ABeam DX Insight No.20 DX Engine - Three Elements of Company Transformability -

Insight

Oct 20, 2021

DX
Management Strategy/Reformation

As has been introduced in this Insight series, it is important in DX promotion to utilize digitalization to transform your business model and culture. The transformability of the company will be tested in such a period of transformation. It is important, therefore, to break down company transformability into practical concepts.

Conceivably, we can break down company transformability into three elements: the ability to find, the ability to execute, and the ability to adapt. Each of these three elements can be further broken down as shown in the figure below.

Figure Three Elements of Company Transformability

Company Transformability

1．Ability to Find

Ability to identify signs of environmental change
- In addition to reading changes in financial figures, clearly defining, through scenario analysis and the like, factors that should be considered and monitoring these factors in the course of business management
Ability to raise (direct) crises awareness
- Logically communicating detected environmental changes and the risks and negative impacts of these changes

2．Ability to Execute

Ability to quickly and flexibly review strategies
- Developing leadership and processes that enable rapid and flexible strategy reviews during planning periods in accordance with change
Ability to transform the decision-making team into a monolith
- Accumulating approaches and know-how to build a common consciousness with individual management members in order to commit to the execution of the strategy as a management team
Ability to scale and amplify
- Building mechanisms that enable scale-up of successful efforts, going beyond the quick win

3．Ability to Adapt

Ability as a culture to tolerate ambiguity and trial & error
- Fostering a culture that supports challenges in chaotic situations and situations where success is an uncertainty
Evaluation, talent development, transfer of authority
- Optimizing evaluation standards that emphasize behavior, systems for developing next-generation leaders, and review of responsibilities and authorities to support culture development

In order to respond to the rapid change of the business environment represented by digitalization, it is essential to understand the current state of your company's transformability. Many companies are already promoting initiatives to advance organizational capabilities as a company, but perhaps it is important to set company transformability as the ultimate goal and systematize and refine individual initiatives accordingly. When doing so, be sure to refer to the thematic viewpoints and methods introduced in these Insights.

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