Innovation in your organization — that can scale the path of transformation in the digital world — doesn’t come without hurdles. Change doesn’t come without resistance, especially in larger organizations.
This common theme of digital transformation through disruption of stagnant business models was a common one at the Evanta CIO Executive Summit in Minneapolis. Opening keynote speaker, Suzanne Vautrinot, Retired Commander & Major General, U.S. Air Force, kicked off the summit with her expertise and experience in leading transformation. Harping on her experience, she joked, “This may surprise some people, but the government doesn’t like rapid change — they prefer more of a melting-glacier approach.”
Vautrinot explained that organizational change is about finding the “yes” among a sea of “no’s” is key in moving forward to sustainable, effective transformation. By jumping over hurdles — or “no’s,” — we can find those “yes” moments that lead to inspiration. Being a leader in the technology space is about removing barriers and creating a path to transformation.
Throughout the day, the emphasis on the critical need for building a digitally disruptive organization was prevalent in every session. Sonny Hashmi, Managing Director at Box, explained that business models must be built around the ability to scale in the digital world. We all must shift our mindset and think about our products, services, processes — along with new skill sets — through a digital lens to be able to lead and compete in the IT space.
Hashmi examined the Blockbuster vs. Netflix business model. Netflix disrupted Blockbuster’s business model — one that generated most of its revenue through late fees. How? By building a modern business model with digital transformation at its core that reached the same market but had zero late fees and was available to the demographic through a digital platform. This enabled the market to access everything blockbuster offered — and more — through any Wi-Fi enabled device at a fraction of the cost.
Netflix’s business model is a fantastic example of one built around digital disruption while remaining adaptable and easy to scale. For example, as more providers caught on to the Netflix business model and started to mimic the streaming service (Amazon Prime, Hulu, HBO Go), Netflix shifted and adapted to the new market and regained their competitive advantage without ever changing their model.
We’ve seen this most recently with their increase in original content that can’t be viewed anywhere else. Players like Blockbuster never stood a chance — simply based on their lack of a digitally-focused, modern business model.
Put simply: you can’t just add software on top of a business model that has shifted or aged at its core. It just won’t work.
We couldn’t have said it better ourselves. At 128 Technology, we believe you can run your network with greater agility, performance, and speed at a fraction of the cost — and we’re doing it with a business model based on digital transformation and innovation.
Rather than focusing on innovation at the digital core of networking, we’ve spent the past twenty or so years adding complexity on top of the network. Middleboxes, firewalls, expensive MPLS tunnels, and more have been stacked on top of routers, leading to a slower, more expensive, less secure network that was not built to handle the traffic and applications of today’s Internet.
As Hashmi explained in his speech, businesses will undergo a shift about every eight years. The very things that made an organization successful at first (Blockbuster’s late fees) are what could hold you back from growth and the chance to compete in the future (Netflix).
Looking back on the networking industry and, more specifically, routing, not a whole lot has changed in the past 20 years, let alone eight. We’re long overdue for a massive shift in how we think and what our products and services are capable of. 128 Technology is taking the lead in overcoming those “no” barriers and creating the digital path to transformation in networking.