In the rapidly changing digital economy, you can’t succeed by merely tweaking management practices that led to past success. And yet, while many leaders and managers recognize the threat from digital–and the potential opportunity–they lack a common language and compelling framework to help them assess it and guide them in responding.
Digital technology is changing the way credit unions work and the way members expect them to work. Many opportunities exist to profit from digital business models. But building radically new ones can be expensive, difficult, and highly risky. There are many opportunities to do something perhaps less revolutionary, yet still highly valuable – evolving your business models using digital technology.
While many credit union leaders understand the potential opportunities of digital technologies—as well as the possible threats—they lack a common language or a compelling framework to help them assess it, and more importantly, to direct them to transform their organizations. They simply don’t know how to think about their digital business model.
Peter Weill and Stephanie L. Woerner’s new book, “What’s Your Digital Business Model?”, provides a strategic framework for thinking about these issues. Peter is a Senior Research Scientist and Chair of the Center for Information Systems Research at the MIT Sloan School of Management. Stephanie is also Research Scientist at the same institution with a specialty focusing on how companies manage organizational change caused by digital disruption. Based on years of study at the MIT Center for Information Systems Research (CISR), the authors find that digitization is moving companies’ business models on two dimensions: from value chains to digital ecosystems, and from a fuzzy understanding of the needs of end customers to a sharper one. Looking at these dimensions in combination results in four distinct business models, each with different capabilities. The book then sets out six driving questions, in separate chapters, that help managers and executives clarify where they are currently in an increasingly digital business landscape and highlight what’s needed to move toward a higher-value digital business model.
The book is optimistic about the possibility of large organizations successfully addressing these current challenges and enabling them to reposition themselves into a rapidly changing future. A solid roadmap for credit unions to achieve digital transformation, and a required read for every executive.