All the changes and shifts explored earlier are exposing organizations to strong and sometimes opposing forces. At a macro level, in order to gain breadth (reach, firm positioning and efficiency), the trend has traditionally been towards global strategy, recentralization and economies of scale. At a micro level, in order to gain depth (product differentiation, niche markets and effectiveness), the drive is towards fragmentation, specialization and personalization.
In the fast moving, connected digital world, the focus of business transformation will increasingly shift towards the front office and the task of enriching customer experience. Organizations need to engage with customers more intimately and individually than ever before through processes that exhibit real-time flexibility and a richness of integration that delivers truly end to end customer experiences. The seemingly opposing forces of “maximizing process efficiency” and “personalizing user experience” present a complex business challenge. Whilst most organizations and businesses do not need to fully master both forces simultaneously in order to succeed, they must understand how to make them work together rather than against each other. The value and potential
of enriching customer experience will only be fully realized when core business operations within increasingly disaggregated supply chains are aligned and optimized for both business-to-business AND business-to-consumer interactions.
As businesses strive to master this complexity, we foresee the fragmentation and outsourcing of business processes, which must then be properly orchestrated. The new digital world will see highly efficient back-office process elements triggered by real-time integration with flexible, personalized customer interaction solutions. The challenge of process complexity and opposing forces will be overcome by more and improved standardization of granular business processes and technology interfaces that enable seamless and dynamic construction of end to end capabilities, delivered by otherwise disparate entities – the best of both worlds!
For any organization, becoming truly digital requires a different mindset, increased flexibility, abandoning the obsession for the very short term. It requires a redefinition of corporate structures, bodies and roles to make innovation happen as a matter of course.