The strategic planning process has been replaced by a continuous innovation process involving people inside and outside the company.
Multiple, diverging long-term scenarios are defined as potential futures. The strategic roadmap is replaced by a strategic compass that indicates whether the company is headed toward one or more of the envisioned future states.
Innovation is not a function but a capability and leadership style deeply rooted in the culture of the company.
Evidence/insights-based decision-making has become the new way of working. Many decisions are made by AI or bots.
Customers opt-in on their data and have transparency on their personal data in use by the company.
Customer insights are used to personalize products and services and predict emerging customer behavior patterns. Data is also used to enrich products and services with information and make them social.
Digital is no longer seen as a function led by a top executive but as a way of doing business that transcends traditional functions. While basic business operations continue to be executed (partially automated through bots), strategic programs are defined around business themes requiring multidisciplinary leadership, which is partially provided through external partners and key customers.
Organizational intermediation through middle management is minimal; the organization is flat, and interpersonal relationships, trust, collaboration are key.
Hiring criteria are less driven by functional role descriptions and digital capabilities but by success stories in a digital ecosystem. Talent is attracted by the company’s digital (social and reputational) equity.
Processes are largely standardized across the entire value chain in an industry or ecosystem and provided by business process as a service (BPaaS) providers. Internal non-standard processes are largely automated through bots.
Next-generation IT is in place; some principles include the “Uberization” of enterprise IT, with mostly federated IT architecture layers, and first preference given to construction of loosely-coupled modular apps (microservices).6
Business cloud capabilities are highly verticalized, scalable and self-service-based, with autonomous management to address volume and velocity of unstructured data.
Customer autonomy is enabled, with customers becoming part of companies’ value chains and ecosystems. Customers are invited to share data, experiences and knowledge but remain in control of what they share, with whom, and for what purpose.
Customer touchpoints are highly personalized across all channels, creating valuable, emotional and meaningful experiences for each individual customer.
Companies build reputational equity through the quality of customer interactions.
Managing customer reputational equity is the company’s core capability, extending well beyond the classical marketing function.