at existing products or services to improve the bottom line
- Leapfrog by acquiring disruptive capabilities for launching a new business model
These options have distinct risk/reward profiles and are not mutually exclusive.
A prerequisite for providing direction is to have information on the organisation’s current state and put this information in the right context. Situational awareness building is crucial for senior executives to make the right risk/reward decisions on digital transformation. How can they become better observers for this? And how should they orient themselves so that they observe the right things and understand the context of what they’re seeing?
The OODA loop is a decision-making process that was first laid out by Air Force fighter pilot and military strategist Colonel John Boyd. The model outlines a four-point decision loop that supports quick, effective and proactive decision-making. The four stages are:
- Observe– collect current information from as many sources as practically possible.
- Orient– analyse this information, and use it to update your current reality.
- Decide– determine a course of action.
- Act– follow through on your decision.
You continue to cycle through the OODA Loop by observing the results of your actions, seeing whether you’ve achieved the results you intended, reviewing and revising your initial decision, and moving to your next action. In a head-to-head competition, like air-to-air combat, a violent confrontation in a parking lot, or even political contests, the person who can cycle through the OODA Loop the fastest wins.
Key digital situational awareness concepts for senior executives are:
Boundary Blurring – Do you have the know-how to recognise when and where the digital and physical worlds are merging and how that is going to alter your organisation’s DNA/business model?
Compound Uncertainty –Do you have the ability to assess the tipping points of technology, culture and regulation in your organisation and industry?
Resolution Revolution – Can you accurately measure and precisely control things and events?
Awareness is completed by views on implementation capabilities, such as adaptive power, digital literacy, financial resources and the capability of tapping in on key partners in your ecosystem.
Best Acceleration Route Analysis
DigitalMindZ’ is using situational awareness to enable decision making on the Best Acceleration Route. We lead senior executives through the OODA loop to generate momentum in digital transformation with a clear view and story to the rest of the organisation.