Business Strategies and Innovation for Digital Transformation 2.0
By 2021, Gartner predicts that 40% of organisations will use Enterprise Architecture to ideate new business innovations made possible by emerging technologies, and it will be implemented through real initiatives that combine the deployment of people, process and technology into a comprehensive whole.
Digital transformation visions ranging from all industries being disrupted and organisations rethinking their fundamental business model or place in the value chain, to companies lifting and shifting their old processes to a digital format. Innovation is the search for the new and it is less about efficiency or optimisation and more about the creative process of research, experimentation and discovery of unique offerings or approaches which offer limitless opportunities, an uncontested market that allows for a new competitive advantage.
Constant iteration needs to happen due to the pace of change in external environments. The organisations are exposed daily to new ideas that the business leaders will want to harness and experiment with. Innovation is the fuel of the next evolution where how the teams are set up to capture ideas, test and introduce into the digital ecosystem and the pace that the organisations can cycle through them and incorporate the useful ones will determine how fast they can evolve.
The need to be innovative is not new but in the digital age, it is crucial as a mean for organisations to survive. Gartner’s innovation effectiveness plays an important part in the ideation of new technology-enabled and data-driven business models where the success of digital innovation efforts depends on the organisation’s ability in identifying new opportunities, deciding which chance to pursue and altering the processes to act on those decisions.
Aligning Strategy and Innovativeness through Enterprise Architecture
The ideation of new technology and innovation trends will create better opportunities for the organisations where they can be ahead of their competition in using technology and have successful digital transformation efforts. Organisations that have a tendency to make ongoing improvements, with only a few benefits rather than identifying new markets and trends for new opportunities will most likely fail. This failure to innovate is mainly due to the lack of an ongoing innovation process, an obsession with business units working in silos, a limited understanding of clients and business needs and, finally, a lack of collaboration within the organisation and with external partners. The emergence of new innovation opportunities, which is encouraged, is a testament to the important alignment between the organisation’s strategy and innovativeness. This alignment involves the overall organisations and introduces a high degree of complexity that requires architecture discipline.
With Enterprise Architecture (EA), organisations will be able to ideate new capabilities that covers the methods, rules and postulates used to structure, plan, and implement the process in establishing EA to ensure a consistent and systematic approach. The developed strategy should include the focus on organisation’s landscape and all capabilities involved in a specific iteration. Successful execution of digital strategies is ensuring that the technology is flexible and adaptive to changes. Many organisations struggle to embrace new innovation, despite the importance of creating new business strategies in the digital age. Organisations should simplify the existing technologies and leverage on EA, as the EA can help to embrace new emerging innovation. With EA, the organisations should be able to make the necessary strategic technology investments for successful digital transformation.
Organisations and thought leaders should involve all business units and divisions in embracing the new emerging innovation as this will be able to stimulate strategic planning. It is also important for the organisations not to underestimate the necessary balance that must be achieved between business strategies and innovation in driving digital transformation. Organisations should also have the courage to invest in people development with the relevant competencies programme and strategic technology approach to promote innovation cultures.
Join ATD Solution, the sole authorised training provider of IASA’s enterprise architecture certification programmes in the upcoming C-Level Executives Virtual Discussion: Business Strategies for DX 2.0 (Business Innovation) this 18th March 2021 at 9.00AM (+8GMT/CST) to explore new business strategies to help your organisation thrive in Digital Transformation 2.0 (Business Innovation). Register here.
Author: Aaron Tan Dani
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