Digital business success will require organisations to take bold actions, including inventing new business models and changing the way they function, according to Gartner, Inc. Gartner predicts that, by 2017, 70 per cent of successful digital business models will rely on deliberately unstable processes designed to shift with customers' needs.

"Many organisations are either beginning, or in the midst of, digital business transformation initiatives," said Julie Short, research director at Gartner. "We expect that only 30 per cent of these efforts will succeed. To be part of that 30 per cent, business and IT leaders must be ready and willing to innovate rapidly from a business model, business process and technology perspective."

As a result of business model innovation, some business processes must become deliberately unstable. Deliberately unstable processes are designed for change and can dynamically adjust to customers' needs. They are vital because they are agile, adaptable and "supermanoeuvrable" as customers' needs shift. They are also competitive differentiators, because they support customer interactions that are unpredictable and require ad hoc decision making to enable larger, more stable processes to continue.

"It's imperative to break away from linear business processes and deploy a spectrum of standardised and variable processes to reap the benefits of digital business," said Ms Short. "The need for this shift is intensified by the introduction of many types of internet-connected 'things' into the business environment. Things like smart machines generate real-time information for other machines. Business processes must be designed for change to enable organisations to exploit this information. Large, stable processes that have no ability to dynamically change according to new information will not enable organisations to deliver on the promise of digital business."

Through 2017, insufficient business process management (BPM) maturity will prevent 80 per cent of organisations from achieving the desired business outcomes from their digital business strategies.

"Deficits in BPM maturity prevent change agents (individuals who lead changes) from delivering game-changing business outcomes from digital business initiatives," said Marc Kerremans, research director at Gartner. "Delivering expected returns from digital business investments requires process reinvention — that is, significant innovation in how products and services are created, priced, distributed and serviced across not just one group, but often across the entire value chain."

Digital business changes the competitive landscape, so that one-time process reinvention is not enough. Organisations must become more resilient, adaptive and creative in order to master and sustain sudden, disruptive changes, as well as longer periods of transition — and even radical transformational changes that will be more frequent, unforeseen, varied and often unavoidable. Because organisations cannot control such changes, they need to sense, recognise and quickly respond to them.

"With adaptive change, the goal is not to try to tackle big change on every front. Rather, the focus is on coping with the external nature of major change and its impact on organisations, cultures, governance, technologies and metrics," said Mr Kerremans. "Change agents will likely need to employ several change response types to advance BPM maturity to the point where traditional business process improvement initiatives can turn into big change initiatives capable of supporting sustainable competitive advantage in a digital world."

More detailed analysis is available in the Gartner report "Predicts 2015: Digital Business Will Drive a Big Change Revolution." The report is available on Gartner's web site at gartner.com/document/2902818

About the Gartner Business Process Management Summit 2015
The Summit will address all of the delegates' business process and change management concerns whether there are new to business process management or have years of experience. The Summit will help them increase adoption of changes, improve collaboration and engagement, but they will also learn how to transition from structured applications to digitalised processes.

About Gartner
Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. We deliver the technology-related insight necessary for our clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, we are the valuable partner to clients in more than 9,100 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, we work with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 6,600 associates, including more than 1,500 research analysts and consultants, and clients in 85 countries.
gartner.com

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