Sir Isaac Newton and Digital Transformation

Digital Transformation is shaping the modern world. Finally, the Global Village (Marshall McLuhan) is taking shape. New companies and new products and services are created and reach the mass market in an unprecedented speed. How can large corporations — the focus of this analysis via Porter’s Five Forces — deal with this power? How can SAP offerings address the subject?

The Dynamo

Traditional barriers for market protection became an inefficient reaction once disruptive products ignored these shields. Adapting Newton’s Third Law — for every action, there is an equal and opposite reaction — each threat should be fought with an opposite force generated by a permanent and constant state of innovation. It should not be only a reactive behaviour but dynamic and proactive. In other words: innovation should be combated with innovation!

For every innovation threat, an equal opposite reaction should be created

SAP and Digital Transformation

In terms of technology and business SAP and its partners are in a position to help companies on the journey to digital transformation in two ways:

New Products: SAP and Partners can contribute to new product developments e.g. Nespresso from Nestle, or improvement of existing ones. In both cases, insights can come from social media, for example, or from real-time analytics and Big Data.

New Processes: a disruptive idea might not be related to a product or service or even to a new company such as Uber or Airbnb. The innovation can be triggered by reviewing or creating new and more efficient processes; allowing, for instance, strategic and management teams access to information not available before.

Finally, a third component, beyond technology and business, should be presented: listening to our clients. By doing so we have a long journey ahead… With our clients on board.

Read more about the unlikely impact famous historical figures have had on modern SAP innovations by reading our blog about Isambard Brunel- the first design thinker.