Tribuna Libre | Diario Financiero | Mario Mora
Pervasive digital technology” is an impressive reality; and the cloud, sensors, and cell phones all come together in what we now call the ‘Internet of Things’; a new field that will make machines smarter and people more capable (driverless cars; smart homes, factories, and cities; and whatever else the imagination can come up with).
No one doubts that we are living a new and profound industrial revolution, where “hyper connectivity and instantaneity” stand as icons that characterize this new reality. The implications are great for all actors in the corporate world, especially for CEOs. In this new world, it is no longer enough to show incremental improvements to leave the competition behind. As theoretical and exhausting as it may sound, winning today is a function of continuous transformation; of the way we do business, relate to customers, manage information, and so on.
The technological catalysts of this new industrial revolution are already here, albeit at different levels of development for the markets. Pervasive digital technology” is an impressive reality; and the cloud, sensors, and cell phones all come together in what we now call the ‘Internet of Things’; a new field that will make machines smarter and people more capable (driverless cars; smart homes, factories and cities, and whatever else the imagination can come up with).
However, make no mistake: transforming a business can be much more complex than having a disruptive business mindset. Disruptors” are generally entrepreneurs starting something, who play offense, and carry a light backpack, where ideas and conviction are the most important load. In contrast, pushing a transformation in an established company, with a significant asset structure and capital requirements, is very different. Here, a strong offensive on the new must be balanced with a solid defense of the core business.
In this context, any general manager facing a transformation process of this nature should keep in mind a few considerations. The first is to understand that the core business must be kept healthy at all costs, since it provides the platform and flow necessary to launch, in parallel, “disruptive moves” with high potential value. The second has to do with the acceptance that the days of defining strategies for many years are over; agility is now as important as the content of a strategy, and strategies have an increasingly shorter life cycle. The third relates to the decision to go the extra mile to attract the best talent available. The difference between good and excellent is order of magnitude. The fourth has to do with defining a meaningful purpose that will serve as a permanent north to guide the CEO and the entire organization as they travel along this road full of change and uncertainty, so typical of transformation.
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