Value-driven digital transformation is the introduction of new technology in a value-driven way. Our vision of introducing new technology is that it must be driven by business modeling, must involve your value network, and must take an engineering approach.
When introducing new technology, rethink your business model.
New technology like blockchain, artificial intelligence or sensor technology requires revising your business model. New technology allows you to offer new products or services to your customers. Failure to recognize this may result in costly failures and underutilized technology.
When rethinking your business model, rethink your value network.
Today’s business is done in a complex web of partnerships, service providers, customers and regulators connected by information technology, modern media technology, and logistics companies. New technology requires you to change some of these partnerships because by definition it will require a provider for the new technology. In addition, the technology itself may fundamentally alter the nature of your value network.
When rethinking your business model, use an engineering approach
Value networks can be complex, and their redesign involves estimations of expenses, risks and revenue for all partners in the network. Much of the interactions among partners in the network my be automated, and this required coordination process design. To keep in control of this complexity and actually make a step forward in the digital transformation, you need a solid engineering approach to business modeling.
To sum up, digital transformation is made possible by technology, but requires value network redesign, risk assessment and coordination process design. his is the foundation of our value engineering approach to the digital transformation.