Today a lot of companies are focusing on digital transformation. Companies like to get the most out of digitalization, but same time not maybe focusing enough on the current business model optimized for digitalization.
When a company which business model is not ready for digitalization is investing for digitalization, the result could be that owners & management do not see real business benefits out from investment. It could be that customers are not ready to pay extra for some digital services or it’s not influencing the expected way to own business.
Before companies should invest heavily in digitalization, they should analyze their readiness for digitalization. It could be that company should first go back to their strategy and see how digitalization could help reach this strategy or could digitalization give some new elements for business if they update strategy.
After analysis, the next step could be focusing first on business transformation, creating readiness for digitalization. Digitalization needs to bring new business, revenue, and profit to the company. To be able to reach all three, the company business model needs to be suitable for digitalization.
So the message is that it is better to first make core business ready for the future and then look in more detail how digitalization could bring something new. This is more business transformation than anything else first.