Have you ever stopped to think that the largest hosting company in the world, AirBnB, does not have a single physical asset in the form of rooms or buildings, but, in fact, it has a technology capable of making large international hotel chains, owners of huge towers of rooms and apartments, if they feel threatened?
The case of Uber is even more emblematic, because the power of its software is so great that even violent reactions and protests by taxi drivers can happen in various parts of the world.
Do you want to understand the digital transformation process of companies?
According to an article published in Harvard Business Review , start with the following in mind: you need to reallocate your assets and invest in new business models based on digital assets.
Find out more: Where to lean and what agents to use for digital transformation
The five steps of companies’ digital transformation process
The article describes a process of digital transformation in companies that the authors call PIVOT, an acronym in English that means:
- Pinpoint: Define with Precision
- Inventory: Inventory
- View: View
- Operate: Act
- Track: Track
Check below what to do in each of these steps of the digital transformation process in companies.
1- Define with precision
Carefully define your current set of assets and what business model they provide.
This is your starting point: understand your business model : do you sell B2B or B2C products? Provides services? Do you produce raw materials? Does it generate knowledge through research?
Define precisely what you do.
If you need to, take a look at this article: Learn all about business process modeling
2- Inventory of assets
What are your company’s assets? Start with what you’re used to dealing with, like factories, land and equipment. Then move on to intangible assets, such as the technical capacity and talent of the teams, the value of your brand, the reputation of your company and, especially, the networks of contacts between people and organizations.
The assets related to their relationship networks are the least noticeable and, in most cases, very poorly managed.
At this point in the process, it is in the search for valuable partnerships through networks of interested contacts that companies’ digital transformation efforts should be focused.
3- Visualize a new digital future
Imagine how you can create a digital network where your company and its partners can collaborate and create value together.
Most often look to suppliers and customers, but there are many other networking options that organizations can look to in order to promote the digital transformation of companies.
Distributors, investors, alumni (in the case of schools and universities). Find out how these networks can work together, using your assets in a coordinated way.
Be sure to take into account a very important point: which digital platform will provide this collaboration and joint value creation?
4- Take action: start an operation pilot
Be lean and make a small amount of capital available to start putting your idea of joint value creation into practice.
To speed up the process of digital transformation of companies, it is recommended to assign a specific team for this and a defined physical space as well.
This team has a great responsibility in the hands and needs freedom to act and think with creativity and agility, generating more innovation for the organization .
The important thing is to make sure that a collaborative platform is being created where everyone will have the desire to create value together, so it is essential to maintain direct and close contact with your network of interest.
5- Follow the evolution of the project
Monitoring means defining specific KPIs for the new business model, the result of the company’s digital transformation process.
Control panels usually present metrics such as number of interactions on the platform, number of active digital partners and the value created, among others.
Do not forget, of course, financial metrics, such as ROI , for example, and be sure to correct the directions, whenever this need is detected.
The digital transformation of companies can bring risks, but a much greater risk will be to let your competitors promote this transformation before your company does.