As enterprises concern themselves with the companies that have been disrupted over the past decade, new competitors are rising. According to a study by Washington University’s John M. Olin School of Business, 40% of the Fortune 500 companies from 2014 won’t exist by 2024.
While Fortune 500 turnover has been the result of mergers, acquisitions, and bankruptcies, the driving force behind these changes has been failure to adapt to disruption.
Emerging disruptors have the freedom to leverage technology to capture market share. Meanwhile, many incumbent executives are failing to recognize their blind spot for the speed with which technology is changing business.
Full write-up: https://by.dialexa.com/technology-cant-solve-disruption-challenges-alone-enterprises-need-better-strategies
1. Technology Can’t Solve Disruption
Challenges Alone - Enterprises
Need Better Strategies
by Russell Villemez
https://by.dialexa.com/technology-cant-solve-disruption-challenges-alone-enterprises-
need-better-strategies
2. Dialexa
We are on a mission to make every
company a great technology company.
We work with organizations to define and
execute digital transformation strategies to
improve business operations and customer
experiences. Our services include:
• Multi-Year Technology Roadmap
• Platform Engineering
• User Experience Design
• Custom Software Development
• Hardware Prototyping /IoT
3. As enterprises concern
themselves with the companies
that have been disrupted over the
past decade, new competitors are
rising. According to a study by
Washington University’s John M.
Olin School of Business, 40% of
the Fortune 500 companies from
2014 won’t exist by 2024.
Get the full write up of
this slideshare HERE
4. While Fortune 500 turnover has been
the result of mergers, acquisitions, and
bankruptcies, the driving force behind
these changes has been failure to
adapt to disruption.
Get the full write up of
this slideshare HERE
5. Emerging disruptors have
the freedom to leverage
technology to capture
market share. Meanwhile,
many incumbent
executives are failing to
recognize their blind spot
for the speed with which
technology is changing
business.
Get the full write up of
this slideshare HERE
6. Even the companies that recognize a need to change face
challenges. Changes in the marketplace, competitors coming into the
market from new angles, new product strategies - things are moving
too quickly for enterprises to always build new technology internally.
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this slideshare HERE
7. Instead, they turn to
mergers and
acquisitions or try
to work differently
with partners to
incorporate new
capabilities in their
organizations.
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this slideshare HERE
8. The problem with this approach to
change is that it creates discontinuities
in business operations - both today and
in the future.
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this slideshare HERE
9. Each piece of technology was built with a specific set
of business operations in mind. Stacking them on top
of each other increases complexities that become so
intertwined that it’s almost impossible for enterprises
to reach their intended operational future.
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this slideshare HERE
10. CIOs can’t just solve
these multifaceted
problems by
implementing more
technology on top of old
technology or planning
a single project within
the course of a budget
cycle. It takes time to
unravel the complexities
and realign enterprise
technology to achieve
ongoing success with
digital transformation.
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this slideshare HERE
11. Solving the operational discontinuities and
enterprise technology complexity requires a strategy
that is more deliberate and ongoing compared to the
typical short-term approaches executives take.
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this slideshare HERE
12. Instead, CIOs should
develop integrated, multi-
year roadmaps that
simultaneously address
both complexity and
disruptive innovation as
a way of life. This
mindset has implications
on everything from
business renewal to
budgeting to architecture
to software development.
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this slideshare HERE
13. RECOGNIZING THE NEED FOR
A NEW ENTERPRISE
TECHNOLOGY STRATEGY
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this slideshare HERE
14. Start-up disruptors have an
inherent advantage over their
incumbent competitors - they
are unhindered by enterprise
technology complexities.
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this slideshare HERE
15. If enterprise executives could spend their
money on innovation rather than dealing with
these complexities, it would be easier to spot
the white space available to earn revenue,
rather than thinking of how to increase
profits in the existing market.
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this slideshare HERE
16. The reality of enterprise
technology complexity
forces CIOs to go on the
defensive, addressing only
urgent symptoms and
easily-fixed operational
problems with new
technology, thus adding to
the ongoing issue.
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this slideshare HERE
17. It can be difficult for CIOs to get their business partners
to recognize the need for a newenterprise technology
strategy - these partners want quick wins and fast
results, not a 3-year plan for massive investment.
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this slideshare HERE
18. Education and timing is
very important to
obtaining the buy-in
necessary for changing
the way IT strategy and
innovation is done. From
a timing perspective,
many scenarios exist.
But some of the most
common are:
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this slideshare HERE
19. Mergers and Acquisitions
As discussed, mergers and
acquisitions for short-term
tech capabilities lead to
long-standing complexity.
So many enterprises are
still using mainframes,
client server systems, or
are still largely in a web
environment because those
were the technologies that
were state of the art at the
time of the acquisitions.
However, tech is now
cloud-centric and trending
toward micro-services.
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this slideshare HERE
20. Get the full write up of
this slideshare HERE
Mergers and Acquisitions Cont.
During periods of organic
growth, it’s easy to see the
wisdom of just stabilizing and
scaling. But mergers,
acquisitions, consolidations, etc.
represent some of the best
catalysts for resetting the
strategy for transforming the
enterprise landscape. These are
great opportunities for attacking
operational complexity,
preventing technology sprawl,
future-proofing against ongoing
disruptions and capitalizing on
faster innovation cycles.
21. To read more you can find the full article at
https://by.dialexa.com/technology-cant-solve-disruption-
challenges-alone-enterprises-need-better-strategies
22. Get the full write up of
this slideshare HERE
New CIO Hired
When a new CIO is hired, he or
she may be from outside the
company and must quickly come
to terms with what they’ve
inherited. For example, amidst
rapid business change, CIOs can
face two types of challenges -
concrete organizational
challenges and softer challenges
surrounding culture and talent.
23. Get the full write up of
this slideshare HERENew CIO Hired Cont.
Meanwhile, business partners
want a quick fix to their problems,
which are often caused by the lack
of attention to complexity in the
years leading up to the exit of
prior CIOs. An outsider
perspective could be the perfect
time to recognize the macro-level
issues and educate the business
partners on how instrumental they
are to addressing root causes.
24. Get the full write up of
this slideshare HERE
Eroding Margins
MCFO’s often look at the technology function as an indirect or SG&A
cost. So when margin pressures force a cost reduction exercise, the
technology function is scrutinized for excessive expense. Salaries,
bonuses, travel, training, software licenses, etc. are all on the table. The
CIO’s challenge is to demonstrate an alternative: that is, the role of
technology in driving out costs in the rest of business, which should be a
force multiplier compared to straight up budget cuts.
25. The first step is to establish the
relationship between excessive
business operations complexity
(and cost) and technology
spending. The CIO is often the
only executive that has visibility
into existing redundancies and
inefficiencies since they are
always manifested in
duplicative systems.
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this slideshare HERE
26. The second step is to establish the benefit of
reducing this complexity - not only in terms of
business costs, but also in terms of technology
leverage.
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this slideshare HERE
27. Having problems defining and executing your real
-world digital transformation strategy?
Download or free eBook:
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business-outcomes
28. Attacking this complexity in the technology function
frees up incremental IT investment spending for
disruptive innovation. Incremental funding for new
areas may still be required, but it’s important to
exploit every possible avenue for turning the
technology function into an operational lever
instead of being a consumer of corporate expense.
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this slideshare HERE
29. And the inverse is also
true. Incremental funding
by itself cannot eliminate
the sources of complexity.
It requires a business/
technology partnership.
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this slideshare HERE
30. The bottom line is that
enterprises must
understand that what
they think they want
(silver-bullet technology
to fix an immediate
problem) is what
causes the macro-level
complexities that hinder
digital innovation.
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this slideshare HERE
31. There will always be
tactical problems, which
is why a business-driven
technology strategy isn’t
just a 3-year strategy to
invest heavily in on
overhauling enterprise
technology - it’s a multi-
year plan that lays out
both tactical and long-
term expectations.
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this slideshare HERE