What is Digital Business? + Digital Transformation Case Study
Summary
TLDRIn this video, Nile McOne explores the key factors that differentiate successful digital innovators from mere digital businesses. He emphasizes the importance of strategic leadership, a culture of innovation, and technology as a facilitator rather than a driver. Using a case study of Erin's business, he illustrates how digital transformation and embracing new technologies can lead to significant competitive advantages and business growth.
Takeaways
- π Digital businesses must go beyond just using technology; they need a strategic approach and a culture of innovation to gain a competitive advantage.
- π οΈ Technology alone does not create competitive advantage; it's the delivery agent for the strategies and innovations that do.
- π Digital innovators view digital transformation as a journey and actively engage in it rather than just adopting the latest tools.
- π€ Businesses that are stuck with 'doing digital' often lack leadership in strategic decision-making and fail to foster a culture of innovation.
- π Successful digital transformation involves changing business processes, using data to identify market opportunities, and innovating continuously.
- π‘ Digital innovators understand the importance of leadership in guiding strategic decisions and encouraging innovation within the organization.
- π The script highlights a case study of a business that transformed by identifying a market opportunity and changing its business model to offer value differently.
- πΌ The business in the case study leveraged digital tools and data to understand industry changes and pivot its approach to equipment sales and energy efficiency.
- π Digital transformation enabled the business to offer innovative solutions, such as providing kitchen equipment for free in exchange for managing energy bills.
- π By understanding and leveraging renewable energy and tax credits, the business was able to create a new, highly competitive business model.
- π The successful digital business in the case study demonstrates the power of leadership, collaboration, and innovation in becoming a true digital innovator.
Q & A
What is the main focus of Nile McOne's discussion in the video?
-The main focus is on what makes digital businesses or digital innovators succeed, emphasizing the importance of strategy, culture of innovation, and technology as the delivery agent.
What is the common misconception about digital businesses according to Nile McOne?
-The common misconception is that simply using the latest digital tools like blogging, Facebook, or having a CRM system will lead to success, which is not the case.
What role does strategy play in creating competitive advantage for digital businesses?
-Strategy is crucial in creating a competitive advantage as it helps businesses stand out and sustain their success in the digital landscape.
Why is technology alone not enough to create a competitive advantage?
-Technology alone is not enough because it only serves as a delivery agent. It needs to be combined with strategic decision-making and a culture of innovation to truly create a competitive advantage.
What is the challenge faced by businesses that are stuck in the 'doing digital' phase?
-These businesses are stuck because they rely solely on having the best technology and the label 'digital' without understanding the need for strategic leadership and a culture of innovation.
What does Nile McOne suggest as a solution for businesses struggling with competition and technology adoption?
-He suggests that businesses need to undergo a process of digital transformation, taking control of strategic decision-making, encouraging innovation, and changing business processes.
What is the case study about in the video?
-The case study is about a woman named Erin and her business, Commercial Kitchen Supplies, which went through a digital transformation process to become more successful.
What was the problem Erin faced in her business before the digital transformation?
-Erin faced the problem of reduced margins due to customers being able to easily compare prices and find cheaper options online.
How did Erin's business model change after the digital transformation?
-Erin's business model changed by offering commercial kitchens for free and charging customers based on their energy bills, taxes, and waste management costs, which she could significantly reduce through innovative solutions.
What role did leadership play in Erin's successful digital transformation?
-Leadership played a crucial role by taking control of strategic decision-making, encouraging a culture of innovation, and collaborating with technologists to create a more efficient and competitive business model.
What is the key takeaway from Nile McOne's discussion on digital businesses?
-The key takeaway is that a successful digital business is one where leadership, communication, and technology work together to innovate and change the business model, rather than just relying on technology alone.
Outlines
π Digital Innovation and Competitive Advantage
Nile McOne introduces the concept of digital businesses, emphasizing that merely using digital tools does not guarantee success. He highlights the importance of strategy, innovation culture, and technology as the driving forces behind competitive advantage. Digital innovators are those who have recognized the journey towards digital innovation and are not just stuck with the latest technology. The video will explore a case study of Erin, who transformed her business by adopting a digital transformation framework, focusing on strategic decision-making, encouraging innovation, and using data to identify market opportunities.
π‘ Transforming Business through Digital Innovation
In the second paragraph, Nile McOne delves into Erin's business transformation journey. Erin's business, Commercial Kitchen Supplies, faced challenges due to increased competition and the ability of customers to easily compare prices online. To overcome this, she utilized the seven principles of digital transformation to innovate her business model. Erin discovered opportunities in the energy efficiency of commercial kitchens, leveraging renewable energy and tax credits to offer a new service model. By replacing traditional kitchen equipment with energy-efficient alternatives and offering a cost-saving solution, Erin's business became a digital innovator. The key to her success was the collaboration between leadership, communications, and technology, which allowed her to rapidly grow her business and gain a competitive edge.
Mindmap
Keywords
π‘Digital Business
π‘Digital Innovators
π‘Competitive Advantage
π‘Digital Transformation
π‘Culture of Innovation
π‘Strategic Decision-Making
π‘Data-Driven
π‘Business Model Innovation
π‘Renewable Energy
π‘Technology Adoption
π‘Market Disruption
Highlights
Digital businesses need more than just the latest tools to succeed.
Strategy and culture of innovation are crucial for competitive advantage.
Technology is a delivery agent, not the sole factor for success.
Many businesses are stuck due to a lack of leadership in digital strategy.
Competition is forcing businesses to adapt and change.
Businesses need to modernize but also create competitive advantage.
Leadership must take control of strategic decision-making in digital transformation.
Encouraging a culture of innovation is key to digital success.
Business processes and data analysis are essential for identifying market opportunities.
Innovative business models can lead to rapid growth and success.
Case study of Erin's business shows the impact of digital transformation.
Erin's business faced challenges with competition and margins.
Digital transformation framework was used to radically change business operations.
Erin discovered opportunities in energy efficiency and renewable energy.
Offering kitchen equipment for free by reducing energy costs was a game-changer.
Erin's business model innovation created a competitive advantage.
Leadership, communication, and technology collaboration are vital for digital business success.
Erin's business became incredibly successful through strategic use of technology.
Transcripts
[Music]
hello my name is Nile mcone and today
we're going to be taking a look at what
makes a digital business what helps
those digital innovators succeed well
the truth is that many businesses are
simply doing digital we use all the
latest digital tools in the hope and
belief that if we blog enough or
Facebook enough or have the right CRM
system that that leads to success it
doesn't we know that strategy creates
competitive Advantage people in our
culture of innovation is what sustains
it and technology is the delivery agent
and many of those digital businesses
have cottoned on to that fact some
another word for digital businesses is
digital innovators so what is it that
they do that most of us don't do well
they perceive that this new land of
digital Innovation there is a journey
that most organizations can go towards
it those that are doing digital are
stuck because they are have just got the
best technology they happen to have the
word digital and believe that it should
be allocated to either a marketer or a
technologists who then deliver the
websites and the social channels and the
the tools that are needed in order for
the business to operate that does not
create competitive Advantage the
leadership part has been missing others
find that the challenge is a little bit
more daunting they find that competition
is starting to force them to make other
changes they get the latest technology
they follow all the marketing Trends
they Microsoft 365 they've got Oracle
sap whatever it happens to be and
they're pulled by what they're told by
the technologists is going to lead them
to a new
land that creates a little bit of a gap
it modernizes the business but it
doesn't necessarily create competitive
Advantage those businesses that have got
to closer to this new land have become
gone through some sort of process of
digital transformation their leadership
has taken control of the Strategic
decision-making they've tried to
encourage a culture of innovation within
their organization they've changed their
business processes they're using data to
help them to Define if there's Market
opportunity who the competitors are that
must be displaced they're looking for
cycles of innovation they have new
business models that they're taking on
and they tell the technologists what it
is that they want and all of this tends
to lead to create a much more successful
digital business
so now we're going to take a little look
at a kisse study of someone who has gone
through this process in this case study
I'm going to use the lady by the name of
Erin and her business which is not her
actual real name and it's not a real
business name but I can guarantee you
that the story is completely True
commercial kitchen supplies supplies
this kind of stuff here all of the stuff
that you would see in a commercial
kitchen the problem that Aaron is facing
is that it used to be she could create a
relationship with a hotelier or
restaurant send them the quote for the
equipment charge them an installation
fee and then they would buy it now they
can Google it find out the exact cost
from a range of competitors from a range
of countries even the secondhand price
on eBay and make decisions which are
forcing down her margin she then has to
do something about it and is wondering
what it is that will take to make the
change in her business she has been
doing digital to this point she uses the
seven principal's digital transformation
framework and she goes to town trying to
transform her business to make it more
successful so as I said she was doing
digital she happened to have her
e-commerce site going she happened to
have her AdWords running she happened to
have her social channels going but it
really wasn't changing the situation
much she then tried to adopt with new
technology where she had better
Logistics better supply chain better
automated
marketing but again this improved her
business marginally but didn't give her
this massive rapid growth and she was
still finding to be a very competitive
situation when she went through the
digital transformation framework she was
able to radically change how she did
business what happened to eron was that
she discovered that there was a wave of
change coming to the industry hoteliers
and restaurant did not understand what
300 watts versus 160 Watts meant when it
came to energy consumption and the
relationship with money Aaron realized
that with renewable energies carbon tax
credits new me methods for purchasing uh
equipment that was through lease options
the ability to reduce energy costs
through induction rather than gas the
ability to change how we ventilate kit
commercial kitchens using renewable
energies attached to the roof heat
extractors and many other things that
she could massively reduce the cost of
ownership of a kitchen in fact she could
reduce the cost of ownership so much
that she could offer the kitchen for
free all she asked for was let me take a
look at your energy bills right now I
will replace your equipment for you and
you keep paying me what you would have
been paying in those energy bills and
taxes and waste management
costs this changed the game she became a
digital innovator Now where's the
digital in all of this 5 years ago she
would not have been able to get Baseline
energy usage she would not have been
able to get the new technologies to
create Renewables with inside the
organization solar panels on roof wind
turbines to help H ventilate K kitchens
she had to create Partnerships she had
to understand tax credits she had to
create a mechanism that allowed her
Salesforce to be able to go onto the
road to sell this and by the time she
has done this kind of
leadership the competitors aren't even
at the starting git she's created two to
three years of spare space and
opportunity where she practically goes
uncontested she sees rapid growth in her
business and has now become a digital
business because the leadership the
communications people and the
technologists collaborated with the
deliberate effort to innovate and change
the business model to become a digital
business aerin's business is incredibly
successful she uses technology more than
I've ever seen anyone else but she's
been using the technology because she
pushes her business further and the
technologists respond by creating better
efficiencies within the
organization that to me is what makes a
digital
business thanks for
watching watch subscribe and like please
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