On Forbes: Thanks to 4G and social media, the highlight reels of the lives of others often stir a jittery feeling. We sometimes find ourselves experiencing FOMO, or the “fear of missing out” and asking ourselves, “Why am I not doing those things?” FOMO is an experience that leaves some feeling like we really ought to do something more, something different and something spectacular. In business, FOMO is real and needs to be addressed, especially in a time where both traditional companies and disruptive new entrants are fighting for market share and trying to outdo one another. […]
In a study on disruption that Telstra conducted last year, we learned that 97% of organizations already have a formal strategy in place to manage disruption, led by a CIO and actively supported by the CEO. The pressure then falls on the CIO to enable their organization to disrupt itself using technology – an approach commonly referred to as “digital transformation.”
1. Decision Making Driven by Technology-linked Activities
Imagine that Google releases Google Glass for consumers. In this scenario, some might rush to purchase the smart glasses without adequate research and consideration. By simply responding to the shine and novelty of new technology, one might not be privy to a whole host of challenges before it’s too late. These challenges might make a snap decision not worth the investment.
In the same way, businesses rushing to implement a new marketing technology stack just because their competitors are using the same does not make them “digital.” These businesses are missing the point. Many organizations think that technology is the panacea that solves all business problems. When technology is seen as a hammer, suddenly everything starts to look like a nail. But technology on its own cannot solve problems.
2. Kicking Off Transformation Projects before Understanding Desired Business Outcomes
When businesses adopt a short-term view and plunge headfirst into unknown territory (or in other words, they strike while the FOMO is hot), they may soon find themselves in sticky situations – huge budgets might be spent without generating any real value, and they may find themselves too deep in to pull themselves out. In this instance, “digital” threatens to derail, rather than transform businesses.
Before starting on a digital transformation project, some questions companies should first ask themselves include:
· What customer experience are we seeking?
· What products and channels do we potentially want to be in?
· What financial metric are we trying to drive?
Technology that works for other organizations might not work for others. Introspective moments like this can help prevent organizations from making snap decisions.
3. Underestimating the Amount of Cultural Change That’s Required […]