Here are some of the key principles from Geoff Parker:

1. Organizations that adopt the platform model are those types of companies scale a lot faster. Traditional firms with relatively stable supply-chain do not pivot as quickly as a platform company could. When they have their supply or demand side disrupted, it is more difficult to navigate where to start addressing the problems. Platforms enable working with a broader set of ecosystem partners on both the supply and demand side. The digital platform provides a better overview of solution pathways.

“The important idea is that a lot of the value add starts to take place outside the four walls of the platform sponsor firm, and it’s really being executed by an ecosystem partner in a much more kind of decentralized way.” – Geoff Parker

2. There are numerous reasons for the high failure rate of digital transformation and platformization of companies. The metrics typically used to evaluate digital transformation initiatives in non-platform businesses are derived from standard linear models and practices that historically do not have a high success rate. Before these initiatives reach the scale or growth they need to succeed, the traditional metrics and initiatives shut down. It is difficult for these initiatives to succeed within big companies because “anti-bodies” exist that stamp out digital transformation initiatives. Communicating the importance of this transformation to the organization helps align initiatives.

“It’s a big management challenge for leadership to explain organization-wide why this makes sense-why cannibalizing our a revenue stream is within everyone’s best interest.” – Geoff Parker

3. The inverted firm is achieved by shifting the production from inside the company to its ecosystem partners. Network effects cannot occur internally and within standalone companies, but it becomes easier if companies look within their business frame in the ecosystem. If companies start organizing towards shared value, then the deep-rooted system could be addressed while benefiting multiple players. An open system allows for more opportunities and orchestration to innovate and solve problems.

“In order to do the inverted firm model, there are a lot of assumptions. And a lot of that is going to be this end-to-end digital kind of visibility. That assumes a common data model that assumes we have sort of worked horizontally across the enterprise, and then we’re able to plug in at different points. A lot of times it just doesn’t work that way.” – Geoff Parker

There is a lot to gain from Platform Strategies:

• Platforms allow for accelerated response: Platforms can detect new consumer patterns and immediately sync to automate, inform, and dictate the supply and demand shifts. The responsiveness of platforms allows businesses to innovate and adapt quickly and with ease.
• Investing in digitalization is investing in visibility: Complete visibility from end to end allows the firms to connect with different players through intersection points in varying application services and interfaces. Network effects take place accordingly. As the number of users increases, the value of the overall system to the individual users also increases.
• Understand the benefits of inverted firms: Companies must look across all operations to find opportunities for other players to build from and to layer digital value. The ecosystem partners consequently scale, execute, and develop the added value that provides facile advantages to your company

Conclusion

Companies that leverage platform thinking and ecosystem partners are more resilient and adaptable in this economy because they are used in scalable business models. It is not that the Porter’s 5 forces model is incorrect, it is just incomplete. Strategy today is not just about finding out where to play and how to win. Making an impact with agility and leveraging the shared interests of your ecosystem bolsters dominating the field. 

Watch the full event here:

• 7:58 – Communicating Digital Transformation to your company 
• 10:10 – Willingness of manufacturing companies to rapidly experiment and change their business models 
• 12:22 – The Inverted Firm 
• 15:06 – Food truck platform example 
• 17:19 – Traditional vs Platform Strategy 
• 18:39 – Network effects 
• 25:35 – Digital visibility 
• 27:41 – Enabling infrastructure 
• 33:55 – Copycats in network effects 
• 38:36 – Advantages of omni-channels 
• 42:16 – First step for inverted firms 

This segment was part of The Interaction Field Series of our LinkedIn Live Events. Please connect with us on our LinkedIn page to stay updated with our upcoming conversations.

The post The Inverted Firm with Geoff Parker: Platform Is The New Norm appeared first on Vivaldi.

Here are some of the key principles from Rita McGrath:

1. Directing your attention to the supply chain helps you pivot your business. Rita explains how crucial it is to understand the difference between the two supply chains that run parallel with each other within companies. It is not only the product that is produced that could host the area of innovation, but it can also stem from one of the multiple supply chains down their main product’s pipelines.

If a company labels itself as a “grocery business” or a “restaurant business,” it limits its room to innovate. Framing your business in the interaction field opens companies to many opportunities when it positions itself within the network of the ecosystem and not within the constraints of its specialized category.

“One of the most dysfunctional things the pandemic has revealed is how brittle and how non-resilient so many parts of our very financed and very efficiency-driven economy has become.” – Rita McGrath

2. Shared value creation is built on trust. Putting the customers in the center and building solutions around them promotes a synergic relationship. The brand’s reputation is measured by its ability to solve problems, facilitate engagement, create participation, and commitment in following through with actions.

The manifestation of trust becomes a source of competitive advantage. Listening and tuning into emotions of the communities built around the product becomes a treasure trove of demand signals for companies.

“If you think about platform businesses, so much of it has to do with trust. I have to trust that you’re not going to be trading in some way. I have to trust that you’re going to be an honest broker. A lot of it really is about human connection.” – Rita McGrath

3. The discovery-driven approach allows making early significant changes and avoiding blind big leaps towards innovation. It is a common assumption from spectators to expect innovation leaders to know what they are doing within their field, but in reality, there is no platform for predictable information to draw upon.

Instead of committing to the traditional process of laying out a grandiose plan, it is more efficacious to communicate an ambitious goal. Having multiple checkpoints allows leaders to see what works or doesn’t work, and eventually redirect and audit the process to reach the desired outcome.

“Most organizations with traditional processes encourage people to continue with anything that they started all the way through just naturally. It leads to a lot of confusion.” – Rita McGrath

Tipping points are innovation opportunities. Here are ways to approach them:

• Solve for the bigger problem, not just the product line growth or bottom line: Taking the perspective of the “bigger problem” we are attempting to solve is critical for businesses today. Asking more introspective questions about your customer’s problems and solution allies opens the doors for innovation. Companies also need to understand and take control of their business assets and investment portfolios.
• Don’t confuse confidence with competence: Humility in uncertainty goes a long way. The answers to the company’s most pressing problems reside in the organization’s edges and not at the top of the hierarchy. Leadership should see beyond themselves and respond more to the collective through empathy. Leadership will be able to mitigate biases by not allowing personal reactions to dictate the most optimal outcome.
• The right time to act upon inflection points: Inflection points happen when companies see the problems or signals bubbling up and simmering before it boils over. These events are irreversible and if not acted upon, it gives other companies an open invitation for dominance. Businesses must have a pulse on their current portfolio of projects and strategies before encountering the inevitable pivot points.

Conclusion

Even though events such as the pandemic cannot be predicted, leadership should allow themselves to take improbable scenarios into account. Determining inflection points helps companies call for innovation and build strategies for pivot and action points. The challenges may be daunting for leadership, but harnessing empathy towards both the customers and the employees will clear the path towards solutions.

Watch the full event here:

• 6:26 – The right time to think about Strategy, emphasis on storytelling, qualitative metrics vs. traditional methods 
• 8:36 – Platform businesses have a lot to do with trust and human connection 
• 10:24 – Explaining Inflection Points in the context of the pandemic 
• 14:21 – Knowing where to begin with inflection points and the steps to take and learning from innovation flops 
• 15:29 – Addressing inflection points: Declaring the purpose 
• 19:15 – Respecting the parent company 
• 29:27 – Looking into your supply chains to pivot your business after identifying inflection points 
• 30:57 – Framing your business in the interaction field 
• 32:35 – Discovery-driven approach 
• 37:30 – Leadership will evolve in the post-pandemic world 
• 42:24 – Solving complex problems rather than the product 
• 44:28 – Controlling your portfolio of investments 

This segment was part of The Interaction Field Series of our LinkedIn Live Events. Please connect with us on our LinkedIn page to stay updated with our upcoming conversations.

The post Inflection Points with Rita McGrath: Your Business Is Not Destined to Fail appeared first on Vivaldi.

To understand how behavior today changes in the future, you have to reimagine how you create value in the lives of consumers down the road. New value can only be created by changing the organization’s culture, strategy, and operations. Further, organizations must scale themselves to the speed of their changing environments.

Organizations looking to create disruption must create different expectations for their customers. Take taxi companies, for example. In the face of Uber, these companies must create a different customer expectation and fundamentally change to create value for their customers. Disruption must change how consumers receive value.

Organizations need to use disruption to not only create a brand, but also a brand promise. They need to promise their consumers added value in exchange for their expense, as Uber promises their customers convenience in exchange for their data. This brand promise will allow you to create value as you approach disruption.

In disruption, most people look to their competitors, but this is not how you win. Instead, you need to understand where it is that consumers’ money is going. That is how you win.

The post Ignore the Competition: How to Win with a Disruptive Business Model appeared first on Vivaldi.

So how can you make sure those massive efforts won’t be in vain? Here are 5 must-do strategies to get your transformation to fully come alive in the long run.

1. Develop a Powerful Change Story

Powerful, lasting transformations don’t happen overnight. Now take the time to celebrate, promote, and further encourage the journey with an engaging brand narrative, giving both employees and customers an insight into the strategy behind those big changes. With a compelling, thoughtful, and thoroughly crafted story, you can align your partners and audience on those shared values and new ways of working together – especially with an inspiring account that ignites a sense of purpose.

2. Fast-track the Cultural Shift

To translate these organizational changes from aspirations to practical, hands-on application, work to incorporate the new mindset into actual daily behaviors and actions. This means identifying and fostering cultural shifts on the team level, championing the individual embrace of new practices and behaviors. And to help break the muscle memory of the now-bygone company era, encourage the visible, consistent endorsement from your executives for the new attitudes and conduct until those habits are fully-formed.

3. Build a Unified Brand Experience, Inside and Out

Once the transformation is in play, it’s even more crucial to have a clear point of view about what sets your brand apart from the competition. Now’s the time to construct a new visual and verbal identity that’s robust and rigorous, fully demonstrating what the company stands for as illustrated in the change story above. But don’t be hasty – after all, that’s the vision and brand that will be implemented across all customer communications. So be diligent when applying that same business strategy lens to every touchpoint – consistency is key in making these changes last beyond the initial relaunch.

4. Balance the Big Bang with the Long View

On that note, keep the changes coming by cascading them down the line, beginning at the very top. By creating and monitoring pilot programs for mission-critical projects, you can create quick wins and instill best practices from the very start. But that can only happen by equipping your teams with the right tools and training, further building those capabilities that can deliver on your long-term vision. Still, that alone just gets the ball rolling – throughout the entire process, it’s imperative to measure and share these new successes, championing those repeatable model behaviors and efforts on an ongoing basis.

5. Leverage Your Brand to Harness Top Talent

Even after reviewing an overhaul, it’s crucial to keep building towards tomorrow. Now’s the time to take advantage of your transformation to update a brand-led Employee Value Proposition, sowing seeds for the future harvest of your most valuable asset: people. By highlighting your points of difference against your competitors, you’ll be motivating both current and prospective employees in a way that’s effectively aligned with the new company vision. At the same time, implementing an employee engagement program not only inspires, but continues to drive those behavior changes outlined above, instilling real zeal and passion throughout the organization.

As you can see, when it comes to creating lasting change, there’s always more work to be done. And even each of these five strategies need ample time, passion, and commitment to succeed. But that’s exactly what will help keep you and your company ahead of the competition – today and tomorrow.

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