Business Transformation Requires Transformational Leaders

The CTOs of global industrial and manufacturing groups with technology-intensive products and services will tell you that despite the undeniable importance of startups and other external innovation ecosystem partners, internal R&D still needs to be at the core of the innovation effort. External parties are usually unable to make the necessary resource investments for long-term, core R&D. Moreover, maintain­ing leading competencies in core technology areas is usually vital to sustaining competitive advantage. However, there are multiple challenges in the traditional way of aligning R&D strategy and program activities.

The existing body of knowledge on ambidextrous principles provides a compelling academic framework but falls short of making it actionable within a real-life corporate context. To overcome this, we have developed the Ambidextrous Organization Development Canvas. In this Advisor, we share how applying our model to a broad range of organizations across multiple contexts has enabled us to decode and understand the underlying DNA of ambidextrous organizations.

Radical shifts in performance are the consequence of embedding proven technologies in the value stream to overcome factors that have traditionally limited performance. It is often unclear where to start the digital Lean journey and how to prioritize a company’s efforts and resources to drive tangible results. Indeed, choosing from among the plethora of new options provided by digital technologies is a real challenge.

Innovation ranges from new, radical business models (e.g., Uber) to low-technology marketing changes (e.g., Absolut honey-flavored vodka). This Advisor examines four main challenges within the ideation and idea management that is required before commercialization within technology-intensive industries.

The success metrics for the knowledge economy are less about output and more about outcome and impact. To measure such intangible qualities and how they are produced requires distinguishing efficiency from effectiveness. A team’s climate reflects the organizational culture, and it is an indi­cator of that culture’s levels of efficiency and effectiveness. From an Agile perspective, the combination of efficiency and effectiveness speaks to a team’s confidence that it is free to experiment, take risks, and learn from failure. In this Advisor, we assert two fundamental value-creation metrics for Agile organizations.

Pursuing a digital transformation strategy to position an organization as a market leader can be challenging, as both internal and external factors can significantly complicate and hinder progress and delay achieving aspirations. These challenges may include resistance to change, lack of a clear vision, data overload and utility, inflexible development processes, and business models that are constantly being reevaluated. Design thinking has emerged as a key forward-thinking tool and mindset to help overcome these challenges and accelerate the timeline for transformational work. Design thinking is a human-centric, collaborative, action-oriented process with a set of techniques and tools that help an organization drive change. In this Advisor, we take a closer look at four organizations that have successfully applied the design process as a core business strategy.

Connecting a platform with an existing company to a platform organization is beneficial for both established companies and insurtechs. Without pursuing that ave­nue, the insurtechs face the risk that their competitiveness may decline if others can copy their digital skills at low cost. Thus, connecting their platforms with the incumbent organizations that possess hard-to-copy capabilities guarantees the uniqueness and sustainability of their own business model. The disadvantages of established companies, in comparison to insurtechs, are the reason why tradi­tional companies need platforms. Platforms require changing the culture and business logic in a company from product to service dominance, making proc­esses in relevant areas real-time capable, opening the company to the reuse and integration of solutions and services from other actors, and replacing a hierarchical culture with modern, agile, team-oriented approaches that make optimal use of the internal and external workforce.

Here in Part II of this Executive Report series on the rise of cognitive computing, we dive into the commercial cognitive products, including cognitive development platforms, domain- and industry-specific cognitive platforms, and cognitive-powered solutions