Orchestrating Transformation - Preview

The Context for Transformation

It’s designed for “practitioners” whose job is to drive digital business transformation—significant, strategic, at scale—for their companies. It is not a general book about digitization, technology, or garden-variety organizational change. UPDATE FROM THE DIGITAL VORTEX When we formed the DBT Center in 2015 and began our deep-dive research and client engagement on digital disruption, we quickly rec- ognized its potential to reshape competitive landscapes and deeply affect the future of all industries. As we reviewed the data we had gathered, the metaphor of a vortex emerged for us to help describe the market change we were observing. A vortex, like a tornado or whirlpool, exerts a rotational force on ob- jects around it, drawing them toward its center. The Digital Vortex is the market context of disruption, characterized by an irresistible force that pulls all organizations toward a point where “everything that

can be digitized is digitized.” Offerings, business models, and value chains become digitized, and physical com- ponents that inhibit compet- itive advantage (e.g., legacy investments, physical infra- structures, and manual pro- cesses) are cast off. In a vor- tex, objects often break apart from the force of the rotation. That is precisely what is hap-

The Digital Vortex is the market context of disruption, characterized

by an irresistible force that pulls all

organizations toward a point where “everything that can be digitized is digitized.”

pening to incumbents’ value chains—disruptors are unbundling links in the chain with digital technologies and business models that allow them to create new value for customers and market change in the process. As companies are pulled toward the middle of the vortex, where dig- itization and disruption are most intense, they collide and create new competitive forms; industry convergence, whether between banking and retail or healthcare and telecommunications, becomes the norm. Disruptive companies like Tencent and Amazon are using digital ca-

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