TechQuilibrium (a portmanteau of technology and equilibrium) is a balance between tradition and transformation. Each organization has its own techquilibrium depending on its industry, geography, target demographics, history, business goals, etc.
All the top executive management teams need to design a value proposition that drives the right mix of traditional and digital business. It can not be dedicated to someone. Of course, top management needs to have a good understanding and know how to leverage digital transformation in the business they are in, from past, present, and the change in the future. Same as well for maintaining eye wide open for changing in the difference sectors and industry, and what the new problem and solution worth to be consider and develop new business model to address them. Different business have different TechQuilibrium, not every industry needs to be digital in the same way or to the same extent.
For example, the techquilibrium of an apparel producer differs from the techquilibrium of a financial services provider —two very different markets that absorb digital transformation differently. And, just as techquilibrium differs between organizations, so too can it differ between departments within an organization. No to mention for cross region cultural differences and way of doing business is different.
Another important concept is “shift”. An organization’s techquilibrium shifts over time, driven by changes in geopolitics (regulations), economics (recessions), and the influence of digital giants (industry direction). As a result, organizations must frequently pivot towards either transformation or tradition as business needs and requirements shift. In order to navigate these disruptive turns, organizations have to achieve the paradoxical: organizations have to be both traditional and transformational. It like dilemmas, cutting costs and investing for growth and innovation. You need balancing for the both to make it work. In more operation level, need to consider technology infrastructure such as cloud and on-premise, new customers and existing customers, democratisation and centralization, shared services and outsourcing and business choices, risk and security and many more.
Achieving techquilibrium continues to be challenging for the world is under rapid progress for digital transformed, digital transformation is not an option, it matters for how fast you adapt to it in the right way. The world is rapidly changing and so organizations must continually adjust their techquilibrium in order to meet evolving market demands and business requirements. This brings in concept more tangible and workable for kick start digital transformation.
Regardless for your current state for pursue digital transformation, you need to have foundation ready first before you can talk techquilibirum. First things first, are your business make use of IT automation? Here the world is “IT automation”, no about investing in IT hardware, software or services, but have the “IT automation” implemented just like manufacturing assembly line from keep producing results, but in the way minimum manpower intervention. If you are still base on human operate IT tool to generate manual result in the old way (just duplicate human process into digital), you are in the very early stage to really can reap the benefits of digital transformation.
You can see how it simplify into single diagram below for easy understanding those concept how it work together.
But for the above is no enough, it do not cover the forces of changes. So for the right way to achieve TechQuilibrium need to cover the five new forces of changes.
The three forces of change:
- Geopolitics: With more global and regional regulation, geopolitical changes influence everything between cloud strategy and data, particularly with multinational enterprises (MNCs).
- Economics: Whether the country market is heading toward a recession have business impact for whether you keep invested in innovation or make the massive cost cutting to make sure you are survive.
- Emergence of digital giants: Most enterprises of the future are not going to be one or the other, digital or traditional. Instead, they will be a healthy hybrid, showcased by the inter-industry cross breeding of companies. The distinction of a “tech company” will eventually disappear.
- Competition: your existing and new competitors and extend of them adapting digital transformation also have the impact since it all about relative.
- Market behavior: the buyer change in the existing buying behavior or being teach or educated with new way for better address their problem, like reading newspaper to using mobile reading online real time news, all impact on your approach.
E-SPIN being in the enterprise technology business since 2005, and keep active in assist enterprise customers for implementing various digital transformation initiative to achieve their right techquilibirum. Feel free to contact E-SPIN for your business initiative and operation requirement.