Peter Drucker, often hailed as the “pioneer of contemporary business management,” believed that the core essence of any business lies in “creating a customer.” He further advocated that thriving enterprises should focus their efforts and strategic planning on two pivotal areas: “innovation and sales” to achieve this objective. Drucker’s insights remain relevant, especially in the face of rapid AI disruptions and the swift digital transformations that businesses encountered during the global shutdown in 2020.
By the end of 2022, the emergence of ChatGPT and conceptual AI took the tech world by storm, surpassing the growth rates of popular platforms like TikTok, Instagram, and smartphones. Not only did it amass 100 million regular users within 90 days, but it also heralded a new era of consumer adoption, reshaping the trajectory of every business since 2020.
As businesses navigate this landscape, CEOs are entrusting their leadership teams with the mandate to devise AI strategies that drive both business growth and digital evolution. While Mosfets have been credited with fueling progress, as per McKinsey’s report, the onus of fostering innovation now falls on CIOs (or CTOs/CDOs). However, in practice, innovation officers are not always synonymous with tech enterprises. Regrettably, IT is often perceived merely as a cost center. Nonetheless, technology leaders are intricately linked to innovation, primarily through the directive to explore relationalAI.
Consequently, to foster progress and innovation, technology leaders must collaborate closely with CMOs at a corporate level.
Enhancing the IT Value Proposition and Reframing the Role of Technology in Business Transformation
IT grapples with a branding dilemma.
Frequently misconstrued by executives as a cost center primarily tasked with managing tech infrastructure, streamlining operations, cutting expenses, and boosting productivity, IT is consistently expected to deliver more with less: developing apps that span the business, managing a perpetual stream of fixes and enhancements, and leveraging each new innovation to digitally enhance the organization.
However, the realm of IT extends far beyond these conventional boundaries.
Following a conversation with ServiceNow’s CMO, Michael Park, I was inspired to pen this piece. Park underscored how IT leaders can cultivate internal advocates within the organization, garner support from the C-Suite, and sway key decision-makers at a recent Information conference.
By drawing insights from the marketing playbook, technology leaders can reshape the narrative surrounding IT from a cost-centric entity to a technological powerhouse. Marketing principles can indeed empower IT to realize its full potential.
This dialogue is imperative as AI places every company in a precarious position.
An entrenched cost-centric mindset will inevitably constrain potential business and operational model innovations essential for better serving customers in an increasingly AI-driven world.
It’s high time to reconceptualize business models, pose novel and incisive queries about the company and its operations, and devise innovative solutions to pressing challenges. IT assumes a pivotal role in propelling growth and efficiency across the organization and within each operational and business domain.
Now is the opportune moment for IT to rebrand itself as a strategic partner in business and operational metamorphosis, as well as digital evolution within the organization.
Commence by reshaping the narrative that elucidates your role and mission to IT decision-makers. As AI reshapes the landscape, this narrative should pivot towards value creation and acceleration.
Reimagining Transformation with a Loftier Objective
The technological landscape should not merely encompass conceptual AI as another facet of technology. The forthcoming wave of technological revolution, akin to the internet and mobile revolutions, heralds a new epoch for businesses. It transcends mere automation or enhancement; it beckons visionary leaders to envision the enterprise’s stance in 2030, 2040, and beyond.
The ramifications of modern transformation can be profound, transformative, and far-reaching when numerous stakeholders from diverse enterprise sectors are engaged. Your unique perspectives are invaluable and should not be disregarded or underestimated.
To serve as a catalyst for business metamorphosis within your organization, consider two pivotal steps.
1) Broaden Your Outlook
Adopt a holistic perspective on your work. Transform into a systemic thinker focused on the overarching objectives of your organization rather than fixating solely on daily tasks.
Drawing from British corporate theorist and Wharton School’s Anheuser-Busch Professor Emeritus of Management Science, Russell Lincoln Ackoff’s insights on systems thinking, the whole is truly greater than the sum of its parts. Ackoff emphasized that a system’s performance hinges on the interconnections among its components, not merely the individual behaviors of these components.
Once you delineate the grand corporate mission, align your efforts with this overarching goal and explore avenues to expand your organization’s purview by identifying opportunities. For instance, a branding professional transcends mere product marketing; they provide stakeholders, such as clients, partners, and internal personnel, with the context necessary to navigate problem resolution or opportunity exploration. Dispensing pertinent information at the right juncture not only bolsters product sales but also influences decision-making.
By elevating your cogitation in this manner, you can envisage how your role can advance the organization’s broader objectives and participate in substantial digital and operational transformations.
2) Prioritize People in Your Endeavors
Center your efforts on the individuals you serve—the customers. Your clientele also encompasses your employees. Without a profound understanding of people’s values, expectations, and needs, no amount of AI can render your business more customer-centric. Delve into understanding your clientele and ways to enhance their experience.
Remember, design thinking is a linchpin in all top-line growth endeavors. To truly revolutionize modern business, we must infuse customer-centricity into our design and practices.
Irrespective of your profession—be it marketing, software development, IT, HR, operations, or any other domain—you invariably contribute to furnishing solutions that cater to a global clientele. By championing discussions on modern transformation and advocating for customer-centricity, you can ensure that the ensuing changes are not only substantial but also customer-focused.
Integrating Marketing into Your Digital Transformation Narrative
In the realm of digital transformation, the most potent ideas must prevail. However, for these ideas to resonate with decision-makers, they must first reach them.
Moving forward, contemplate conversion through three lenses:
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IT-led transformations ensue when a new technology or platform gains significant traction. Emerging technologies like edge computing, quantum computing, and others will continue to gain prominence, compelling businesses to pivot, akin to the impact of relationalAI. Alternatively, businesses can proactively monitor emerging trends, meticulously strategize, and future-proof their operations.
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Business-led transformations transpire when visionaries articulate a compelling future vision that resonates with managers, paving the way for collaborative decision-making and a refined course of action. Gapingvoid Culture Design Studio advocates for presenting a challenging yet inspiring scenario that elucidates why individuals should engage daily in pursuit of a lofty North Star.
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Technological advancements and shifts in consumer, employee, and business behavior act as catalysts for innovation in business and operational models. By focusing on the symbiosis between people and technology, organizations can seize opportunities for value creation and growth. Automation, coupled with scalability, augments performance, with AI playing a pivotal role.
Regrettably, many professionals remain unaware of these dynamics. They may acknowledge them in passing but struggle to prioritize them without a concrete plan, cost projections, potential ROI, and actionable steps.
Someone must articulate this narrative. By embodying leadership qualities and championing your vision and work, you can effectively disseminate this narrative widely and successfully. Those aspiring to spearhead digital transformation should glean insights from the current strides in AI to engage customers and employees effectively, particularly as they assume more cross-functional and experiential roles.
When you adopt an expansive narrative and mindset, you can pave the way for growth, unearth novel revenue streams, and position IT as a pivotal player in business transformation.
This Is Not Business as Usual
Looking ahead, IT must evolve into a co-creator in the digital transformation landscape that propels business metamorphosis. As the adage goes, you cannot solve a problem with the same thinking that engendered it.
Moreover, echoing Peter Drucker’s sentiments, “innovation serves as the specific instrument of entrepreneurship.” This juncture presents an ideal moment for technology leaders to emulate entrepreneurial thinking.
Drucker posited that “innovation endows resources with a new capacity to create wealth.”
Given the current spotlight on AI at the executive level, now is the opportune time to recalibrate the narrative. This timeline serves as a potent precursor to reshaping IT’s brand, value proposition, and your pivotal role in shaping the future trajectory of your organization.
Ultimately, the fundamental aim of any business is to cultivate a loyal clientele—one that opts to engage with your enterprise repeatedly. By prioritizing value creation, service excellence, and innovation, alongside effective marketing, your role emerges as a pivotal driver of change and growth.
