In a fast-evolving digital economy, enterprise platforms may hold the solution for companies looking to keep pace.
In this fast-evolving, digital economy, companies are faced with an urgent decision: adapt, or become redundant. Yet sometimes, despite an organisation’s best efforts to keep pace with the market, it’s strategies are regarded as irrelevant for the market in which they compete. We define this as strategic drift – a phenomenon that results in a significant loss of segmentation and bottom-line profitability.
The global pandemic has forced organisations to refocus and prioritise how they operate in today’s digital and modern economy. Bold moves have been executed by organisations to accelerate the implementation of their digital and platform-led business strategies, including the creation of digital capabilities, embracing modern concepts such as cloud, platforms, and the introduction of digital-twins. However, digital strategy cannot occur in a vacuum. It has to be informed by a deep knowledge of the customer journey and characterised by a fluid approach towards change and adoption management. If companies do not keep pace with customer needs, competitors, technology, regulations, and other constraints, they begin a dangerous course of strategic drift.
The diagram below shows an organisation’s strategic change in comparison to market change (environmental change). In Phase 2, market change accelerates while the organisation’s strategy is only changing incrementally. Left long enough, by Phase 4, the organisation is forced to “transform or die”.
There are four main reasons strategic drift occurs.
- Uncertainty in the business environment.
- Path dependency and lock-in to old strategies.
- Culture stagnation
- Powerful players committed to old strategies
Enterprise platforms – a viable solution
Companies need to avoid strategic drift at all costs. Often this means modernising, connecting and scaling operations at speed, while generating the supporting data required to make a strong business case for the change. Enterprise platforms are perfectly placed to assist organisations in avoiding strategic drift and innovate at pace. Here’s why:
- Modern experiential interaction points that facilitate good experiences.
- Core processing that allows for day-to-day management of business activities.
- Data and insight to generate valuable business intelligence.
Critical success factors for enterprise platform users
In Accenture’s experience, the critical success factors for successful selection, implementation and operation of enterprise platforms include:
- Strong partnerships with enterprise platform vendors
- Industry and functional knowledge
- Advanced technological applications
- Relevant pre-formed assets
Accenture has helped many clients modernise and avoid strategic drift through the targeted implementation of enterprise platforms. Get in touch with us to find out how you can maximise the impact of enterprise platforms in your business.