Business Model Evolution Surpasses Focus on Technology
As quickly as the digital world is breaking down borders across industries, it’s as rapidly changing the conversations taking place in boardrooms.
Last year, digital transformation, particularly around technology adoption, was a dominant topic. But to position in the digital economy, compete against digital disruptors, and maintain customer loyalty regardless of consumer or the other B in B2B, business model transformation must be equally represented at the table…shifting how organizations fundamentally talk about their business strategy. And we’re finding they are.
Recently at CSG, we held a webcast- IoT: Simplifying the Path to Revenue. Central to the presentation was a discussion about IoT not just as a technology strategy, but as a multi-dimensional business model that will increasingly become more complex as the digital world continues to define itself and mature. (I will note, this isn’t just a topic of discussion for IoT. It holds true for many industries today.) And both technology and business models must work in sync with each other to capitalize…and survive…in our increasingly connected world of everything.
To help gauge where companies are in their thought process, we conducted live polling during the webcast. What we found was not only surprising, but exciting. In asking attendees (half of which were Director to C-level and representing a wide variety of industries from MNOs to government agencies to OTT to network infrastructure vendors and beyond) to identify the biggest issues they are facing with IoT projects. Finding the right business model that works garnered close to 40% of the votes. Whereas understanding all the different technologies was just 14%.
We also inquired that of the Four Pillars to IoT success we discussed (The Right Business Model, The Right Partners, The Right Technology and The Right Mind Set—i.e. customer centric experiences—again all relevant across sectors) what does their organization consider the biggest challenge when discussing IoT programs. Just shy of 50% of responses indicated The Right Business Model. The Right Technology was a far distant 5%.
As we have moved through our first quarter of this year here at CSG, we are finding the same shift in conversation with our clients. Technology is discussed as a portion of an enterprise-wide strategic approach to competing in the digital economy and creating sustainable monetization opportunities regardless of how the business may evolve. How will your business model change to embrace opportunities in the digital world?