Legacy companies must reinvent or die under digital transformation era

Since Tom Peter and Robert Waterman written and published In Search of Excellence in 1982. Those large firms with dominant positions in markets that were senescent or static in the past. Then the wave for Good to Great, and now in 2019, after globalisation, internet, digital economy and current digital transformation era.

Market size alone or in the past absolute market share all can be disrupted by the changing technology. Lot of traditional work needs lot of workforce manpower. But once digital transformation, lot of the labor and manpower exceed company need become a key challenge. They are restrict by the high fixed cost for make the strategic move that needed to be taken to make sure company continue survive in the future.

We saw lot of giant corporation from somebody and end become nobody, out of business or acquired. We saw the transition from traditional mobile phone, replaced with smart phone, and recent shift toward Made in China smart phone conquer the world. We saw the traditional camera manufacturer is keep evolving and attempt to counter the challenge of the smartphone. Camera manufacturer keep produce high end and smaller camera, from DSLR to mirrorless crop sensor, and now mirrorless full frame. Smartphone is also evolved to high resolution big aperture len, to built in 3 lens for cover all the scene, from wide landscape, telephoto, portrait optimised. We saw the disruptive technology introduce into capture photography, from action camera, 360 degree, 3D to air droid flying camera invented.

Same challenge is encounter by other industry and sector, such as banking with fintech, insurance with insurtech, telco with 5G. For the government end we saw the compete for being smart nation, smart city and e-government.

It not about just reacting to the digital transformation (DT), but had the visionary insight how to make use of the digital transformation to create new competitiveness advantage for the enterprise or the nation. It all start from those legacy companies leader to really get the insight of what digital transformation is all about and how to adopt the new technology for the change for the better tomorrow.

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