“The source of your success could be the source of your downfall.”
That was a key message for CIOs, CDOs and other digital leaders at a recent Forbes and TCS executive event in New York City.
Peter High, digital transformation strategist and Forbes contributor who led the session, used that quote to underscore his point: For modern enterprises to evolve, grow and innovate in these data-intensive times, they must engage in digital transformations that are cloud-first and based on technologies that can simplify complexity.
It was a message, in other words, that resonates with TCS’ own Business 4.0 philosophy of digital transformation.
Mr. High, who offered a series of case-studies to illustrate his points, attributed the “source of your downfall” quote to Rob Carter, the CIO of FedEx.
A few years ago, Mr. Carter recognized that FedEx in the decades since its founding in 1971, through many generations of IT, had continued to leverage the key insight of FedEx founder Fred Smith – namely, that the information about a delivery package is more important than the package itself. By approaching the logistics of transportation and delivery as one big data-processing challenge, FedEx had become a global colossus.
But rather than be satisfied with FedEx’s digital dominance, FedEx’s CIO adopted an attitude of creative paranoia. Hence his transformative quote: “The source of your success could be the source of your downfall.”
That realization, Mr. High told the audience, prompted Mr. Carter around 2015 to embark on a transformation to the cloud with an emphasis on simplification.
When asked about what it was that the FedEx CIO was most worried about, Mr. High explained, it was the layers of legacy IT that Mr. Carter feared. So many different processes were interconnected in unplanned fashion that if FedEx made any changes to one part of the data system, it could potentially trigger disruptions or other unintended consequences elsewhere in the network. Worse yet, the bird’s nest of interwoven complexity made it too difficult to pursue new data-driven business opportunities with agility.
The FedEx CIO realized that the only way for the company to continue building on its success was to use contemporary, cloud-based technology and techniques to achieve data simplification.
“Simplification becomes a key mantra for those of us as technology leaders” Mr. High said.
That message pulled through the other digital-transformation case studies Mr. High presented. He told, for example, of how the pizza chain Domino’s, encumbered by a fading brand and an inferior product that had become the butt of social media jokes, began to focus on the customer experience.
For one thing, Domino’s started making better pizza. But it also began adopting web and mobile apps that made it easy for consumers to place orders from a variety of platforms and have it delivered to wherever they might be – including using drop pins on GPS maps for deliveries to beaches or city parks. Today, nearly two-thirds of Domino’s revenues come from online sales, and the company has become one of this decade’s best-performing digital enterprises.
“It’s all about engaging your customers as they want to be engaged,” Mr. High said.
There were five key digital transformation insights that leaders walked away with:
Lesson #1: Meet your customers wherever they wish to be met.
Lesson #2: The digital natives are your competition.
Lesson #3: The technology that led to your success can be your downfall.
Lesson #4: That which gets measured gets done.
Lesson #5: Plans are for amateurs. Implementation of those plans is for experts.
These insights also resonate strongly with our latest research about what CIOs are thinking, planning, and doing to transform their businesses.
The TCS 2020 CIO Study asked more than a 1,000 CIOs from major enterprises across 11 industries in North America and Europe where they spend their time, how successful they’ve been, what technologies they’re keeping an eye on, which data matters most to them, and how they’re facing competitive threats. We’ll be releasing reports from this data and our interviews throughout the coming months, and here’s a first glimpse of our initial Key Findings Report.
Undeniably, across industries, this digital economy offers the perfect opportunity for technology leaders to make the shift to strategic business advisers, and in the process, help their enterprise drive purposeful innovation, outstanding performance and a culture of inclusion and empowerment.
About the author(s)
As Vice President & Global Head of Enterprise Application Services, Akhilesh ensures TCS’ global customers achieve rapid value from their business applications investments. He oversees the strategy and growth of the organization’s global application portfolio—ranging from long-standing enterprise application vendors, such as SAP, Oracle and Salesforce, to best of breed applications focused on specific business needs and/or industries.
Akhilesh and his team of business and technology consultants focus on designing and delivering technology solutions that harness the optimal digital capabilities to create new business models and to fuel opportunities with customer experience, finance and HR transformations and strategic IT initiatives.
With over 25 years of international and multi-faceted leadership experience, Akhilesh focuses on identifying strategic opportunities to truly build and grow businesses. Under his leadership, the practice has received a number of partner awards and leadership rankings from leading industry analysts.