Nearly every credit union was started before the internet was invented, and that creates a challenge: how to transform to compete in a digital economy.
This is the leadership and executive challenge examined by Columbia Business School faculty member and THINK 17 speaker David Rogers in his insightful book “The Digital Transformation Playbook.” Rogers explains that digital transformation is not about upgrading your technology, but digitally enhancing and upgrading your strategic thinking. To prosper in the digital age, businesses need to rethink their underlying assumptions in five domains of strategy – customers, competition, data, innovation and value.
Customers – Credit unions need to shift from mass markets and broadcast messaging to a dynamic two-way interaction with customers, requiring brands to create omnichannel experiences.
Competition – Credit unions need to reimagine competition, shifting away from zero-sum-game thinking and instead thinking in terms of frenemies – competitors that can be critical partners at the same time.
Data – Credit unions traditionally used data to optimize processes. In today’s world, data is becoming a key strategic asset, with the urgent need to integrate data to provide a complete picture of customers and unlock new sources of value.
Innovation – Leadership must shift in order to move innovation towards a process of constant and rapid experimentation.
Value – In the old days of business, your work was about creating value for your credit union. In today’s environment, your credit union must be ready to adapt early, and to continually re-think how it creates value for its members.
“The Digital Transformation Playbook” was written to help legacy companies like credit unions make use of digital tools, to compete with upstarts and to innovate faster. With a new awareness of the digital environment, credit unions can ride the wave of digital transformation into a new world of long-term innovation. Innovation has always been around. The difference now is the pace of innovation created by technology.
One thing is clear: No business is doomed to extinction. With the right strategies and leadership, any company can adapt to grow for the digital future