analysis are replaced by action and short cycles of customer
feedback. Incumbents are used to putting together large
fact bases before they act, and focus on the quarterly cycle,
often rewarding short-term results at the expense of long-
term investment. Doers who excel at tactical execution of
near-term initiatives are celebrated. But now, they must
find a way to complement the dreamers, many of whom
are already in their midst – those who think long-term are
comfortable with the unknown and can manage in an
environment in flux.
Within this context, executives in the working group
posed the question, “Are traditional strategies and
strategy processes even relevant anymore?” The group
discussed an approach that connects “today forward”
and “future back” thinking. Today forward is the term for
using digital technology and management approaches to
make a business better, faster and cheaper today. Future
back is about positioning the company to compete in 10
or even 20 years.
A way to think about this is to envision waves and stepping
stones. In this context, waves are the successive evolutions
a business must go through to move towards the future
it envisions. Stepping stones describe the tactical, near-
term actions that start to move an organization in the right
direction. Stepping stones are not really about making
step-by-step progress; with the current uncertainty, the end
state may not be known. Instead, stepping stones support
progress while allowing for adaptability – it’s hard to know
the best second step until the first has been taken.
The working group’s answer to the question was: Strategy is
still relevant, but it is changing. A new approach to strategy
is required, one that is more flexible, agile and future-
oriented.
Digital departure:
1,000 points of digital light
To make progress in an uncertain environment,
a company needs to take stock of its current position.
The sheer volume of noise generated by digital
technologies threatens to become a distraction. At most
companies, piecemeal digital experiments, sometimes
hundreds of them, are already under way. These “thousand
points of digital light” often lack a clear direction. With no
central control or coordination of them, senior executives
may have limited visibility into where their investment
budgets are being spent.
Taking an inventory of digital initiatives clarifies where
investments are being made, highlighting patterns and
risks to address first. Companies without a coherent digital
strategy often suffer from one or more of these eight early-
stage failure patterns (Figure 2).
Figure 2: Eight early-stage failure patterns
Source: World Economic Forum/Bain & Company
Some companies find they are investing too much in enablers and not enough in developing a new business model,
i.e. “planning to plan”. Others come to recognize that the scattershot approach lacks coherent focus, possibly resulting
in overlapping investments. Frequently, an inventory reveals that not enough thought has been given to scaling digital
initiatives (“pure experimentation”), but also highlights fruitful activity to build on.
8
The Digital Enterprise
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