The Digital Revolution and What Happened to Shrink?
Tech Sheets - The High Tech Blog
Posted by Ryan C. Jones on February 4, 2012
The Digital Revolution
Over the last several years I’ve had the fortunate opportunity to assist some great Technology companies make what I refer to as their Digital Transformation. I use the term transformation specifically, as I view the process of going digital not only being about great new technology solutions, but also about developing new go-to-market strategies, changing core business operations and engaging differently with customers, partners and employees to gain the adoption required to make the new digital channel successful. With that as the backdrop, I hope my Tech Digital postings are informative, helpful and at a minimum resonate with the challenges you may be facing with your own transformation.
What happened to shrink?
Are the days of shrink-wrapped (‘shrink’) software behind us? For the most part I’d say yes, particularly in the enterprise and upper end of the SMB marketplace. Why?... It’s simple – the internet enables on demand access and distribution of the media that consumers want and reduces the operating costs that help software companies maintain profitability. At least that part is simple. What isn’t as simple is how a shrink focused software company makes the shift to becoming a digital media provider. The challenges in making that shift manifest at a couple different levels. First, a new go-to-market strategy needs to be developed to determine just how to sell and distribute software to customers online. It also requires a new operating and business model for supporting emerging licensing strategies such as pay per use and software as a service (SaaS). Second, after the new business model is defined it needs to be operationalized. Meaning the business processes and enterprise data for the new digital media operation needs to be changed to align with the new way of doing business, which is often the most challenging part of the transformation. Lastly, there inevitably comes the need for new technologies and going digital is likely to result in significant set of new technologies that require complex integration with your company’s existing system and data architectures. So before getting started, realize there are plenty of challenges to overcome while moving from a CD burning, shrink wrap culture to a digital media company and should not be taken lightly. I’ve had the privilege to work with several large software companies on this journey and can attest first hand that they are complex, but if done effectively they can be truly transformative for the organization.
Feel free to share your thoughts on going digital, of if you have first-hand experience with a digital transformation please add your comments.
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