Discovery-driven digital transformation
Digital disruptors and new business models pose a huge threat to more traditional companies. But just because a threat is huge doesn’t mean the response needs to be, according to Rita McGrath and Ryan McManus. Large, traditional companies “would actually be much better off taking a more incremental approach to transformation over time,” they write in this HBR article. A step-by-step transformation works better for traditional firms than an all-or-nothing approach because bigger firms typically have a key advantage over startups: they have the resources to explore a variety of ideas and can more easily experiment with different processes and operations. For this reason, they have a better chance of responding effectively to a digital challenge. In this article, McGrath and McManus explain how larger organizations can learn their way toward a new digital business model.