Transformation in 3D
The three-horizon framework offers a comprehensive approach for enterprise-wide transformation, simultaneously addressing the dimensions of now, next and beyond, and encompassing every aspect of the organization, including business models, operations, supply chain, talent and digital infrastructure. Call it transformation in 3D.
Companies solve the now by focusing on growth of the existing business, driving efficiencies, and maximizing profitability and shareholder value, through various initiatives such as optimizing and upgrading existing digital infrastructure. Solving the now also means responding to immediate challenges, whether competitive threats, shifting customer preferences or regulatory changes. Leading companies address these challenges through initiatives such as re-designing corporate risk and trust strategy, achieving global scale and full market impact with innovation, or making strategic decisions such as buy vs. build. Now is also the time to consolidate any piecemeal local or functional transformation efforts into an end-to-end business transformation.
The scale of change being experienced in every industry calls for simultaneously exploring the next. Is the future of health about prevention or treatment? Which consumer future are you designing for? And who wins when energy is democratized? These are the kinds of questions that company leaders must explore to identify new business models and opportunities within their sector and across other sectors.
At the same time, company leaders should explore deploying and integrating emerging digital technologies, such as AI, robotics and blockchain throughout the business. Don’t forget that the human is just as important as the digital: explore new talent models and employee experience frameworks to increase diversity, respond to new generational needs, drive inclusiveness and create a true culture of innovation across the organization.
Given the accelerating pace of change, companies can’t stop at thinking about what’s next. They must imagine what’s after what’s next. How will the nature of value creation evolve? How do you enable your organization to continually adapt to a hyperconnected, network-based and superfluid market so that it can thrive long term? What new megatrends will be sparked by the next wave of technology change? What new capabilities and market opportunities will digital transformation create for the enterprise? Imagination and curiosity become crucial attributes. Thomas Friedman observed that when he writes “I don’t think outside the box. I also don’t think inside the box. I think without a box.” Businesses should do the same when considering the beyond.