book.chapter Digital business nervous system

A Digital Nervous System (DNS) is a crucial link between a company's strategic thinking and its regular business activities, including operations, knowledge, and commerce. It comprises the necessary hardware, software, and human insight to gather and respond to information effectively. An efficient DNS allows managers to make decisions based on facts rather than intuition. It distributes information to the level where meaningful decisions can be made, often at the middle management level. With enhanced information, sales and marketing staff can transition from merely closing transactions to becoming better business managers. A world-class DNS can set a company apart from its competitors. The ability to collect, manage, and leverage timely information is a strong, sustainable advantage. The unimpeded flow of information is the lifeblood of any company, enabling the maximization of employee effectiveness and understanding exactly what customers want. The effectiveness of gathering, analyzing, and acting upon this information determines the long-term viability of any business. As Bill Gates predicted, business has changed more in the past decade than the previous fifty, primarily due to the flow of digital information. Despite being in the Information Age for about thirty years, most business information still moves by paper, leaving the process of connecting buyers and sellers largely unchanged. While many companies are digitizing old processes, very few are utilizing technology for new, radically improved functions that fully benefit from employee capabilities and the speed needed to compete today. Most businesses are unaware that the tools to enable these changes are now widely available. Although most business problems are information problems, almost no one is using information well. Gates also predicted that if quality and reengineering defined the 1980s and 1990s respectively, velocity would characterize the 2000s. This velocity applies to how quickly business itself will be conducted and information accessed, in turn altering consumer lifestyles and expectations. Both quality improvements and business process enhancements will happen far faster. The successful companies of the next decade will be those that use digital tools to reinvent the way they work. These companies will make decisions quickly, act efficiently, and connect with customers in positive ways. Adopting these tools will put companies on the leading edge of sweeping change that will revolutionize business. A DNS will enable operating at the speed of thought - the key to success in the 21st century. Creating a DNS does not require huge new investments in technology. Most companies already have the essential components. The steps are: develop an ideal picture of the business information needed to understand the market and competition, identify key questions whose answers would influence marketplace actions, and collaborate with IT teams to build real-time systems that answer those questions. If this digital transformation is not undertaken, competitors will surely do so instead. As Carl Sagan once said, the most amazing discoveries will be those we cannot yet foresee. And as Jack Welch of General Electric stated, change brings opportunity, so organizations must get energized rather than paralyzed. The future is full of exciting possibilities for companies that harness digital tools to work smarter, faster, and better.