This article is just a PoV approach from the recent business scenario (specific to India).
Does it imperative to classify your Digital stream from the rest of Organization portfolio? Certainly, no regulation is expecting the organizations to do so. But, its highly critical from other scenarios – business competition, organic maturity, potential growth through inorganic way, regulatory evidence, exhibiting the organization competency through evidences, leadership outlook etc.,
“TCS” is a leading IT company in India, and they are into many streams of business including key government projects in India. Recently, its CEO said, the classification of digital identity is no more relevant, as most of projects having a significant presence of digital element to it. He added, its artificial if we trying to differentiate it while in absence of common understanding of digital definition. In fact, most of leading IT companies are sync with this approach and practicing in India.
On the other side, Adobe claimed superior revenue position of $11bn revenue for the first time since 1982, based on the recent strategic acquisition of 2 firms ($1.76 billion magento and $4.75 billion marketo). And, its CEO reasoning that these acquisitions are key contributors to this record-revenue figures due to underlying DX capability of targeted firms. Now, Adobe became a third most valuable company by market capitalization of $150 bn, next to MicroSoft and Oracle.
Hence, these 2 extreme thought-process trigger my thoughts further,
Recollecting Peter Drucker (Management Guru) quotes – “You cant improve what you can’t measure? ” in this context. It is very important to measure and set metrics around any unit of business and its benefits are multi-folded for the health of organization. And, Organization should keep their focus on these four dimensions (BSc – Kaplan) and hence, i try to leverage the same framework in measuring DX too.
Dimension 1 – CUSTOMER
Key Driver 1 – Test your understanding around your B2B/B2C/C2C digital strategy and their value chain benefits. It enable you to assess the relevant gaps and frame a relevant policy / processes to meet it.
Key Driver 2 – Above understanding enable you to classify your business line to be classified under Digital / Not Digital
Dimension 2 – FINANCE
Key Driver 1 – To align your available investments to prioritized requirements / use case / initiatives, and identify further source of investments for future road-maps
Key Driver 2 – To visit / frame a new revenue target model and its related reasoning for achieving / not achieving in different sale period. Also, it enable to do effective forecasting / patterns too
Dimension 3 – Internal Processes
Key Driver 1 – To rejuvenate the legacy process / qualify to retire the existing process which doesnt add value to own / target teams. This step enables to identify the automation opportunities, optimization opportunities etc., It is good to see that 70:30, 80:20 ratio of automated efforts and certainly this improve the revenue streams.
Key Driver 2 – Rationalization effect will naturally consolidate your organization interest in all aspects, and gives a great external look to all stakeholders.
Dimension 4 – Employee Engagement
Key Driver 1 – Learning programs can be re designed and aligned to academic / skill gaps with respect to digital
Key Driver 2 – Outcome of business performance can be clearly evidenced through employee performance and thus, employee engagement assurance is in place. This will remove the attrition issue, poor performance, imbalanced work culture in a long-term.
To summarize, these are the guiding lights which most of organizations are currently doing at Organization level / Business Unit level. But, it would be good to have a new score card to manage at DX at a consolidated level or BU level as per the feasibility.
Please do reflect….