Want a successful digital company? Then McKinsey‘s Kate Smaje has advice on how you need to work. Find out the secrets of going digital and what you need to think about:
Needless to say you have to get the basics right such as having a product/service that the market wants, timing and so forth. Apart from that, according to Kate Smaje, it’s a bit like playing tennis “companies that are doing well digitally aim where the ball should be. They focus on where the ball is going and what disruptions could hit and challenge it.
Think long term
Short term focus doesn’t work, you need to focus on what will happen years from now.
If you already have a company, ask yourself if your current business model will work in the future. If not, you need to create a new and very different one. And contemplate if you are innovative and big enough when you convert how you operate.
Tough decisions the name of the game
You need to be willing and brave enough to take tough decisions in several ways. Have the guts to face what you need to stop doing now. An example Kate Smaje mentions is a company that knew they were spending too much money on apps and decided to use only 2-3 of them and focus investment on just those few.
Creative destruction policy
Speed is also of essence once the first core decisions have been taken. A great idea that was implemented but didn’t work out as well as planned needs to be abolished. Successful digital companies have a creative destruction policy and when something fails they simply move on.
A company that holds on to such ideas divert management attention and resources away from moving on to the next step. The next strategy may only be 20% different but 20 times better.
Are you interested in going digital? If so, have you started yet? Are you developing a new idea that is going to start up as a digital company? Or, do you already have a business that you would like to turn into a digital one? Do you have the guts and long term thinking Kate Smaje says the successful ones have? Are you brave enough to let go of the past? Even ideas that have worked for your company for decades? What do you hope to achieve with a digital company?
Video: McKinsey & Co.