nrc.nl
Dual Transformation: Optimizing Today's Business While Building Tomorrow's
Business consultant Scott Anthony advocates "dual transformation," a strategy where companies simultaneously optimize current operations and build future ventures, as exemplified by Netflix's shift to streaming and Amazon's creation of AWS, leveraging existing capabilities for competitive advantage.
- What challenges might companies encounter when attempting to implement a dual transformation strategy, and what measures can mitigate these risks?
- Companies must actively seek synergies between present and future ventures. Companies successfully employing this dual transformation strategy will gain a competitive edge by uniquely combining existing expertise with new market opportunities, paving the way for sustainable growth and innovation.
- How can businesses effectively balance optimizing current operations with developing future ventures to ensure both immediate profitability and long-term growth?
- Dual transformation," a strategy advised by Scott Anthony, involves simultaneously optimizing current operations (A) and developing future ventures (B). Netflix transitioned from DVD rentals to streaming, illustrating successful optimization within an existing market. Amazon Web Services (AWS), spun off from Amazon, showcases building a separate, profitable future business.
- What specific examples highlight the successful implementation of dual transformation, demonstrating the transfer of core competencies from existing businesses to new ventures?
- Anthony emphasizes treating transformations A and B as distinct entities, even forming separate teams within large companies. The key connection lies in leveraging existing capabilities; Fujifilm's expertise in collagen, a film component, facilitated their successful expansion into cosmetics.
Cognitive Concepts
Framing Bias
The article frames dual transformation as a relatively straightforward process, emphasizing the success stories of Netflix and Amazon. While these are compelling examples, the article doesn't sufficiently address the potential challenges and complexities involved in implementing such a strategy. The positive framing might lead readers to underestimate the difficulties.
Language Bias
The language used is generally neutral and objective, although terms like 'intelligent connection' and 'unique capabilities' could be considered slightly loaded. More precise language such as 'strategic connection' and 'existing competencies' might be preferable for greater neutrality.
Bias by Omission
The article focuses primarily on the advice of Scott Anthony and provides limited alternative perspectives on dual transformation strategies for businesses. Other approaches or viewpoints are not explored, potentially limiting a reader's understanding of the full range of options available.
False Dichotomy
The article presents a somewhat simplified 'eitheor' dichotomy between optimizing the current business ('run') and building the future business ('change'). While acknowledging the need to balance both, it doesn't fully explore the complexities or potential overlaps between these two processes. The notion of separate transformations may not be universally applicable, especially for smaller businesses.
Sustainable Development Goals
The article discusses strategies for business transformation, focusing on optimizing existing operations (Transformation A) and creating future businesses (Transformation B). This directly contributes to decent work and economic growth by promoting innovation, efficiency, and the creation of new economic opportunities. The examples of Netflix and Amazon Web Services illustrate how adapting to market changes and creating new ventures can lead to sustained economic growth and job creation.