Most of the companies claiming to be focused on Digital Transformations and it is their purpose to progress. The transformations are becoming so important for organizations due to the consumer expectations, technology changes and market competition. In a study conducted by Harvard Business Review team on S&P 500 and Global 500 firms, suggests that these organizations are becoming market leaders by successful transformations through new offerings and business models.
What the study reveals is that the companies were focusing on their core products initially have transformed into one or more successful market leaders in different products or features. They have been able to achieve the top ranking in the market by following common qualities and strategies – what they learned in one place, apply and enhance everywhere else.
Let us look at Amazon for example. An initial book selling company turned into online retailer has become market leader in Cloud Services. And for Amazon, the 10% of its revenue is coming from Cloud Services is a complete transformation. In the last 10 years, Amazon not only focused on retaining and increasing their core business (online retail), they also focused transforming their organization perspective to bring new progress in other place.
Innosight Managing Partner – Scott D Anthony explains what dual transformation means and how companies like Amazon, Apple, DaVita, Microsoft and others are driving disruptive dual transformations.
Out of evaluating 57 companies that made significant progress, the team has focused on 18 companies with three focused metrics – New growth, Core Re-positioning and Financial Performance. With a panel of judges like Chris Chadwick (former CEO, Boeing Defense), Clay Christensen (Professor, HBS and co-founder Innosight), Scott Cook (Founder & Chairman, Intuit), and the list goes on – they found these 18 companies phenomenally changed themselves by introducing transformations on their services, products and financials.
You can find more details about Dual Transformation and the study here.
While organizations may not want to take risk on leaving their existing grip, they are expected to apply innovations and transformations for obvious reasons. Dual transformation as suggested may help organizations to apply lessons learned and strategies from one place to other and help them to succeed.