Partner Article

Innovate, modernise and change

In the last few weeks UK stalwart of the high street Argos has laid out a bold and determined five-year vision for its future. The famous catalogue is to be phased out and increasingly Argos will move its business online in a bid to compete with its online competitors. Argos is proof that in business there are no sacred cows. To compete one must be prepared to innovate, modernise and change.

But the ability to change is one of the biggest challenges which I have seen many organisations struggle with over the years.

Businesses often have fixed attitudes about what they do and about the type of company they are. In some cases they refuse to re-evaluate their proposition which is ultimately to their detriment. For example, a retailer cannot just call themselves a retailer anymore; they must be a technology company attuned to the potential that IT has to drive and innovate the way they engage with their customers and suppliers. Similarly a travel agent cannot just be a travel agent; they must be a database expert able to manage huge volumes of data and information, tailoring it to their client’s needs.

The need to drive growth in a double-dip recession, as well as respond to evolving customer demands, is a catalyst for the boardrooms of many enterprises to consider how technology can, and has, changed their business model.

By shifting its focus from the traditional catalogue model and to drive its online business, Argos has brought with it a breath of fresh air. It has recognised that many consumers are no longer willing to stand in a queue, instead preferring to place orders online or through mobile/tablet apps at their convenience. And whilst it wouldn’t be fair to say the high street is dead, retailers who fail to get their multi-channel, online operations up to speed may as well be. By understanding the changing habits and demands amongst consumers, Argos has recognised that it needs to be a 24-hour business which meets today’s retail requirements. People want to shop from their beds, their desks and their baths! If they can get that service elsewhere, they will.

The world is changing and technology is at the heart of this, driving innovation at every corner.

However, not all businesses can react quickly enough to this change. Equally so, not all businesses have the vision and insight to see how technology can change the way they work. One of the other challenges I have encountered is the inability for the C-Suite to embrace change.

There is a worrying amount of ‘digital illiteracy’ across UK senior exec boardrooms. According to a recent report by CA Technologies (The Future Role of the CIO), 80% of CIOs believe that failure or resistance to understand how digital technology can be utilised amongst senior teams is hampering business growth.

In an economy that continues to dip in and out of recession, none of the above is sustainable or acceptable. It’s time to start thinking like Argos – throw off the shackles of the past and embrace your inner technologist!

This was posted in Bdaily's Members' News section by Jacqueline de Rojas .