Business Transformation Requires Transformational Leaders

Collaboration is a key factor in solving many complex problems, including the one we currently face. In fact, collaboration is a new paradigm that is increasingly finding its way into many traditional practices, including the modern corporation, where it has been introduced via horizontal organizations. Horizontal organizations are based on collaboration and trust as their default strategy. This kind of organization increases employee satisfaction and builds higher profits. In this Advisor, we examine how practices such as an open-book management policy (OBM), consent decision making, and a bold profit-sharing policy lead to greater profit and, ultimately, real customer satisfaction.

The time-honored approach to quantifying markets is to work outward from a specific technology or tool to a targeted customer who will potentially use the technology in myriad ways. These potential markets with applicable benefit from the technology are then tabulated into initial total addressable markets (TAMs). In turn, the TAMs help justify strategic investment in an organization or the investment round in a startup.

The job of the IT strategy isn’t to align to the business strategy. It’s to give the business people who create it as many options to change tack as possible. It’s a provider of IT capability in support of strategic business capabilities. Supporting, enabling, and aligning with core business capabilities equals competitive advantage when the business strategy is a good one.

Economic lockdowns in the COVID-19 crisis have quickly and severely compromised the automotive supply chain and dealerships worldwide in unprecedented ways. The recession after the crisis will cut global car demand by multi-digit percentages in 2020, followed by a slow recovery that will lag GDP rebound by one or two years. By the time car sales reach pre-crisis levels again in two to three years, powertrain electrification and digitalization will have made additional advances, just as buyers are returning to the market. This confluence creates opportunities in the automotive crisis recovery for those in the industry who set themselves on the right course now.

Vendors are now offering IT solutions designed specifically to help businesses enforce social distancing practices and support automated contact tracing in the workplace.

Today’s corporate world requires companies to look for a clear purpose for their business ventures, beyond solely maximizing profits. This purpose — or the why — is essential for future success in an ever-changing, increasingly digital business environment. As this Executive Update highlights, today’s companies must not only convince their customers of their offerings, but they also must convey opportunities to their investors and company strategy to their employees through the flywheel concept.

This Executive Update explores opportunities for strategy execution, the role of business architecture and the resulting benefits, collaboration with other teams, and some steps we can take to move into action.