Can an organization become resilient to rapidly changing business conditions to more easily survive “COVID” events? What “vaccine” should we develop to even become immune to them? How to increase business agility?

If yesterday we talked about the VUCA world (Volatile – volatility or instability and unpredictability of change, Uncertain – uncertainty, Complex – complexity, Ambiguous – ambiguity), today we are talking about a version called DVUCAD, where the first “D” means Disruption and the other “D” means Diversity.

These Ds are all around us all of a sudden: Digitization, Digital Business, Digital Transformation, Digitality, Digital Experience (Dx), Digital Technology, Digital Jobs (Digital Workplace), Digital services & products, Digital Channels, Digital Platform, Digital business models, Digital Disruption, Digital Economy).

Although, in reality, most of these terms have been present in the world for almost ten years, Slovenian organizations recognize them faster and deal with them more often due to recent events. In the new reality conditions, for successful organizations, “D” has already become the first letter of the alphabet of their business. Those organizations that continue to stay with “A” (analog) as the first letter of the alphabet are unlikely to survive the next significant disruption.

“A” organization should start their digital business transformation and increase business agility quickly so that they can at least survive. In doing so, they need to be aware that this does not just mean starting and ending with the introduction or improvement of their online store and/or delivery logistics. So what do they have to do?

For their future operations and to increase business agility, organizations should be aware of at least the following five key differences between the old way of doing business and the necessary new way of doing business in the digital economy:

  1. The starting point of the business of “D” organizations lies OUTSIDE the organization: “A” organizations are too concerned with themselves or with their interior matters. Even when talking about customers (for example, introducing an information CRM solution), they have in mind how they will gain themselves – how they will sell more or manage and / or change the customer, instead of understanding that they have to change themselves first, that they will be able to help the customers, inspire them and keep / gain them for as long as possible in their life cycle.
  2. The focus of the offer of “D” organizations is no longer products and services, or their quality and functionality, but the “higher” needs of customers, such as experience. The value for customers comes from their needs and not from our products. At COVID similar events, the satisfaction of basic needs gains in importance, but next time it will be crucial what kind of experience the customer will have (the so-called multi-channel SafeX).
  3. “D” organizations have digital forms of value in their offer, usually based on customer experience and the use of advanced digital technologies. For example, marketing presentations are carried out with the help of virtual fairs, sold in virtual salons, with the help of an illustration of the customer’s experience after the purchase. Meanwhile, “A” organizations is barely transitioning to classic online sales full of errors typical of beginners.
  4. Digital business models of creating and maintaining value for customers and the organization are based on new concepts and business models (for example, “everything as a service”) and the highest possible connected use of digital technologies (for example, to enable multi-channel purchases). Meanwhile, “A” organizations continue to use traditional business-type business models – sales with the majority of human labor in all phases of business, from innovation to sales, which only occur with traditional information support (ERP type).
  5. While “A” organizations struggle alone or perhaps still (unequally) collaborate with other organizations in individual business phases (such as supply chains), “D” organizations in partner business ecosystems together comprehensively and equally co-create a value proposition throughout the customer’s life cycle in several related areas of their needs.

The existing vaccine does not protect us from new cases

It is common knowledge that vaccines are developed primarily based on previous cases of the disease. Therefore, they only work when the same or very similar recurrences occur. In new situations, a new vaccine is needed, which, of course, needs to be re-purchased, but it can also bring strong side effects.

If we transfer this to the world of organizations, it means that their future performance cannot be based on the same things that led to its current production, but can only be new capabilities with the partial help of some old evergreen capabilities. The problem is most often that organizations do not know that a critical future has already come for them, and therefore still operate on the principles of the present. But there should be no excuses for these “A” organizations after the COVID events. If a good previous financial condition (proper nutrition) may have helped them this time, most of their reserves have already run out.

The solution lies in business resilience and high doses of “D” vitamin

In the DVUCAD world, it is unrealistic to expect organizations to become permanently immune. Repeated vaccinations (state aid or financial injections from investors) are also not a solution for them. The only real solution for them is the best possible business resilience.

Resilience in the world of organizations means the ability to adapt quickly to new conditions.

For it, organizations must: 1. first have a good business immune system based on a unified culture, the right abilities and competencies, agility, quick decisions based on verified data; 2. maintain good condition based on excellent customer experience with their brand, digital business models and compliance of external and internal processes; 3. Continually introduce large doses of “D” vitamin, which means continuous innovative use of the capabilities of digital technologies to create a new digital value offer based on customer and situation-specific coverage of basic and new needs.

If your organization is not good enough in all three, it will become very ill with the next disorder, and even its survival may be in danger. You certainly don’t want that, but you also need to move something. I can only whisper, “Get started as soon as possible!”

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