Becoming a digital enterprise requires far more profound changes than merely investing in the latest digital technologies. Companies will need to search for new business models, fundamentally rethink their operating models, revamp how they attract and foster digital talent, and consider afresh how they measure the success of their business.

There are a number of areas that many companies will need to reassess and reform if they are to become digital enterprises. Three key areas have been identified: digital business models (what companies need to do); digital operating models (how they can do it); and digital talent and skills (who they need to work with to succeed).

Five distinct methodologies can be applied to develop new business models:

• Scenario-based design – Creates future business models in response to disruptive industry trends
• Epicenter-driven design – Uses strengths and weaknesses of the existing business model to generate ideas
• Unorthodox design – Forms business models by challenging existing industry logic and company clichés
• Customer-centric design – Builds business models through customers’ eyes based on the question: Does this solve their problems?
• Mirrored design – Based on the finding that 90% of new business models are not actually new, this creatively imitates business model patterns from other industries

When there is no immediate strategic need to own, a corporation can partner with a digitally native disruptor to learn more about the market and its partner’s model. A partnering approach is sensible when it makes sense to watch and learn about emergent opportunities, with an eye toward deeper partnerships or acquisitions in the future. Companies need to develop a more flexible and open mindset toward partnerships.

Credits - World Economic Forum White Paper, Digital Transformation of Industries: Digital Enterprise