From Products to Customers: Delivering Business Transformation At Scale
December 13, 2024

From Products to Customers: Delivering Business Transformation At Scale

Transformation is a journey, not a destination – so how to transform at scale? GigaOm Field CTO Darrel Kent and Whit Walters explore the nuances of business and digital transformation, sharing their thoughts on business scaling, value-driven growth and leadership in a rapidly evolving world.

Whit: Darrell, transformation is a very common word today – digital transformation, business transformation. It’s hard enough on a project level, but for a business that wants to grow, where do you start?

Darrell: you’re right. Transformation has become one of those overused buzzwords, but at its core is fundamental change. What is digital transformation? What is business transformation? It translates these big concepts into value-based disciplines—disciplines that create real impact.

Whit: This sounds very convincing. Can you give us an example of a real-life situation?

Darrell: certainly. Imagine a company’s goal is to grow revenue from 1 billion to 2 billion to 5 billion. This isn’t just a numbers game; it’s a journey of transformation. To reach 1 billion, you can do it by focusing on product excellence. But you can’t reach 2 billion with products alone – you need more. You need to rethink your approach to scaling—whether through innovation, operations, or culture. Finance needs to invest strategically, sales needs to evolve, and leadership must align every decision with long-term goals.

Whit: It’s a fascinating transformation. So, scaling isn’t just about selling more products?

Darrell: Exactly. Scaling requires changes in how value is delivered. For example, moving from transactional sales to advisory relationships. It’s about operational efficiency, customer experience and innovation, working together to create value at scale. I call these value-based disciplines.

Whit: Let’s break it down further. You mentioned great products, great operations and great customers. How do these concepts construct each other?

Darrell: Very good question. Product excellence is the foundation. When building a company, your product needs to solve a real problem and do it extremely well. That’s how you reach your first milestone, like the $1 billion mark. But to scale, you can’t rely solely on product. This is where operational excellence comes in.

Whit: and customer excellence? Where does this fit in?

Darrell: Exceptional customer service takes it to a new level beyond operational excellence. Again, what gets you to $2 billion doesn’t get you beyond that number. You have to change again. It’s not just about creating a great product or running smoothly. It’s about truly understanding and anticipating your customers’ needs. Companies that master customer service excellence create loyalty and advocacy. They don’t just respond to customer feedback; They proactively shape the customer experience. This is where long-term growth occurs and is the hallmark of a company that scales successfully.

Whit: This makes sense. So, is this a progression – starting with product, moving to operations, and finally everything being customer-centric?

Darrell: Exactly. Think of it like a ladder. Each step builds on the previous one. You need great products to get started, operational excellence to scale effectively, and great customers to ensure long-term growth and market leadership. These are not isolated stages – they are interconnected. Failure in one area can disrupt the entire system.

Whit: This is a powerful point. What role does leadership play in this transformation?

Darrell: Leadership is everything. The first thing to understand is that transformation is not optional—it is survival. Leaders must champion change, align organizational culture with its strategy, and invest in the right areas. For example, what are the chief financial officer’s priorities? What technologies or processes does the COO implement? It all takes a joint effort.

Whit: This is a powerful point. What would you say to leaders who are hesitant to embark on such an arduous journey?

Darrell: I would tell them: transformation is not just about survival; This is about future prosperity. This is what Simon Sinek calls the “long game.” Companies that follow these principles—aligning value creation with their business strategies—will not only grow, but set the pace for the industry.

Whit: Do you have any final thoughts on the transformation of the organization itself?

Darrell: Focus on value. Whether it’s your customers, employees or stakeholders, every transformation effort should come back to delivering value. Remember, this is a journey. You don’t have to become perfect overnight, but you have to start.

Whit: Thank you, Darrell. Your insights are invaluable.



2024-12-09 11:27:22

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