One thing that has been taking up quite a bit of my attention lately is how, in the real world, an organisation can do the kind or big picture, strategic transformation that’s almost certainly needed whilst making progress on what might be termed everyday digitisation – the sort of thing that makes peoples lives easier but doesn’t dramatically change the core operating model of the organisation.
I’ve imperfectly defined three ways to attack digitisation before:
- Access – taking a paper or telephone based process and whacking it online with an e-form (quick to do, few benefits except a bit of convenience for web savvy users)
- Efficiency – taking that process and digitising it end to end, involving the replacement or integration with back office systems, removing unnecessary admin touch points an so on (takes longer, more difficult, but yields better results)
- Transformation – taking an entire service and rethinking it from the ground up, knowing what we know about networks and connectivity (really hard, but could ensure the relevance of that service for the next 20 years).
The problem is that transformation is where the real action is, but it is hard, so hard in fact that it’s difficult in my experience to get people to even talk about it. In the meantime, you’ve got folk shouting at you to increase self service or decrease unnecessary demand.
In a recent conversation with Catherine Howe I reminded myself about Ben Thompson’s great analysis of the Amazon purchase of the Whole Foods supermarket chain (Amazon is, I think, by far the most interesting company of our times). In it he describes the concept of Amazon being its own best customer. When building the AWS service for cloud based computing infrastructure, they had a huge customer ready and waiting to use it (and more importantly, test the hell out of it): the Amazon.com e-commerce site. Likewise, having its own in house supermarket would be a great way to build and test Amazon’s emerging logistics business.
This I think gives a hint towards the way an organisation (I’m thinking of my usual local government context, to be clear, although it could work in other sectors too) could start laying the foundations for genuine transformation whilst doing some of the quick wins stuff in efficiency, and maybe a bit of access if they really have to.
By having an idea of what the future big picture might look like, it’s possible to start building things in the here and now in such a way that it delivers the short term gain whilst creating the capabilities, the building blocks, for making the future happen too.
The danger is to drive yourself into a technical cul-de-sac delivering on the immediate requirements which leaves you hamstrung in your ability to execute on the much greater strategic win of genuine transformation when that opportunity arises.
As always the difficulty with this conversation is figuring out what that future looks like. It’s easy to write posts saying “digital isn’t about tech! It’s about changing your fundamental operating model!” but such posts rarely tell you what one of those operating models might be. I don’t necessarily have an answer to that myself (the consultant in me screams “it depends!” at this point) but I’ll post a few thoughts another time.
What I would say though is that the ‘be your own customer’ part of this does point to an organisation in the future being the provider, or perhaps steward, of technical capabilities that can be shared and re-used across a wider (perhaps local) system. However other assets could also play a part in this and it doesn’t need to be a technology focused discussion.