Copyright © 2016 Tata Consultancy Services Limited

The Responsive Enterprise: Capitalizing on Disruptive ChangeKrishnan Ramanujam, Vice President and Global Head – Consulting & Enterprise Solutions

February 2016

PERSPECTIVESVolume 7 | Chapter 1

Companies that react first and best to cross-currents in their markets are the ones that survive

Apple’s phenomenal success was a result of focusing its formidable design, packaging, and marketing powers on the new forms of digital technology

Walmart adapted to the internet’s threat and now has a thriving ecommerce business

Surviving and thriving in a sea of change

@

Monitor and improve customer experience across all channels

Install technologies that enable new processes for marketing, selling to, and servicing customers

Speed up product and service innovation for changing customer needs

Fundamental areas that demand change

Achieve business model innovation

Being responsive is easier said than done

A responsive enterprise transforms the way it organizes business processes and IT, and how it pursues market opportunities.

Transformation can be difficult for successful, experienced executives who resist new ways of doing business.

GE was slow to recognize the need for change but is now rapidly returning to its roots as an industrial products company, while growing a services business around it.

Six elements of a responsive enterprise

Business Strategy + Operations Design +

IT Design

All Aboard the Change Express

Rapidly Implementable Enterprise SystemsDigital DNA

Skills and Talent for Differentiation

Detection of the Need for Business Model

Innovation

Senior executives need to believe that digital technologies have, and will continue to revolutionize their industry

In a responsive enterprise, digital DNA represents the worldview and insights that guide executives’ thinking about the business

Leaders should build a clear understanding of what customers value and how digital technologies can help deliver it

1. Build digital DNA at the top

Standardizing processes by implementing enterprise systems on the cloud

Redesigning the customer experience through focused, speedy trials for new processes

Optimizing the supply chain in response to product proliferation, micro-segmentation of customers, and the Internet of Things

2. Meld strategy, operations design, and IT

Companies must simplify their business models by:

Customer-facing functions need standard systems to support business processes

Waterfall approaches should be replaced with agile development techniques that combine business process design, software development, and IT operations

Standardization and cloud-based software will help companies build new systems faster

3. Rely on enterprise systems

Companies need to grow and attract talent for the new roles created by digital technologies: data scientists, IoT experts, and digital and social media marketers.

Among the most important are Big Data number-crunchers who can provide accurate insight into the effectiveness of products and processes.

Retraining employees with the ability and desire to master new skills is imperative, as new talent may be difficult to find.

4. Build skills and attract talent

Companies need to ‘sense and respond’, and identify emerging technologies that are truly disruptive

Managers must set aside time to understand business model implications of technologies and test new business models

5. Nurture business model innovation

Multiple changes – in business models, processes, technologies, and skills –pose a significant challenge for leaders

Managing cultural change through clear communication and organizational design is key to the success of IT enabled transformation initiatives

Senior managers must harness the continuous customer feedback from digital media to reshape their companies’ futures

6. Get on board the fast-moving train

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