Align – Pivot – Accelerate: Developing a Technology-Enabled Business Modernization Strategy
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Align – Pivot – Accelerate
As technological advancements continue to accelerate, businesses face significant challenges in keeping pace with these rapid changes. The swift evolution of technology disrupts traditional methods of delivering goods and services, demanding new and innovative approaches. However, many organizations lack an effective strategy to navigate this evolving landscape, leading to potential unpreparedness and operational inefficiencies.
As one CEO described it: “I have a clear vision for the next 12 to 18 months and where the business is going. But given the rate of change, particularly with AI, it’s hard to see five or more years into the future.” In this case, they were trying to identify a strategy to embrace the change and create a competitive advantage over slower moving competitors.
Without a forward-looking modernization strategy, businesses risk losing their competitive edge. The absence of a cohesive plan to integrate new technologies and adapt to the future can result in missed opportunities, inefficient resource allocation, and ultimately jeopardize the very existence of the business. It is crucial for organizations to proactively address these challenges to ensure resilience, agility, and sustained success in a technology-driven environment.
Like the rate of adoption of the Internet that reshaped the winners and losers at the turn of the century, organizations once again face a decision on embracing artificial technology to enable their businesses for the future. Those early decisions, the ability to manage the corresponding risks, along with wise financial investment will inevitably shape a new set of winners and losers over the next decade. This document outlines a disciplined approach to developing a technology-enabled business modernization strategy built on three phases: Align, Pivot, and Accelerate. This strategic approach more effectively identifies places to compete, shapes budget priorities, and balances risk versus innovation and experimentation.
Align
The first phase, “Align,” involves a thorough evaluation of the existing technological landscape to determine its relevance and importance for future operations. This phase focuses on identifying and halting unnecessary programs, reallocating resources, and training or adjusting staff to meet new technological requirements. By aligning current capabilities with future needs, businesses can create a solid foundation for sustained growth.
Evaluate Existing Technology
Conduct a detailed assessment of all current technologies and their relevance to future business goals. Identify technologies that are critical for future operations and those that no longer meet organizational needs. This evaluation will help in making informed decisions about technology investments and retirements.
Halt Unnecessary Programs
Terminate programs and projects that do not align with the strategic vision or contribute to future operational requirements. Redirect resources and funding from these halted programs to more critical areas, ensuring efficient allocation of organizational assets and funds.
Train and Adjust Staff
Invest in training programs to upskill and reskill staff members, preparing them for new roles and responsibilities. Align staffing to support new technology implementations and operational requirements. This ensures that the workforce is capable and ready to embrace the changes brought about by modernization efforts when you start to pivot.
Manage Risk
Some challenges and risks associated with alignment towards a future state:
- The business demands don’t stop as the business aligns to the future. The competition for resources, as well as attention, increases as resources are prioritized toward modernization, and risks turbulence in the current delivery of goods and services. Given the changing environment, businesses have no choice but to do both – remain competitive and responsive to current demands while balancing time and energy towards the future. The goal during the alignment phase is to identify critical versus less important functions to effectively assume risk prior to pivoting.
- Capability risk increases as the business transitions from legacy systems to introduce new, more advanced ones in a relatively short period of time. This alignment will likely stress existing processes and strain the enterprise, which will have to support both new requirements and existing ones at the same time. Much like Operation Agility, the goal is the identification of the critical capabilities needed today, and assume risk by not supporting functions no longer needed or not important to the future.
- Infrastructure risk increases if the business does not modernize facilities and equipment along with the pace of emerging technologies. AI will provide advanced capabilities, but still relies on networks, databases, and servers to function. This can result in unplanned infrastructure requirements, buying more capable equipment than what is required today to enhance the future and change the requirements and procurement process.
- Budget risk increases if funding decisions are delayed, re-aligned, or re-prioritized quarter to quarter without commitment to the future. Trade-offs between near-term demands, and long-term investments risk, remain until technologies are available to achieve a return on investment.
Pivot
The second phase, “Pivot,” addresses the critical shortfalls by refining and improving ongoing efforts. This phase aims to enhance current initiatives that are essential for meeting key business demands. By fixing these existing efforts, businesses can ensure that they are strategically positioned to overcome immediate challenges and capitalize on emerging opportunities.
This is the phase where the traditional approaches are re-invented, whether that is staff, budget, and/or bureaucratic processes. All are challenged with an eye towards the future rather than how it was accomplished in the past. The organization must remember why controls and boundaries were put in place, and if they are additive or restrictive to the future.
The pivot doesn’t come without risks. Several were discussed previously during the alignment phase. As one leader heavily immersed in an organizational pivot described it: “This sort of feels a bit like we are running with scissors every day! We no longer want to go back to the old way of business, but we are still trying to see our future selves.”
Fix Critical Operational Shortfalls
Identify and rectify deficiencies in current operations that hinder the achievement of business objectives. Prioritize efforts that address the most pressing operational shortfalls, ensuring that core functions are healthy and efficient.
Adopt an Agile Acquisition Strategy
Shift towards a more agile acquisition strategy that allows for rapid experimentation and adaptation. This includes adopting innovative technologies, and experimenting on their effectiveness when quickly integrated into business operations. Establish a new process for experimenting with various technologies, enabling the organization to learn, adapt, and innovate continuously.
Accelerate
The final phase, “Accelerate,” takes advantage of new business processes, acquisition, and requirements methodology that incorporates experimentation, staff development, and budgeting to go faster. This phase is the reward of the hard work invested during the two earlier phases and designed to foster a culture of continuous improvement and innovation. Both serve as the fuel for rapid adaptation of technology. By accelerating the adoption of innovative solutions, businesses can not only maintain a competitive edge but win and drive long-term success as an industry leader.
Experimentation and Learning
Create a culture of experimentation where new ideas and technologies are tested and evaluated regularly. Establish innovation labs or centers of excellence dedicated to exploring emerging technologies and their potential applications. Encourage a mindset of continuous improvement and learning throughout the organization.
Staff Development
Further invest in staff development through ongoing training and professional development programs. Encourage cross-functional collaboration and knowledge sharing to foster a culture of innovation and adaptability. Provide opportunities for employees to engage in innovation projects and contribute to the modernization efforts.
Budgeting for Innovation
Allocate a dedicated budget for innovation and modernization initiatives. Ensure that financial resources are available to support experimentation, technology acquisitions, and staff development. Regularly review and adjust the budget to align with evolving business needs and priorities.
Conclusion
In conclusion, this technology-enabled business modernization strategy provides a structured approach for navigating the complexities of the emerging business environment. By systematically aligning, pivoting, and accelerating their operations by embracing emerging technologies, companies can enhance their agility, foster innovation, and ensure they are fully equipped to meet the demands of a rapidly changing future.
-Brad Hilton (Consultant)
