What do all digital leaders have in common? Exponential effectiveness. Explore this theme and how it relates to the Intel Super 7 in a post based on a new paper I wrote with Jason Hoffman, the Head of Product Area Cloud Systems at Ericsson. In the paper, we took the 10 steps of emotional processing and applied them to what we call Future Digital.
The new leaders of the digital world have one thing in common – exponential effectiveness. In business the best metric to measure this is revenue per employee. Apple. Google and Facebook each generate more than USD 1 million per employee.
These companies have operational models that capture an exponential capability increase
but with linear costs and an exponential price decrease, all while maintaining value. They achieve such efficiency by removing what is not necessary and simplifying what must be there. By aggressively standardizing across all facilities, infrastructure, operations and business lines, high revenue per employee statistics become obvious rather than
All studies of digital leaders highlight such positive business results. CapGemini in association with MIT found that digital leaders are on average 26 percent more profitable and have a 12 percent higher market valuation.
The Intel Super 7 have fundamentally changed IT
The end result is to move away from product towards the creation of a platform, whether external, internal or both. The creation of a digital platform enables industrialized unit economics southbound while supporting untethered business model discovery northbound.
In the lead is a group of hyperscale players Intel refers to as the “Super 7”. They realized their core business growth was exponential but the associated costs would increase at the same rate if they followed a traditional path. So these companies stopped buying from the traditional vendors and started building their own infrastructure.
But do you have the engineering staff of a Super 7?
However, few companies have the engineering staff of an “Intel Super 7” and can take open source designs and fully leverage them in a scaled operation today. Most companies are starting with already-running operations and infrastructure and have committed to facility choices that have to be accommodated.
All businesses will follow the same “need” path of the Super 7; handling large amounts of data to deliver better business results and offers. New use cases will appear, driven by large industries, Fortune 500 companies, countries. Emerging applications will put focus on data-centric processing, data governance, response times, scalability, and resilience. More regulation will appear.
The Super 7 have fundamentally changed the IT game and enabled the first true IT hyperscale systems. All companies are on this scaling path whether we embrace it or not, as we digitize and depend more and more on big data we have to understand in order to deliver the future we need.
Explore the 10 steps of digital transformation
Jason Hoffman, the Head of Product Area Cloud Systems at Ericsson, and I recently released our fourth paper together. In this latest paper, Jason and I took the 10 steps of emotional processing and applied them to digital. We write based on the model that change starts with acceptance on the inside that is then reflected on the outside. Here are the 10 steps as applied in the paper:
- Observe - New leaders are behind big changes, using new rules and winning
- Notice - The results are transformational, economically and disruptive
- Recognize - Connected everything creates data to feed machines to augment human effectiveness and reach
- Acknowledge - This forces all companies to ask their “Why” question
- Accept - And then accept the need to change
- Own - Where a new approach to digital is required
- Appreciate - With next generation digital economics
- Understand - New best practices are required
- Process - And safe change requires discipline
- Reframe - Finally accept the need to embrace, accept, and start observing again