The pure and simple reason behind the tech revolution and innovation within the business world (and moreover in the Digital Transformation space) comes down to a few simple things. Who can do it better, faster, and stronger?
Several things give startups a competitive advantage over large, more established organizations. The following are some of the reasons why.
When it comes to deciding on what technology to pick up and what to let go of rapidly. Startups can do so in a much shorter period. The team or specific decision-makers within a startup are a smaller segment. The specific departments that have to employ technical change are few; maybe two or three.
However, within large Orgs, decision making takes time. Ideas need to pass through conferences, committees and cascade up sometimes to the board, which might require more than one forum to conclude on the best step to take.
Enterprise organizations will employ a digital transformation initiative to gain insight for improvement, both in technology and business processes. They will then engage this process to regain or maintain the competitive advantage they have built up over their lifetime.
Risk and Innovation
Taking risks for startups is more comfortable since their customer base is not yet large enough to inhibit risky decisions. Most startups are in an innovative stage where they are trying on new things and are looking for the best solution to give them a head start in the market.
For well-established companies, risk-taking in the digital economy is tough. The need for an established and experienced DX team is paramount. The research to find the best angle of implementing “risky” changes in such a way that customers and shareholders are not negatively affected.
Business agility is a technique that allows companies to remain technologically relevant in today’s society — affording them a position that enables them to stay flexible, regardless of the current market trends.
Startups get to enjoy business agility where else large companies have to ask a few critical questions before they decide on how to respond to changes. Without functional DX strategies, it would be hard for a large company to exercise agility and maintain relevance.
Digital Transformation initiatives assist large companies in helping them compete effectively with their peers as well as the startups. When management is willing to employ an exact DX strategy, competitive advantage will be in sight once again. With the correct mix of training employees, bringing in new talent, building a functional DX team, and working the plan leads to success. Only then the company is placed in an excellent position to effectively compete with startups. Otherwise, it is way more comfortable for a startup to innovate, employ new technologies, and provide solution-based products to customers without having to sweat it. They are gaining a competitive advantage in the David and Goliath sense.
Platinum PMO is an advocate and advisory in the ever-challenging world of DX. Experience, knowledge, and expertise in guiding clients through programs with relative ease, while providing the needed clarity during crucial decisions is a core value we provide to our clients. Do not hesitate to contact us, and see for yourself how we might be of assistance to you. We revel in solving (often avoiding) problems by providing efficient solutions that help YOU WIN!