Manage Your Company’s Digital Move

One of the odd things about enterprises these days is that they recognize the need to digitize, but they go about it in such a roughshod and disorganized way that it creates a lot of wasteful spending, wreaking havoc on their IT budget. With different departments usually implementing digitization on their own, resulting in islands of digitized departments for engineering, production and operations, R & D, knowledge work, and even customer interaction. In order to avoid these largely inefficient moves to being digital, companies usually take one of these approaches:


This approach is used by enterprises in order to make the move centralized upon one focal point, consolidating key assets such as people, data, infrastructure, skills and management processes. This is done by bringing all digitization investments together under one key executive.


This approach is done when the organization doesn’t want to disrupt the structure too much, instead adding mechanisms that will help increase coordination of the big digital investments, usually through engineering, operations, product owners and other enterprise groups. Aside from minimizing disruption, it also helps units work together in the delivery of enterprise goals.

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Separate Stacks

This approach aims to minimize the overhead that usually results from coordination of the stacks, as it instead leaves each of the digital islands alone to maximize local value. This approach is typically used by enterprises that rely on products or standalone businesses. The accountability for profit and loss is usually held locally.

Out of all the approaches above, it is said that majority prefer coordination, followed by separate stacks, while the least adopted approach is convergence. When choosing an approach for your company’s digital move, it is best to consider the key goals of each: convergence reduces cost and risk, coordination improves customer experience and asset utilization, while separate stacks boost innovation and customer responsiveness.


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