Open by design
Open by design
פורסם בתאריך 15/05/17 14:07, מאת Daphne Gottschalk

Jeff Immelt, the chairman, and CEO of General Electric put it best: “If you went to bed last night as an industrial company, you’re going to wake up today as a software and analytics company.”

In today’s era of flat growth across most industrial industries and in most parts of the world, the real opportunity lies in the digital economy. In what’s being touted as the fourth industrial revolution, everything (people, things, processes) are digital and connected, data is the currency and analytics and intelligence becomes the value exchange occurring in digital ecosystems.

We’re seeing this at our customers, communications service providers, who are shifting from being a traditional communications provider to becoming a digital service provider or technology provider. This is no trivial move or cosmetic rebranding: It’s a fundamental change in their core identity, which transforms the way in which they think, how they operate and how they are going to make money.


And this market opportunity -- driven by what is known today as the DX economy -- is huge, predicted to reach $8 trillion in the next five years, most of it in B2B or B2B2x. But in order to take advantage of this, traditional organizations must adopt new modes of operation and growth.

Past patterns of organic growth augmented with M&As is no longer the way to grow and enjoy the DX addressable market. The only way to really grow is through adopting and leveraging an ecosystem approach where an interdependent group of actors (enterprises, people, things) share standardized digital platforms and create value with new business models superior to those businesses operating independently.

Bottom line: The only way to make money in this concept is if other players in your ecosystem also make money too – and that’s a paradigm shift.

But making this shift is not easy. For a start, changing how we operate today entails making investments now and only seeing the fruits of it later as the market matures -- not an easy conversation to have with your board members.

Furthermore, because the market is so disrupted and competitive, and customer loyalty so fragile and tricky, most of us stick to our guns and our core assets in order to ensure stickiness.

And then, if you’re the large incumbent, you have to overcome a solid organizational DNA that has made you successful up to this point and which is not exactly embracing new ways of working in an ecosystem mode. Plus you can’t just throw away the complex technology legacy that has served you and your enterprise customers over the past decades.

And yet, we all know that things have to change.  We all need to start the journey from being a linear-value-chain business, trading with well-known partners and adding value in steps, to becoming part of a faster and more multidimensional network in which we basically enable everyone in our ecosystem –customers, partners, users and developers -- to exchange value among themselves easily and at an ever-growing pace.

Unlike the traditional model, this model is exponential. It’s based on the principle that we are no longer just monetizing a linear value chain, but are part of a whole value grid that behaves similarly to the network effect we see today in which a good or service becomes more valuable when more people use it.

This transition is a journey. It doesn’t happen overnight. Large corporations are taking the steps to become familiar with and adapt to these new models, and it is a change that needs to occur at all levels – organizational, technological and business leadership.

In the near future – organizations that master this transition will become the top performers in the industry, attracting more and more players in their ecosystem and enjoying new ways of growth.


(Photo credit: Omer Messinger, Tau innovation)

Daphne Gottschalk runs Amdocs Innovation Program, which includes scouting and partnering with a large ecosystem of start-ups and prestigious academic institutions who offer business value to Amdocs business and its customers. She’s also responsible for introducing new best practices to enable innovation across Amdocs units and customers