Precision as a Competitive Advantage in Digital Transformation

Throughout history military leaders have suffered through the "fog of war," where they desperately sought answers to six key questions:

• Where are my enemies?
• Where are my friends?
• Where are my forces?
• Where are my materials and supplies?
• What capabilities are available now and at what location?
• What are the environmental conditions?

These “unknowns” impacted the strategies and tactics military leaders employed. Their time and energy as leaders were heavily focused on defending themselves against these unknowns.

Speed as a Competitive Advantage in Digital Transformation

The concept of speed as an advantage is not new. Over the course of 700 years, the Romans built and maintained a system of roads extending over 55,000 miles to enable speedy communications and the quick movement of troops across the vast expanse of the empire.

What’s different today is that digital technologies have warped our perception of time. As an example, a person might say they live five minutes from town, but that can have widely different meanings based on whether they were referring to walking or driving a car.  Digital technologies compress our perception of time and space while expanding our expectations of what can be accomplished in a given time. We expect to complete the equivalent of one hour of shopping in a supermarket in one minute online.  These changes significantly impact the way businesses must operate in a digital era to compete and remain relevant.

Culture as a Competitive Advantage in Digital Transformation

The human work of solving problems, facing challenges and overcoming obstacles tends to share a common goal: creating stable, secure and predictable environments. The tendency for most humans is that once we solve a challenge, we want to be done with it.  That propensity, however, does not fit with today’s reality of perpetual change. 

In the digital business world, organizations have no choice but to operate in an unclear, uncertain and continuously shifting environment that requires a new mindset and approach to formulating business strategies.  Digital winners recognize that change is part of the game, and that they need to develop ways to exploit continuous ambiguity.   In fact, in our surveys of high-tech professionals, when we asked how long they thought digital transformation initiatives would last, about one-third of the surveyed technology professionals answered “forever” – and as we all know, forever is a long, long time.

Digital Technologies and the Compression of Time and Distance

Professor Paul Virilio, a philosopher of speed, urbanist and cultural theorist, wrote at length about the impact of speed on society.  He wrote that speed compresses both time and distance. Where once it took a letter 6 months to get to the other side of the world, an email can now arrive in seconds.  Today's near real-time communications has changed how nations are governed, markets operate and commerce is conducted.  The distance and time involved in communications has been compressed into seconds.

Commanders of Roman armies could once estimate the day and time of battle based upon their soldiers ability to march 20 miles per day on purpose built stone roads.  Today, however, a ballistic missile can be launched and reach the other side of the earth in minutes.   As a result, nations and their military commanders must now prepare to make critical decisions in mere seconds rather than taking days, weeks or months to deliberate.  That's a big deal.  In the past, an army could retreat and give up distance for time.  In the example of the roman army, an opponent could retreat and separate themselves by 100 miles to give them the security of 5 days of time.  Today 100 miles means only a matter of seconds.  The distance and time of military conflicts today has been compressed to milliseconds.

Patterns, Platforms, Competitive Advantages and Automation

Any significant business process that can be documented and best practices identified - will be.  Any defined process that can be standardized - will be.  Standardized processes that can be codified and automated (through robotic software automation), will be - if the volume justifies it.  If the process is repeatable across many companies it will be offered as a shared service on a platform in a cloud.

If you agree with these technology maxims, then you are likely to agree that most existing business processes offer little competitive advantages in the long run, and the advantages of new innovations are fleeting so must be captured early.  They will eventually become part of a shared services platform followed and used by your competitors.  For example, 20 and 40 foot shipping containers offered a competitive advantage for shipping companies and ports that were early adopters, but only for a very short period of time.  After a quick few years the entire world standardized on them and the competitive advantage disappeared.