Forrester predicted in 2018 that digital[1] would reach the hard stuff, the core of business: Organization structure, operating models, and endless discussion of platforms. These themes are far from done; however, 2019 sees a distinct shift in emphasis -- winter is coming.
Also: Digital Transformation: A CXO's Guide[2]
In 2019, economic uncertainty stalks the halls, and budgets will see pressure. Many firms are failing at full-scale "big bang" enterprise transformation[3], 21 percent already think they've finished -- and the rest risk losing their way. For digital leaders, necessity is the mother of innovation as firms accelerate their recession planning and focus on supporting operational improvements that drive tangible benefit for both firm and customer.
Forrester released its annual digital business predictions with clear advice that now is the time to reboot transformation. Firms should focus on digitizing experiences in the service of customers, using technology and partners to create short-term gains that underpin long-term ambition, and drive operational change from there.
Here are some takeaways from our 2019 digital predictions[4]:
- The caterpillar of transformation becomes the nimble butterfly of innovation. Transformation is far from done and needs to get back to its roots: small, manageable chunks of focused innovation that deliver tangible benefit -- but also have a collective purpose so that the sum is greater than the parts. A big-bang approach was never the answer, and Forrester predicts that digital leaders will narrow their focus from transformation to innovation, weaving innovation with digitization of strategy. In 2019, firms will start measuring a new ROI: "return on innovation," with digital technologies being ranked by the benefit for the firm.
- Digital needs to pay its way with a downturn around the corner.