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The digital world has pushed old curves off the whiteboard as new trajectories arise.
Even tedious jobs like cleaning out archives can sometimes lead to great insights. Sifting through my old files recently, I was pleasantly surprised to find a treasure trove of old memories and forgotten facts. Amongst these papers were notebooks from my engineering studies; I realised that I no longer remembered the math formulas I had so diligently noted. The everyday pressures of business have blurred these lines.
There are, however, some basic concepts that have stood the test of time. Most are simple intuitive relationships such as extrapolated trend lines, the normal distribution curve and scale effects that taper as volume increases.
For most of us, these stick in our heads and have been useful in an analogue world where goods were scarce and the cost of transactions significant. As business becomes digital, however, other rules and relationships apply. If the old curves and concepts are rooted too deeply, we run the risk of taking the wrong decisions based on our default ideas.
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When the term digital transformation was first bandied about by consultants and business publications, its implications were more about keeping up and catching up than true transformation. Additionally, at first it was only applied to large, traditional organizations struggling, or experimenting, in an increasingly digital economy. But true digital transformation requires so much more. As evidenced by the recent Amazon acquisition of Whole Foods, we’re living in a new world.