April | 2018
There is no longer a question about whether organizations need to transform. Companies, both big and small, understand that becoming digitally relevant is the only way to ensure growth and survival. The question many executives ask is how?
Transformation is not a one-time solution, but a constant state of adaptation that adjusts course to meet the needs of ever-changing consumer expectations. Organizations need to rework how they operate, and there are two potential approaches that are most effective at creating actionable strategies that truly move the needle while keeping their company’s unique potential and goals at the forefront: incubation and inoculation.
Understanding the different strategies
Companies that incubate are looking for ways to come up with a new product or business model outside of existing legacy mindsets. Rather than changing the core, incubation allows you to learn outside-in, start something new and overcome cumbersome processes and hierarchies. This strategy often involves the creation of a new entity or standalone company. A good example of incubation done right is Bank Leumi. To appeal to a millennial market, they decided to create Pepper, an entirely new mobile bank and brand free from legacy technology and systems.
Choosing to inoculate, on the other hand, allows organizations to focus on transformation at the core, which works best for companies who are looking for ways to build on the existing product or brand, and whose senior leadership is committed to a long-term transformation for the organization and its technology platform. Most often, inoculation allows an existing team or project group to work with more autonomy, but doesn’t take the form of a new, high profile innovation unit or entity. Capital One, for example, is transforming its core by re-organizing around customer journeys.
Sometimes, the right approach for a company is to start with incubate and later move to inoculate. Incubation engenders a learning mindset that enables the build out of necessary capabilities which can then be scaled to transform the core. Indeed, this is the combined approach Wipro used when tackling its own transformation. Wipro Digital was launched to incubate Wipro’s digital transformation. With its success, Wipro has begun to systematically adopt the new way of working across the core business thereby, changing, inoculating and scaling its digital initiatives.
Identifying the Right Approach: Ask yourself…
Ensuring Success: To activate effectively…
Executive sponsorship, long-term commitment and patience are the foundation for any successful transformation approach, and it is up to its leaders to determine how best to balance incubation and inoculation to enable organizations to continuously deliver digital products and services and make enterprise-wide transformation happen.
© 2021 Wipro Limited |
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© 2021 Wipro Limited |
Pharmaceutical & Life Sciences