Morning Paul Forrest shared on Linkedin an article by Peter Bryant on ‘Why Mature Companies fail at leading Digital Transformation’. I respect both of them a lot, but unfortunately Peter Bryant is wrong in his explanation of why mature organsations fail at leading digital transformation. Why? Well let’s take this example of what he writes:
‘Transformative innovation—often thought of as digital transformation—is extremely difficult for incumbents, as markets have given companies like Amazon and Google an incredible and unfair advantage.’.
Is what Peter Bryant writes here true? No it is not. Mature companies are not victims of an incredible and unfair advantage that Amazon and Google have.
‘Mature companies are not victims of an incredible and unfair advantage’
Why executives of mature companies should not be cry babies.
Executves of mature companies are the only ones to blame for the situation they are currently in in the period of ‘online shakeout’. Including in Financial Services. Like one of my former Compliance colleague from the U.S. once siad to me just after 9/11:
‘Most of our pain is self-inflicted’
And that goes for us as independent entrepreneurs and for many executives of incumbents/mature companies that are now complaining about that ‘unfair advantage’. Why?
Because executives of many large mature companies have been focusing on cost-cutting (becoming ‘Operational Excellent’) and on each other (‘benchmarking with dinosaurs’ as I call it since 2001) they have been automating and ‘Lean-ing’ their old inside-out processes and they have forgotten to create real value for their most valuable customers.
And they took the wrong decisions in a number of other areas….and they still do. The good news is that some executives I meet are actually doing that. Most of them are actually founders of successful startups or partners in successful scaleups with an entrepeneurial mindset in combination with a corporate background.
So that’s the good news!
Well, that was it for this Sunday morning. Bookmark this category of blogs if you want to get more tips and tricks on how to select the right approach to digital transformartion and change to survive the online shakeout as a mature company or large incumbent.
Tony de Bree