Juhani Vuorio – Partner Development Manager at Microsoft – introduces a definition for digital transformation. He utilises Geoffrey Moore‘s concept of the Core and Context.
Companies have two main parts – the core and the context. The core makes company to survive and the context is something that you need to have. In order to keep the most of your resources on developing the core, you have to automate the context, out-source the context or buy ready solutions for the context, so that you can develop your core. Digital transformation as a term is best defined as concentrating to your new core. And at the same time outsourcing your context by buying software services or outsourcing some of your functions that is not your core anymore to other people which have that particular function as their own core.
Juhani Vuorio encourages manufacturing companies to find their new core, concentrate on it, and at the same time to minimise the risks of the context. He tells how digitalisation effects on company’s core and context. Listen to Juhani Vuorio’s examples and learn from his tips.
The article was published originally in Friction Free Online Magazine on 31 July 2018.