Don’t Assume, Always Ask
September 14, 2020
The fundamental rules and the governing dynamics of organisations value proposition is changing rapidly in this digital era. Managers and stakeholders have different viewpoints and there is confusion on what can be done for strategic differentiation and transformation. A holistic view of digital transformation is evolving out of five key domains – customer, competition, data, operation and value. Each of these domains have a core theme which is guiding us with a point of departure for our digital journey. Organizations are cautious and calculative in their digital strategy and approaches –
- Boosting the effectiveness of existing business models through digital approaches and tools
- A small scale disruption of their own business model to enter a new space or redefine an existing one
- Establish a new superior business model to replace the old one
Today I am going to talk about the first two digital forces – Customers & Competitions. Customer behaviour is changing. They are more tightly connected networks rather than isolated individuals. What is of vital importance is to harness the customer networks – learning to engage, empower and connect with them beyond the initial touchpoint. Organizations are dealing with asymmetric challenges that are reshuffling the role of competition in almost every industry. Building a platform is emerging as a great strategic move rather than just building products and services.
A platform is a business that create value by facilitating direct interactions between two or more distinct types of customers (who could be buyers and sellers, software developers, consumers, merchants, card holders and banks, etc.) of the platform. Here each party plays a different role and contributes and receives different kind of value. Emerging technologies are reducing the transaction cost of finding and selling products and services, thereby fuelling the platform based models. In the connected world, the battle is no longer fought among products. Instead, competitive advantage comes from building a platform that has an eco-system around it.
Tacto is a growing tribe of technologists, we selectively advice, design, build, promote and invest in world class scalable solutions using technology. Two out of Three platforms that we have built have unlocked significant value for their promoters through sale or scale. We partner with ambitious business leaders to build highly impactful internet products and solutions. To know more about us please visit www.tacto.in
I will connect with you again to discuss about the remaining three digital forces shaping the digital world – data, operation and value. Till then have a nice day!
