The great digital transformation is underway. Research in the Harvard Business Review found that almost 90% of large companies globally have undertaken some level of digital transformation. These shifts can help reduce design cycles, improve collaboration, streamline internal workflows and better meet customer expectations. All of this translates to results: In most cases, companies that harness the power of digital transformation can successfully beat out those slower to adopt digital tech.
Why are companies doing this? Strategically implementing digital technologies gets results. In that same HBR study, researchers found that firms leading in digital transformations had over 65% greater shareholder returns compared to those that didn’t prioritize the shift. These leaders also had greater customer growth and saved more on operating costs.
However, not everyone has fully benefited from the digital transformation value-add. The median company has only captured about 30% of revenue growth and just a quarter of cost savings from embedding digital technologies across operations.
Why do so many companies fall behind when digitally transforming? The level of change management required to successfully implement such a transition is difficult and complex. Existing processes and solutions must be revised or replaced, the overarching company tech stack must be examined to ensure that new technologies can assimilate, and every business requires a tailored approach. We’ve supported countless companies, large and small, on their digital transformation journeys, and while we’ve learned there is no silver bullet, we have found adopting an open ecosystem approach can lead to better outcomes.
Open Vs. Closed Ecosystems
Breaking down the differences between a digital transformation using an open ecosystem as compared to a closed one can quickly turn into a technical discussion. Simply put, open ecosystems allow data and information to flow freely between the technologies used by different teams or departments, creating what’s known as a digital thread. Think of it as a railroad. In an open ecosystem, technology platforms integrate with one another, like train tracks pieced together.
A closed ecosystem approach can introduce significant inefficiencies. We often see companies that have viable digital technologies for each discipline, but cascading information from one technology platform to the next can be far from seamless. The tracks don’t connect, requiring unnecessary manual labor to move the train to the next track. That can leave your company stuck on a turntable while your competition chugs along uninterrupted.
Your digital transformation is only as good as your ability to share and use data across the enterprise.
Consider an automotive company with an R&D department designing a next-generation electric drivetrain. There are multiple teams within that department, each using different technology platforms—some created in-house, others purchased from vendors. While each team is familiar with the technology they have, none of the platforms integrate with each other, forcing the department to use manual processes—such as reformatting incompatible files or sharing progress reports via emails—as the project progresses across teams. Those seemingly small inconveniences cost time and add up quickly, especially with the complexity of today’s technology. Minor errors or changing requirements can send engineers back to the drawing board, multiplying the manual workload.
Now, consider a competitor working on similar technology, except that this company prioritized an open ecosystem approach. The teams can easily share information back and forth because they’ve created a digital thread. Not only has this approach eliminated most of the manual processes that are slowing down their competition, but it also allows them to respond with more agility to project changes, leading to faster time-to-market and often superior product quality.
Benefits Of An Open Ecosystem
Open ecosystems streamline the flow of information, supporting increased collaboration among disparate teams and suppliers. They create value in just about every industry—even national security. Recent digital engineering requirements issued by the U.S. Department of Defense demand the adoption of digital platforms and the connection of data and tools across workstreams and teams. Organizations that meet these requirements will do so much more effectively via an open ecosystem.
While the benefits that you could accrue through an open ecosystem approach will depend on the context of your company, I’ll call out three that I’ve seen across industries and sectors:
Increased Agility
Industries shift. Trends fluctuate. Technologies advance. Companies must respond to these changes quickly while maintaining product quality and reducing design cycle times. Digital platforms that speak the same language create more windows for automation, making it easier for updates to be shared across teams. This enables your workforce to respond to changing demands faster.
Builds On Legacy Processes That Work Well
An open ecosystem should provide the flexibility to plug into existing solutions that work well, establishing connections to other digital solutions. Be wary when acquiring technology platforms from vendors. Make sure they’ll work with you to build bridges between existing technologies—homegrown or from other software vendors—instead of attempting to build moats around their technology.
Maximized Workforce Output
Open ecosystems also enable organizations to adapt workflows in a way that keeps their human expertise fully engaged while making the most of new technologies. The goal is to empower your workforce with interoperable technologies that can minimize redundancies and tedious tasks to allow for the application of human intuition where it’s needed most.
Final Thoughts
As more and more companies embrace digital transformation, how will your company stand out? Prioritizing an open ecosystem that facilitates collaboration and enhances productivity can be the difference between keeping up and setting the pace.
Forbes
In the context of the Industrial Revolution, applying technology to operating mechanisms in each organization is extremely necessary, and is also an inevitable trend to minimize workload while still ensuring efficiency and enhance its competitive position in the market. Furthermore, applying management software into a business will also help build an organization with a clear system, promoting consistency, transparency and accuracy. Tasken eOffice, researched and built by Opus Solution – a business consultant in Vietnam – is an internal work management system as well as the management of automated, online, user-friendly approval processes, allowing businesses to operate more effectively on the path of digital transformation.
