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Technology Isn’t the Answer to Surviving Digital Disruption | @CloudExpo #Cloud #Agile #DigitalTransformation
Despite the rhetoric, executing a digital transformation is about making technology so ubiquitous that it becomes invisible

Technology Isn't the Answer to Surviving Digital Disruption
Guest post by Charles Araujo, Principal Analyst, Intellyx

There's a funny thing about digital transformation: we are simultaneously over-hyping it and understating it. On the one hand, every tech company in the world is talking about it. It doesn't matter how mundane the technology; every company is somehow relating their products to digital transformation.

On the other, many people are failing to grasp the import and impact of what digital transformation really means. In far too many cases, business and IT leaders are dismissing it as nothing more than a marketing ploy. The unfortunate result is that the over-hypedness of digital transformation is obscuring its real meaning.

This dichotomy is most apparent in what I call the tech company fallacy.

Everywhere I turn, I hear another company executive make a proclamation that they are no longer a retailer, a toy manufacturer or whatever kind of company they are - and then say, "We're a tech company that happens to <<insert product or service here>>." Ugh.

On one level, it's understandable. Transforming an organization - particularly a large enterprise - is tough work. You need to jolt people out of their comfort zone and create enough urgency that they are willing to forgo the security of "the way things have always been done" to embrace the uncertainty of new.

The rallying cry of digital transformation is an easy foil for this purpose. But it's also a trap.

The Tech Company Trap
I blame Amazon for creating this phenomenon. They launched as an "online bookstore" - and most people took them at face value. As Amazon began expanding into other product lines and their dominance became clear, people realized that they were much more than just an online bookstore or even an online retailer - they were a tech company!

Amazon's eventual move into cloud computing with the Amazon Web Services (AWS) platform cemented this notion that they were a tech company who happened to sell stuff. The problem is that Amazon has always been a tech company.

Jeff Bezos started Amazon as an internet company in search of something to sell. He settled on books for very pragmatic reasons, but make no mistake - as much as Google or Apple, Amazon has always been a tech company.

This distinction is not insignificant. A tech company is one in which technology is the product they sell. In the case of Amazon, their real product is their cloud computing platform and the e-commerce platform they ‘sell' to third parties who use it to sell their goods.

Companies like Uber and Airbnb have further muddied the water. Industry pundits love to hold them out as shining examples of the tech company ethos that enterprise organizations must emulate - but should you?

Failing to Find the Real Transformation Story
As Intellyx president Jason Bloomberg discussed in his Forbes article, Top Five Enterprise Digital Mistakes, Uber and Airbnb have become poster children of the digital era mostly because they viscerally represent the threat of disruption to well established industries. "Wake up or you will be Uberized next!" cries the call to action.

Unquestionably, Uber and Airbnb operate like technology companies. They deliver a technology platform that disintermediates industries that were otherwise difficult to coalesce into a single addressable market. They removed inefficiency, provided simplified access to an otherwise dispersed set of assets and thus created a centralized market where one did not exist.

There are certainly other industries where these circumstances exist, but let's be clear: the whole world will not be Uberized.

As evidence of the new world order, pundits love to point out that Airbnb now has more rooms available than the largest hotel providers - yet they own no property. Recent analysis, however, shows that only approximately 43% of Airbnb listings are actually competitive to hotels. Moreover, Airbnb most likely represents no more than 15% of all rooms available worldwide - and probably much less.

There is already evidence that Airbnb's growth is cooling. This fact isn't surprising when you consider that there is a significant difference in the customer experience that Airbnb delivers versus that of a full-service hotel.

Airbnb, Uber and other paragons of the sharing economy are powerful examples that the digital era enables entirely new technology-powered customer experiences - but that is not the real digital transformation story.

The Goal: The Ubiquity & Transparency of Technology
It is easy for the promise of Uber and Airbnb to seduce - and frighten - business executives. It makes sense that they will use the tech company ethos as a rallying cry to inspire a transformational effort.

The problem, however, is that it puts the focus on the wrong thing - the technology - and surrenders their greatest potential competitive advantage: customer intimacy.

Most traditional enterprise organizations have risen to prominence based on their ability to connect with their customer's needs and desires. They should not suddenly abandon their rich history and recast themselves as tech companies.

In fact, they should do the opposite. Traditional enterprises must embrace their heritage, but see themselves in terms of the value they provide and the relationships they have with their customers - rather than the products they produce or the services they deliver.

The goal is not to become a tech company. The goal must be to embed technology so ubiquitously and so deeply within the culture and operating model of the company that it becomes transparent - allowing you to enhance the customer experience and deepen your relationships.

The challenge is that most traditional organizations have a self-view that is essentially synonymous with the product they sell or the service they provide. The required shift is not to become a tech company, but rather to make the organization synonymous with the value they provide and the relationship they create. The organization can only re-envision its business model from that perspective.

The real goal of digital transformation, therefore, is to leverage technology to reshape and enhance the value you deliver to your customers. Whether it leads to an entirely new business model or simply a better, technology-enhanced version of your existing one is immaterial. The objective is that technology becomes invisible to allow you to focus on how to create greater value for your customers.

The Intellyx Take
Calling yourself a tech company is expedient - but it is also misguided. In the digital era, every company that survives will have technology at the core of its business and operating model.

Business executives must lead the digital transformation of their organizations and be willing to re-envision how they operate on every level in order to remain relevant. But simply calling yourself a tech company will not be enough and is much more likely to demoralize your team rather than motivate them.

You must instead create a vision of something entirely new: a vision of your company that is exciting, modern and that feels at home in the future, but that respects your organization's storied history and deep customer relationships.

You must culturally and structurally transform your organization to compete in the digital era. You must embed technology and the digital ethos into the very core or your operating model. But you must also never forget that it is your unique ability to serve your customers that has been and will remain the driver of your success.

Copyright © Intellyx LLC. Intellyx publishes the Agile Digital Transformation Roadmap poster, advises companies on their digital transformation initiatives, and helps vendors communicate their agility stories. As of the time of writing, none of the organizations mentioned in this article are Intellyx customers.

About Jason Bloomberg

Jason Bloomberg is a leading IT industry analyst, Forbes contributor, keynote speaker, and globally recognized expert on multiple disruptive trends in enterprise technology and digital transformation. He is ranked #5 on Onalytica’s list of top Digital Transformation influencers for 2018 and #15 on Jax’s list of top DevOps influencers for 2017, the only person to appear on both lists.

As founder and president of Agile Digital Transformation analyst firm Intellyx, he advises, writes, and speaks on a diverse set of topics, including digital transformation, artificial intelligence, cloud computing, devops, big data/analytics, cybersecurity, blockchain/bitcoin/cryptocurrency, no-code/low-code platforms and tools, organizational transformation, internet of things, enterprise architecture, SD-WAN/SDX, mainframes, hybrid IT, and legacy transformation, among other topics.

Mr. Bloomberg’s articles in Forbes are often viewed by more than 100,000 readers. During his career, he has published over 1,200 articles (over 200 for Forbes alone), spoken at over 400 conferences and webinars, and he has been quoted in the press and blogosphere over 2,000 times.

Mr. Bloomberg is the author or coauthor of four books: The Agile Architecture Revolution (Wiley, 2013), Service Orient or Be Doomed! How Service Orientation Will Change Your Business (Wiley, 2006), XML and Web Services Unleashed (SAMS Publishing, 2002), and Web Page Scripting Techniques (Hayden Books, 1996). His next book, Agile Digital Transformation, is due within the next year.

At SOA-focused industry analyst firm ZapThink from 2001 to 2013, Mr. Bloomberg created and delivered the Licensed ZapThink Architect (LZA) Service-Oriented Architecture (SOA) course and associated credential, certifying over 1,700 professionals worldwide. He is one of the original Managing Partners of ZapThink LLC, which was acquired by Dovel Technologies in 2011.

Prior to ZapThink, Mr. Bloomberg built a diverse background in eBusiness technology management and industry analysis, including serving as a senior analyst in IDC’s eBusiness Advisory group, as well as holding eBusiness management positions at USWeb/CKS (later marchFIRST) and WaveBend Solutions (now Hitachi Consulting), and several software and web development positions.



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Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or personal computing needs.
All in Mobile is a place where we continually maximize their impact by fostering understanding, empathy, insights, creativity and joy. They believe that a truly useful and desirable mobile app doesn't need the brightest idea or the most advanced technology. A great product begins with understanding people. It's easy to think that customers will love your app, but can you justify it? They make sure your final app is something that users truly want and need. The only way to do this is by researching target group and involving users in the designing process.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to advisory roles at startups. He has worked extensively on monetization, SAAS, IoT, ecosystems, partnerships and accelerating growth in new business initiatives.
Whenever a new technology hits the high points of hype, everyone starts talking about it like it will solve all their business problems. Blockchain is one of those technologies. According to Gartner's latest report on the hype cycle of emerging technologies, blockchain has just passed the peak of their hype cycle curve. If you read the news articles about it, one would think it has taken over the technology world. No disruptive technology is without its challenges and potential impediments that frequently get lost in the hype. The panel will discuss their perspective on what they see as they key challenges and/or impediments to adoption, and how they see those issues could be resolved or mitigated.
Lori MacVittie is a subject matter expert on emerging technology responsible for outbound evangelism across F5's entire product suite. MacVittie has extensive development and technical architecture experience in both high-tech and enterprise organizations, in addition to network and systems administration expertise. Prior to joining F5, MacVittie was an award-winning technology editor at Network Computing Magazine where she evaluated and tested application-focused technologies including app security and encryption-related solutions. She holds a B.S. in Information and Computing Science from the University of Wisconsin at Green Bay, and an M.S. in Computer Science from Nova Southeastern University, and is an O'Reilly author.

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Digital Transformation Blogs
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or personal computing needs.
All in Mobile is a place where we continually maximize their impact by fostering understanding, empathy, insights, creativity and joy. They believe that a truly useful and desirable mobile app doesn't need the brightest idea or the most advanced technology. A great product begins with understanding people. It's easy to think that customers will love your app, but can you justify it? They make sure your final app is something that users truly want and need. The only way to do this is by researching target group and involving users in the designing process.
Authorization of web applications developed in the cloud is a fundamental problem for security, yet companies often build solutions from scratch, which is error prone and impedes time to market. This talk shows developers how they can (instead) build on-top of community-owned projects and frameworks for better security.Whether you build software for enterprises, mobile, or internal microservices, security is important. Standards like SAML, OIDC, and SPIFFE help you solve identity and authentication, but for them authorization is out of scope. When you need to control "who can do what" in your ...