Creating new value - or simply keeping up?

Photo by Fancycrave on Unsplash

Demand for digital transformation is at an all time high - according to a survey of 600 leading execs for a DXC report: 2019: The year of digital decisions. It provides timely evidence that supports my mapping of the situation facing industry right now - referred to in detail here.

Referencing that article (The Job Of Digital Strategy Consulting): Companies are testing the water, feeling their way with agile here, lean there, new-tools-but-same-ways -of-working almost everywhere... There is no certain way of doing or being digital yet. Not by some distance. But we must expect that there will be movement in that direction.

What the increased demand/desire tells us is that digital transformation is headed toward ubiquity and with it standarisation and the need for interoperability. There's an increasing realisation that companies must build themselves a new future and this is at such scale that trying to do this with hand wrought nuts and bolts is too bespoke - too slow and too expensive.

What this also reminds us is that digital transformation is not the end product. It is a process of creating the nuts and bolts on which higher-order complexity - the novel stuff that creates greatest value - gets built.

When you have all the nuts and bolts, and power supplies and gears and pulleys and all those things you need to make stuff, it doesn't magically self-assemble. into things of value.

How you are able to use what you have brought together - the pile of 'what's' your grand 'why' of digital transformation may have provided you - that is where the magic happens.

The insight, the imagination, the ideation, the design, the rapid iteration, the testing and scaling - without these your digital investments are simply 'efficiency' spends. They won't even reduce your IT budgett. When we make stuff more efficiently we tend to use more of it (as Simon Wardley points out. Think how many more nuts and bolts got used as a result of standardising them.

What is needed is a way in which you can standardise and make repeatable the insight, the imagination, the ideation, the design, the rapid iteration, the testing and scaling. What is needed is a new way of working.

This is the 'How' of digital transformation and it is where the fight for market mastery gets won and lost.

In 2019 this is the most pressing challenge for creating new value vs simply keeping up.

12 years left to adapt or die

Disruptive technologies generally take 20 years to make their broad society-wide impact felt.
The first commercially available mobile phone network opened in Japan in 1979. 20 years later everyone and their mother had a mobile phone.

in 1900 London the horse was still king of the road. 20 years later the motor car had become ubiquitous.

Social networks - and the technologies of social media, have only really been with us in user friendly form since around 2003. I pick that since that was the year MySpace was founded. (Image courtesy PetruzzoPhoto)

Yes there were social technologies before MySpace - just as there were cars before 1900 and mobile phones before 1979. But in all three cases using them (be it social technologies, cars or huge cellphones) was relatively cumbersome and/or time consuming, complex and expensive. MySpace made the peer to peer connectivity of the internet something everyone could do. On a global scale. Easily.

And by 2008 it was pretty well on the way to making the concept of social networking ubiquitous. Facebook built on that. And today as the race for 1bn users advances at a high rate of knots, it's hard to avoid the impact of this user-friendly driver of self organisation - whether it be for customer complaints or armed insurrection.

The ease with which groups of purpose can organise in social networks is something that wasn't so easily enabled on forums and in newsgroups of emails. And not as many (and perhaps not enough) people understood or were driven to understand what they could do with the web - until the nice easy interface of the social network showed the way.

When new tools become truly ubiquitous then, and only then does their full impact on society become clear. In this case I'm suggesting the new tool wasn't simply the internet, it has been the refinement of social networks to the point at which they are delivering self-organising groups of purpose on a global scale.

The process of using social networks has educated a new and huge generation in the value of real-time synchronous communication which is the guts of the formation of communities of purpose.

The future is not digital - it is self organised. That is what social networks reveal.

Everywhere this process touches it disrupts. The media industry lays witness. Others will, of course, follow. Most dramatically throughout the Arab world currently, the disruption is to centralised control. Every where there is centralised control, every where there is mediation - so adhoc self-forming communities of purpose have the power to disrupt.

Given the standard 20-year life cycle of a technological revolution, and my assertion that 2003 is the year zero for this revolution, then we can expect the complete impact to have been wrought by 2023.

In two years time we will be half way through. Half way.

The old ways have 12 years to transform or die.

Related articles

• 5 Failed Social Networks Even Worse Than MySpace (huffingtonpost.com)
• MySpace for sale, News Corp has given up (downloadsquad.switched.com)

Ubiquity: Mash-ups for the masses

I love the way this pulls down technical barriers and opens up a world of useful mash-ups to those best placed to share the results (ie you and I).
It's Ubiquity.
Watch the video. Welcome to a more connected web. For everyone.


Ubiquity for Firefox from Aza Raskin on Vimeo.