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Mode 1-2-3: A strategic blueprint for securing enterprise competitiveness

Mode 1-2-3: A strategic blueprint for securing enterprise competitiveness
C Vijayakumar - President & CEO, HCL Technologies | January 3, 2017
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Businesses across industries stand at an inflection point today due to far reaching disruption fueled by what I call the three elephants in the room: Automation, Cloud and Digitalization. The momentum of change, fueled by an explosion of data and connected devices, software defined infrastructure, cloud-enabled as-a-service and experience & outcome driven digital platforms, is forcing enterprises to reimagine their businesses and rewire it for success in the new world.

The Mode 1-2-3 Strategy helps in this rewiring to future proof your business, by focusing a concurrent 3-point spotlight on the existing core of your business, growth areas as well as the future.  As detailed below, each of the three modes have a distinct outcome and growth potential.

Mode 1-2-3 will future proof businesses, with a 3-point spotlight on the existing core, growth areas and the future

Strengthening your core

Mode 1 is all about sustaining leadership position and gaining market share in your existing product or service offering. It revolves around strengthening your existing core, be it through forging expansion into new markets or by digging further into existing markets. And this necessitates a sharp focus on your most powerful differentiators today. The emergence of new technologies does not necessarily mean that your existing products or services are losing relevance. It implies adoption of and adapting to new technologies to make them even more relevant.

The emergence of new technologies does not mean the end of your existing products or services

Your immediate growth opportunity

Mode 2 is your immediate high growth opportunity. This is where you can step up the game, realizing high acceleration and high growth business opportunities at the inflection points in your industry. This involves close study of the direction in which customer preferences are headed, the resultant changes in market landscape and potential impact on your business.  And based on this review, making the strategic investments to move urgently to capitalize on adjacent opportunities. As these are usually nascent emerging markets, there are unlikely to be any clear leaders, thereby offering quick growth potential by building strong organic and inorganic capabilities in this area. This is the moment to pivot, and transition to new business models by developing new offerings in exciting new areas for a leadership position. 

 Future proofing your business

Mode 3 is about looking beyond tomorrow and aligning with the trends shaping the future. The formation of ecosystems is evident across the value chain and across industries. Therefore, rather than a ground up approach, Mode 3 would entail future proofing your business by making the required business model changes and building innovative alliances within an ecosystem of strategic partners. A successful Mode 3 approach connects the dots between your existing strengths, your focus points tomorrow and the shifting canvas in which you operate to stay ahead in the future.

 While Mode 1 may provide the lion’s share of your revenue today, by taking advantage of your unique differentiators, Mode 2 would help you fuel growth tomorrow, while Mode 3 will build the necessary infrastructure to keep the momentum undiminished. What this demands is a parallel focus on the internal environment, to sharpen the focus on existing strengths, as well as the external environment to take timely steps to leverage the powerful technologies available to build on potential competitive advantages at the key inflection points in the industry.

 As Deloitte pointed out in their 2017 outlook, “Ultimately, the warp speed with which the technology space is changing makes it nearly impossible to anticipate every new development. But there is little doubt that technology’s integral role in nearly every aspect of business and life will keep those developments coming.” To keep track of these fast moving pieces and extract their relevance to the growth of your business, a strong technology partner can help unclutter the rubble for a clearer way forward.

 At HCL, we leverage the Mode 1-2-3 strategy to help our clients reimagine their business in the digital age. Moving from traditional efficiency oriented solutions to business outcome oriented conversations, we’re helping customers across industries decode the new world and help navigate their way through new technologies like Internet of Things, Cloud, Software-Defined Infrastructure, Artificial Intelligence, Machine Learning, Robotics and more.

The Mode 1-2-3 strategy will help customers across industries navigate the new digital age

Most importantly, we’re building success on this moving canvas through a whole new collaborative model, putting our skin in the game and getting rewarded for the outcome. As Oliver Marks described what he termed as Collaboration 2.0: “HCL's modern approaches to digital business arguably render old outsourcing models to the history books…”

In a world built on partnerships, Mode 1-2-3 is based on taking three simple steps together to carve a successful path to secure your greatest strengths today, draw the best impact from neighbouring areas of advantage tomorrow, and build a supple path to future-proof your leadership till day  after tomorrow. 


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