In a recent post on this blog, I walked through various steps enterprises need to take within each phase of their product development lifecycle. However, Joe Nocera’s article in the New York Times How Not to Stay on Top, discusses two companies who were the market leaders that eventually lost their share to other companies. These companies may have diligently followed the right processes within each phase of their product development lifecycle. But were they doing it for the right product? What could they have done strategically to sustain the continued evolution of their products to meet the growing demands of the consumer? The New Style of IT might provide some pointers.
Here are three key steps that these companies could have taken proactively to ensure their market presence:
1. Flexible Business Model. While these enterprises did have an original product design that served the needs of the customer initially, they should have had a business model of anticipating and adapting to the changing needs of the customer.
2. Customer-centric Strategy. The business strategy for these enterprises should have been driven by their customers rather than by their product.
3. Continuous Product Evolution. Based upon the customer input on their products, these enterprises should have continuously evolved the product architecture to be in line with market trends.
Let’s now forward to today. How would these experiences apply to other enterprises of today? Surprisingly, the answer is not any different. Even today, enterprises need to remain nimble with an agile business model that continuously adapts to the needs of the consumer.
What is different today is the New Style of IT, which defines the connected world of the consumer across multiple paradigms enabled by a broader and richer landscape of tools and solutions. As I outline in my earlier post, The New Style of IT opens the door for enterprises to apply innovative technologies, in the context of their business and their industry, which can be used to process the data to generate information – their most valuable asset.
However, enterprises cannot stay competitive in the future just because of these technologies.
A defining aspect of the New Style of IT is Action.
Enterprises that take action on the insight gained by using these technologies in a timely fashion will stay ahead of the game. Enterprises that don’t will eventually get categorized as “old-style enterprises” serving as some more examples of How Not to Stay on Top.
How are you sustaining the evolution of your products? What are the steps taken by your enterprise driven by the New Style of IT? What are some other steps that enterprises can take to stay on top? Please let me know.