Last week in the UK, two household name companies went into bankruptcy. Toys r Us and Maplin Electronics. Both are significant high street retailers operating in different sectors. These are companies that have enjoyed significant success over the years, have revenues in the 100’s of millions or billions of pounds and employ thousands of staff across the UK whose jobs are now likely to be in jeopardy.
Why should business leaders in South East Asia be concerned about events like this so far afield? It’s a salutary lesson for business leaders that the ingredients of your success that are working today, are very unlikely to work tomorrow.
However, the challenge to transform is not always straight forward. If you want to avoid the transformation graveyard, there are three important stages that need to be adopted.
Stage 1 – Acknowledgement - CEO’s and the executive leadership team
need to acknowledge that data and insights, combined with technology, has the capacity to rewrite the rules of your industry and drive board-level initiatives.
Stage 2 – Educate and Understand – Executives need to take time to learn and understand what technology can do and how it can manifest change in their industries.
Stage 3 – Plan and Strategise - Build a strategy to preserve your existing business, mitigate against new competition and implement a strategy to take advantage of new data-driven business models.
These stages are easy to outline but far more difficult to deliver in practice. For many established bricks and mortar companies, adopting new data driven business models can threaten their own core business and can have the effect of undermining their own profitability. In essence, it’s easier for a start-up to benefit from disruption than for an established company to disrupt itself!
The process is fraught with dilemmas and risk. At the heart of this transformation is how organizations use data to drive competitive advantage and create new business opportunities for themselves. Cloudera has successfully helped customers, such as Bank Mandiri and Octo Telematics to harness the power of data through machine learning and analytics to drive digital transformation within their industries.
Whether you do so with us or start the journey on your own, our advice is simple. Start working through these stages if not risk ending up in the transformation graveyard.