Here is the definition of digital:

Digital describes electronic technology that generates, stores, and processes data in terms of two states: positive and non-positive. Positive is expressed or represented by the number 1 and non-positive by the number 0. Thus, data transmitted or stored with digital technology is expressed as a string of 0’s and 1’s. Each of these state digits is referred to as a bit (and a string of bits that a computer can address individually as a group is a byte)…

Actually, that is the definition from 2005 – when WhatIs.com last updated it.

Convergence Required? The Road to Innovation

Today – infrastructure, communications, collaboration, mobility, security and more can enter into the organizational digital equation, where much also depends on target markets as certain needs and requirements will vary. Convergence? It’s not in just a simple “merger” of AV and IT – it’s much more than that. Industry manufacturer companies building as providers of a multitude of varied technology solutions and adding more as they go – through acquisitions and partnerships as well – these companies look to continuously get out in front in the constantly evolving technology landscape. For those who continue to provide in their specified niche, the goals are certainly similar in terms of building a market-leading entity. For integrators and other providers to end users, putting together a portfolio of what can be considered trending technologies in UCC, digital signage, control, managed services and more to go along with the everyday integration technology has been messaged as mission critical.

Yet for those who choose the “we’ve been successful doing it this way all along” approach, the tide has already turned – and keeping the lights on now becomes the main goal as numerous industry leaders have stated. I have had conversations with some of them in person as well as on podcasts. They’re not calling for change in the industry – they’re downright demanding it.

 

The Digital Discussion Begins and Continues Through Disruption

According to Connected Futures The Digital Discussion: It Starts in the Boardroom it goes like this:

If organizations want to evolve and survive in this next era of business, they must become digital entities. And they must do it at the speed of light.

And…

…to do this, they must let go of the old way of thinking and old way of doing business. They must embrace change.

Evolve, and keep evolving – the C-Level executive as well as other main decision makers are responsible for the forward movement of an organization as well as leadership in this fast accelerating digital era.

 

According to a June 2015 report by the Global Center for Digital Business Transformation (a joint initiative between Cisco and IMD) called The Digital Vortex:

The impact of digital disruption can best be understood through the construct of a vortex. A vortex exerts a rotational force that draws everything that surrounds it into its center. The Digital Vortex is the inevitable movement of industries toward a “digital center” in which business models, offerings, and value chains are digitized to the maximum extent possible.

Some key insights according to the report:

• Digital disruption has the potential to overturn incumbents (a powerful company that has a large amount of market share) and reshape markets faster than perhaps any force in history.
• An average of roughly four of today’s top 10 incumbents (in terms of market share) in each industry will be displaced by digital disruption in the next five years.
• 43 percent of companies either do not acknowledge the risk of digital disruption, or have not addressed it sufficiently. Nearly a third are taking a “wait and see” approach, in hopes of emulating successful competitors.
• Only 25 percent describe their approach to digital disruption as proactive—willing to disrupt themselves in order to compete.

Two main factors go into determining the difference between digital disruption and traditional competitive dynamics –the velocity of change (note: a good read Ernst & Young: 5 insights for executives) and the high stakes involved. Digital disruptors innovate rapidly, and then use their innovations to gain market share and scale far faster than challengers still clinging to predominantly physical business models.*

 

Innovation, Disruption and the Impact of a Statement

Company executives who haven’t thought this applies could possibly be right, even considering the market they might exist in – but perhaps it’s time to think again. While we usually hear from known industry executives – take a look at some outside of the industry examples.

Airbnb is a marketplace for people to list, discover, and book unique accommodations around the world. The company exists as a provider – without themselves owning a single property. These listed accommodations are through “Hosts” who sign up to list their space, and guests can search on the website as well as an app for accommodations which are listed in the area they will be looking to stay. The company looks to create community through this idea of having others host travelers around the world.

As an entity, Airbnb is fully-driven by their digital online presence through their website, apps and social media.

Aaron Zifkin, Country Manager, Canada at Airbnb:

“Our product lives online, so if we can’t excel at digital innovation, we will fail. Luckily for us, this is at the forefront of our business and we’re always brainstorming ways to make it better for our community.”

Atlassian is well known for their leading chat and file sharing app HipChat. In 2002, founders Scott Farquhar and Mike Cannon-Brookes went against conventional wisdom by launching a successful enterprise software company in Australia – with no sales force.

Their first product, (project and issue tracking software) JIRA, proved – as Atlassian tells it – that if you make a great piece of software, price it right, and make it available to anyone to download from the internet, teams will come. And they’ll build great things with it. And they’ll tell two friends, and so on, and so on. Giving clients the ability to fully work as a team is the driving force behind what they do as a software company.

Mike Cannon-Brookes, co-CEO at Atlassian:

“All companies fit into one of two buckets: either becoming a software company or being disrupted by one. Every industry is being fundamentally altered by software.”

A new breed of accounting firms could potentially help change attitudes toward the usage of numerous technologies, including videoconferencing. One such firm is Canadian-based Xen Accounting, which analyzes one’s current business and recommends (as they say “some pretty nifty”) tech to take your accounting online and turn it entirely paperless.

First and foremost, Xen is a 100% cloud-based, 100% paperless Chartered Accountant firm. They call themselves “cloud accountants” and as they state – they are fully virtual.

Ryan Lanzanis, CPA, CA at Xen Accounting:

“We simply refuse to hold in-person meetings at Xen Accounting, even if the business we’re working with is right down the street.”

I actually had a Twitter exchange with Xen about this (my questioning this) – their response:

 

The Necessary Digital Mindshift 

Thornton May, a columnist for Connected Futures wrote It’s Time for YOU to Write the Book on Digital in which he explains how it’s time, if you’re not there yet, to start writing chapter one of the company’s digital book. May describes a mindset whereby speaking of digital, one might find it helpful to differentiate between little-d-digital – doing old things with new technology, and Big-D-Digital – which involves selecting from the vast and rich amount of today’s technologies to do new and innovative things. You could well consider it strategic business enhancement through digital disruption.