We've all been hearing about digital disruption for a few years now and of the speed of change that is currently occurring. But few businesses seem to have worked out how they need to respond.
Is the current business model viable in a digital world? Does the core business need to be urgently transformed or can it continue while new business streams are built?
These are a couple of the questions discussed by McKinsey Digital strategy leader Jay Scanlan in the attached interview...
The fundamental question about the magnitude of change that digital demands is constantly posed to me. I think it comes down to three different questions. The first is around whether the current business model is viable in the world of digital, or do I need to fundamentally change the nature of how I compete in the marketplace, either in terms of the costs of delivery to my consumers, the way in which I engage them, or around control points in which I operate? The second question on magnitude is around the organizational demand. Do I need to transform my core business-as-usual organization rapidly, or can I afford to build new businesses and the new capabilities required to compete and win over the next 10 to 15 years? The third question is around functional models.