To create the business of the future, organizations must go beyond technology to change the way they think about their businesses and how they do things. This involves looking at the five fundamental principles of any organization. By 4Sight Holdings’ Tertius Zitzke and Willie Ackerman.
The DNA of everything the business is generally made up of five fundamental building blocks: innovation, people, finances, operations and customers.
To create the company of the future, which we call Enterprise 5.0, it is necessary to work on each of these fundamentals.
However, before we look at what this entails, we need to remember the technology stack that supports or enables these fundamentals.
In Enterprise 5.0, we see how operational and information technologies converge to support and shape the business environment. The stack is supported by (and shared) three critical technologies – hybrid cloud, cybersecurity and data integration – providing a common backbone to enable the ongoing convergence in the market.
Everything is designed to allow the free flow of data in the business environment, where it can be stored securely and – this is the crux of everything – processed using artificial intelligence, machine learning and analysis. The resulting in-depth knowledge and foresight will guide decision-making in the DNA fundamentals discussed above.
At one level, becoming an Enterprise 5.0 organization means embarking on a deep journey of digital transformation over time. But looking beyond technology, you have to understand that Enterprise 5.0 means changing the fundamentals of how the organization thinks and operates, thereby impacting the behavior of people and the culture of the organization. The traditional business mindset is ultimately about the inside: how do we make our processes more efficient and more efficient for us?
In contrast, Enterprise 5.0 is using its new technology to take the customer or business partner perspective to answer the question: How does my customer want my organization to support them? What is the customer journey that we need to satisfy?
To understand how this happens, let’s consider the five components that make up the corporate DNA of a typical business, and how Enterprise 5.0 technologies enable a whole new way of thinking and doing things. The post-Covid-19 world is catalysing this process.
Innovation is generally seen as the backbone of differentiation, but in Enterprise 5.0 the focus is less on new products and services than on repackaging existing products or reimagining the go-to-market strategy.
For example, in retail, innovation is needed not to develop new products to sell but rather to develop a way to make it easier for customers to order and receive those products.
Likewise, one of the main drivers now is to activate existing processes for a distributed workforce. If you talk to CxOs, what they struggle with is how to make it easier for staff working from home with multiple systems. The solution here is to create a platform that provides a single interface for all systems and tools, not to create new process software.
For the Enterprise 5.0 company, innovation is customer-centric to create a whole new market space, often extending the “as-a-service” model beyond software to virtually everything.
People are the main asset of any business and are central concerns as the new way of working emerges. Two key questions concern CxOs: how to manage and measure the performance of a distributed workforce and how to ensure that the tools provided are adopted.
The technologies behind Enterprise 5.0 can be used to answer the first question: we are developing many sets of tools that not only cover the management part, but also measure who is doing what and what technology they are using.
The second question is more about change management and adoption, which are always the big issues for people. Our latest tools and technologies move the management and adoption of change from a “soft” operation to a “measurable” operation, ensuring a return on investment and also highlighting areas for improvement or training.
Finance is the heart of any business and one of the key elements of any sound decision-making process. CEOs want real-time information to make better decisions faster, whereas typical financial processes take place long after the fact, typically at the end of the month. We can already achieve near real time, but by integrating the multiplicity of information stacks and operational systems, and using machine learning and artificial intelligence, real time is achievable.
A second problem with finance is that companies are strapped for cash and are looking for flexible models for the technologies that underpin their move to Enterprise 5.0. Our philosophy is to move customers from traditional licensing models to the pay-as-you-go model, including eventually a migration to the cloud that will see all or much of the IT infrastructure move away from the balance of the capital. sheet on the operational one.
Operations, which are the key differentiator of the company. In the Enterprise 5.0 world, an important goal is to integrate operational systems with all other systems. A big motivation here is to automate and optimize processes in a smart way to add value or realize benefits. We use digital twins to help businesses visualize the end-to-end process and identify the constraints where it would make sense to digitize and automate – it’s never an end in itself. The digital twin covers the operational IT and technology landscapes, ensuring that we visualize the converged world.
The final and central part of the company’s DNA must be the customer. All organizations need to be able to reach out to their customers, both internal and external. Successful businesses retain existing customers and sell more to them. This requires a long-term approach and, above all, a willingness to engage in a “customer journey”. By this we mean the exercise of understanding your business from the customer’s point of view. As stated at the beginning of the article, the question is not whether a process is effective, but whether it provides a good experience for the customer and solves their challenge. We have developed software to help our own customers map their own customer journeys.
In conclusion: the Enterprise 5.0 organization is putting the building blocks in place not to do what it has always done more efficiently, but rather to enable new ways of doing and thinking about things that delight customers. , while increasing profits. It’s a fascinating story.
- Tertius Zitzke is CEO of 4Sight, while Willie Ackerman is its Director of Sales and Marketing
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Enterprise 5.0: Changing the DNA of your organization
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