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Business transformation report, by Tieto

My work is never dull. I frequently get involved in workshops and discussions with stakeholders from different industries, all battling the same core challenge. That of change and transformation. Recently I got a taste of private banking. I’m not going to share any of that, but it struck me how true much of this Business Transformation Report, from Tieto (a leading Nordic IT Service Company) and Kairos Future (Strategic Futures Consultants) is spot on and true based on the conversations. Some excerpts:

“Hand on heart: Is your prime goal with adopting new technology incremental change or radical innovation?”

”The reason we do not invest more in transformation is not lack of resources. It’s because we simply don’t know what to invest in”.

– Major Bank executive (Tieto report)

“Even though they might have a rough idea of where the market and technology is heading, they are uncertain of how the business models will play out and what the consequences will be. The questions those executives need to ask is: Will you be more certain if you sit waiting, or if you invest small in exploration and low-cost experimentation?”

Easier said than done, transforming and changing. But waiting to be sure isn’t the route you want to bet on.

Don’t just stand there (chapter):

  1. Do you have a clear view of where the future of your industry is heading over the next 3-7 years?
  2. Would you describe your company as an active future-oriented reallocator?
  3. Do you have a process for scouting and acquiring promising companies or technologies?
  4. Do you actively engage your partners and customers in co-creation activities to find the future for you?

“Consequently, having a culture where people are embracing or at least not rejecting changing behaviours (my marking), practices and attitudes is necessary if a fundamental transformation will ever take place.”

That’s an interesting distinction when working with change. You don’t have to focus on loving change, start by not disliking it so much, and from that position you can do things slightly different. Doesn’t sound as a big difference, but it is. Don’t go for daring to do things differently. Go for not being afraid of trying some things differently.

“As neurologists and neuroscientists say, we become what we constantly do. This is true not only metaphorically. Even our brains are being transformed and rewired as we start to use them in different ways. So fundamental transformation in terms of new practices and behaviours is – literally – fundamental.”

End of block quotes…

Full report accessible here.

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innovation, canibalization and re-evaluation

Apple is not only great at finding industries ripe for disruption, but also famous for canibalizing their own range. The iPhone ate the iPod. iPads are very much to blame for decreasing PC sales. The iPad Mini overtakes iPad (Maxi?). The reflex is normally to defend, not kill.

I still, after more than 30 years, don’t know what toothbrush brand I use. Honestly. And I don’t know what toothpaste brand I have at the moment. Honestly. I know it’s either Colgate or Pepsodent. One reason is that I don’t care, but the other is that there’s so much to choose from. I can’t remember ever knowingly having taken the same brand and model (!?) twice unless when it’s 2 for 1. I might be an exception, in which case I’m amazed by the rest of you.

Lately, lots of interesting facts and stats about the sharing of customers and consumers between brands have become available to an audience beyond that of brand planners, researchers, extremely fact hungry marketing specialists and so on. Most notably in his very accessible book “How Brands Grow“, which I recommend to all clients because it makes you think and re-evaluate.

TNS Incremental, argues that they can help identify innovations that drive incremental growth (as opposed to “growth” by way of canibalization), or rejected ideas due to bad total growth result. A pretty important distinction to make, especially in this news, news, news driven world.