Business cartoon showing a businessman with his therapist and saying, "My profession has probably been transformed again just since we started this session."
Business cartoon showing a businessman with his therapist and saying, “My profession has probably been transformed again just since we started this session.”
The Business digital transformation has become an inevitable thing currently for every company. In today’s world, if you want to win as a professional or a businessman, you need to embrace digital transformation of your business. For understanding the transformation of businesses you need to first understand the history of evolution.
A short rewind to history of businesses….
The last 100+ years, the corporations have become an increasingly dominant part of economic life. But, what about the times before? Humans have been in existence for 1000s of years, and no matter in whatever phase of life upgradations they were in, the developments and corrections in the social/economic systems never stopped. Though, there were several factors contributing to the economy of any country (or state) during those times, but the primary contributors were always the traders, self-employed, and home-based businesses. Exchange of commodities and food items were prevalent way before the money minting machines were even invented and became a proxy exchange of value. In the 17th century, Adam Smith came up with his revolutionary theories of economic, especially, on the “Division of Labor”. This theory slowly encouraged people with different skill-sets get organized under one roof, work on producing products/services in an organized fashion, and start selling them to the potential markets. Out of the total output, the investors used to share profits whereas the skilled workers used to share the income.

Definition of Corporation….
According to the dictionary, Merriam-Webster , a corporation is “a body formed and authorized by law to act as a single person although constituted by one or more persons and legally endowed with various rights and duties including the capacity of succession”

Corporations exist as a product of corporate law, and their rules balance the interests of their stakeholders: the management who operates the corporation; creditors who loan their goods, services or money; shareholders who invest their capital; the employees who contribute their labor; and the clients they serve.

Corporation as Social Entity and the responsibility and rights of individuals…
As explained above, it is clear that a corporation, as a general misconception, is not an asset or commodity or wealth owned by an individual like a CEO, Chairman or President. In general, employees tend to assume that a corporation is owned by these people. This is completely a wrong attitude and illogical thinking and is the single most reason for the productivity issues in the company. A corporation is definitely a social entity, a person by itself according to the corporate/administrative laws of a country where it operates from. The main head of any corporation whether a president or chairman or CEO takes responsibility of running it on behalf of its beneficiaries (employees, investors, customers, and suppliers). Although there is a general perception around that a company is owned by the head, the reality is that the head only owns the share of profit whatever it may come after overall account calculations, settlements and statements. As a matter of fact, it is an incorrect & ambiguous statement to declare that someone owns a corporation as it is legally not possible, so the head of a corporation simply can’t own it. Probably, a government is the one who can claim that it owns it. Each of the stakeholders for example employees, consultants, suppliers, customers, shareholders have certain specific roles and responsibilities to play. Their risks and stakes bound by the role they play. And each one of them is part of the newer world now with digitally transformed day-day activities. In the current digital world of social media, we are experiencing a lot of transformation that pushes the envelope of the stakeholders to perform their job role very differently that they have been performing till now. You as a professional or a businessman should understand and adopt yourself to equip.
Taking part and contributing to the organization’s growth in the transformed world….
It should be carefully noted that employees and consultants are the ones who get paid from the revenue of a corporation, not from the profit. So, they are the principal and primary beneficiary of the corporation. Their risk is also limited to the roles they play. So, one should be clear that the more they contribute toward their corporation’s growth, faster they grow in their career being the first beneficiary. An employee or a consultant who tries to get more benefit or engage in unreasonable negotiations does injustice to other employees and consultants first and then to the customers, suppliers and shareholders. So, a responsible employee/consultant should only engage in positive dialogue with the corporation managers (who are also employees); show their commitment to the growth of the corporation and then ask for the benefits. Basically remember 4Rs
  • Responsibilities
  • Restrictions
  • Rights
  • Rewards
I.e. perform your responsibilities within the restrictions of your role and exercise your rights, you will be automatically rewarded well. Part of the reason many people are finding themselves in a conflict with the responsibility side of their job role is the “digital transformation”. What was expected out of you in the past is completely different than of today. Who forced it? Not your boss or colleague. It is the market that re-defined everything. The customers are more mobile than ever. When you don’t understand their behavior, you will not be able to serve their needs. If you don’t have enough products and solutions in hand that helps you to catch up with them, you will miserably fail in your job roles although you are a good employee.  The restrictions on the other hand also transforming quickly. The restrictions, basically the controls parameters or barometers are no more the old way parameters. These restrictions have become very dynamic and not enforced by your boss anymore. The market defines it, your customers define it, and most importantly they redefine in an incredible pace that you need to be traveling through them in their own dynamics. Your internal business processes should respond to these dynamic control/restriction parameters. For achieving that you need a better FACADE architecture for your business that connects you with your internal processes dynamically.
Pie Making….
There are two kinds of people in the world; the ones who make pie and the others who eat it. If the size of the pie is small, then you should think of cooking more pie and take your share out of it instead of fighting for the small pie which is not enough for everyone to eat. If a stakeholder (employee, consultant, shareholder, supplier, client etc) understands this well, they will engage themselves only in making more pie (i.e. contribute to increasing revenue and profit of the organization) and then ask for their share out of it. Most problems of the economy today is attributed by the transformation of the world. Some of them are orchestrated, some of them are natural. But as a stake-holder your job is to understand the transformation, start working on aligning yourself with the industry and customer, equip yourself with more tools & knowledge that will take you through this transformational change. The world will always reward the pie makers more. In digitally transformed world, you cannot make a pie the old way. You need modern processes, automation, just-in-time methodologies, services-oriented approach, respond-to-deliver strategy etc.
Since a business is a system by itself, the output depends on better Inputs and the processes within itself. Every system grows & improves itself over a period of time by correcting the mistakes/errors. So, everyone should contribute to the bring in better inputs and improved business processes in order to increase the revenue and the profit finally. These business processes cannot work the traditional slow to respond way. They should be more intelligent, more robotic and quick to respond to varying levels of customers. Rewards will await you automatically!
Want to learn more, come on board with us in Business digital Transformation Guild! Right now we are offering 3 months free membership. You can use code: 3MONTHSFREE when you sign-up.
Suresh Kannan
President & Chairman,
Business Digital Transformation Guild
Email: suresh.kannan@transformationguild.org

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