Digital Culture has to manage commercial Risk - Change methodology enables the organization to be ready and able to work with a new or changed set of processes enabled by new technology and business processes, thereby realizing the benefits of the transformation. The approach helps the impacted organization to clearly understand the need for change and the outcomes of the change, and ultimately ensures that the organization possesses the capabilities and motivation to make and sustain the change. Additionally, there is a large focus on transferring knowledge to the organization, as well as developing methods and content for ongoing support of job performance.
The activities in this thread can help accelerate stakeholder adoption of the changes and reduce the performance dip typically seen on large-scale business transformations of the size and complexity to drive management of commercial risk. “Today, the costs of inaction almost always exceed the costs of action.” Making a culture less risk averse is by no means an insurmountable task. To boost risk taking in their companies, executives need to change their mindsets.
Dr. John Halamka, chief information officer of the Boston health care provider Beth Israel Deaconess Medical Center, says that leaders must acknowledge failure as a prerequisite for success. “Failure is a valid outcome,” he says. “Wearable computing is great, but Google Glass wearable computing devices turned out not to be for us right now. We may discover that patients love the Apple Watch wrist-wearable device and it becomes a platform.
It’s hard to know. But even if it doesn’t, it’s OK.” In the research paper, “Strategy, not technology drives digital transformation”, Gerald C Kane, Doug Palmer, et all, in MIT SMR 2015, write, “Phil Simon, author of several books on how technology impacts business, sees risk aversion as a serious impediment that plagues many established companies. “For every Google, Amazon or Facebook taking major risks, hundreds of large companies are still playing it safe,” he says. “Cisco CEO John Chambers echoes the sentiment. “We began working on the Internet of everything more than seven years ago,” he comments. “The market wasn’t ready for it. In that instance, we had the courage to keep going without overinvesting to the point where we were betting the company on it.”
But it would be a mistake to suggest that only the mindset of leaders drives aversion to risk. Employees may fear taking risks as much as their managers do. Encouraging employees to be bolder is especially important in digital business transformations.
To draw employees into the fold, businesses may have to take deliberate actions”.