Edge: Value-Driven Digital Transformation
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Read between October 10 - November 25, 2020
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Scaling agility may be a problem, but it’s not as important as the challenges of learning and adapting fast enough.
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Focusing on external customer outcomes and value rather than internal business benefits such as return on investment (ROI) is central to the EDGE message.
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This change means believing that improving customer value is the key driver that will lead to improved ROI. But ROI isn’t the objective; instead, it is a constraint. You
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ROI is a business benefit (internal) but not a measure of customer value (external).
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“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.” —Charles Darwin, English naturalist
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Table 1-1 Changing Fitness Functions Fitness Function Pre-Digital Digital Business Return on investment Customer value Technology Cost/efficiency Speed/adaptability
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“Only 16 percent of respondents say their organizations’ digital transformations have successfully improved performance and also equipped them to sustain change in the long term.” —McKinsey & Company, “Unlocking Success in Digital Transformations,” October 2018
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As George Westerman, principal research scientist with the MIT Sloan Initiative on the Digital Economy, says, “When digital transformation is done right, it’s like a caterpillar turning into a butterfly, but when done wrong, all you have is a really fast caterpillar.”
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This diagram is used by ThoughtWorks staff to illustrate the transition to Tech@Core.
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The fact that these spreadsheet apps often addressed only a single person’s needs, didn’t scale, weren’t maintainable, and created a security risk never crossed the users’
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Agile Manifesto says, “individuals and interactions over process and tools.”17 Having the right people involved in your technology strategy is imperative.
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In a complex environment, following a plan produces the product you intended, just not the product that you need. —Jim Highsmith
Greg  Taffet
when the process goes right what you attend is what you need.