The biggest change I've found in the United States since
returning from six years in China is the digital transformation of everything.
I find often that internet transactions are uncoordinated and data entry is tedious and repetitive. It feels like we are in the Model-T era of digital - it works with a hand crank and the pedals
stick. But then, in the middle of a Chicago snowstorm with no taxis in sight, I
call Uber. A car arrives in 3 minutes. It's miraculous.
Digital leadership is powerful: With Uber achieving a
market value of $41 billion, joining Airbnb, Alibaba, and 71 other companies in
the billion dollar start-up club, companies are asking what is driving these
valuations and how can they benefit from these new digital and network based
business models? Odgers Berndtson has a great track record in this area. We
placed many digital leaders for financial services, technology and health care
companies. Last week we sponsored Barry Libert, Digital Expert, CEO of
OpenMatters and Senior Fellow at The Wharton School at a lunch in New York to talk about digital
Companies with leaders
who understand the digital marketplace have higher market valuations and stock
performance. Business leaders at manufacturing companies will need a
combination of inventive thinking, collaborative actions and technical fluency
to see the way forward and allow the industrial internet to reach its full
potential according to Barry.
|Companies ranked by Price/Revenues Ratio|
“Network Orchestrators” Beating the Band: Libert divides companies into four business models: Asset
Builders, Service Providers, Technology Creators and Network Orchestrators.
Over the last 40 years, Network Orchestrators have gained ascendency in market
valuation and stock performance over Asset Builders and Service Providers.
Network Orchestrators build value by delivering outcomes to
customers, not on delivering products and services. A key to their success is
collaborating across business partners. Uber, Zappos and Airbnb are examples of
companies which deliver value to customers by "orchestrating"
collaboration across suppliers, often at negligible marginal cost.
"Anyone Can Do Anything": Digital
transformation will require business leaders to shift from a focus on products
and services to business outcomes. But what does that mean for an industrial
company? B-to-B companies have a greater challenge choosing which kind of
investment will allow them to take the best advantage of the "internet of
things." Network Orchestrators "presume people will do the right
thing," Libert said, "because anyone can do anything." To drive
profit and value, industrial leaders will need to create a culture that
embraces experimentation, learning and collaboration while exercising good
Are you grappling with digital strategy in your organization? Leading edge industrial companies like yours use technology and innovation to meet customer needs globally. Odgers Berndtson has a lot of experience helping companies find great digital leaders to help them drive growth, revenues, profit and value.
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