Charting the digital frontier

Part 1 of this book introduces the contemporary business landscape that requires the attention of all companies, government agencies, and non-profit organizations. Our global economy is undergoing rapid and disruptive change driven by digital technologies and digitally enhanced products. This section briefly introduces the concepts behind Lean, Agile, and VSM practices in a digital context.

Understanding the digital economy’s landscape

The concept of the digital economy is more than just a trend. It’s a new business paradigm. The term digital economy came into use in the 1990s and was the subject of Don Tapscott’s 1995 book, The Digital Economy: Promise and Peril in the Age of Networked Intelligence.1 As digital computing technologies and the internet have evolved, they’ve significantly transformed how businesses operate, particularly in eBusiness and eCommerce. Today, the lines between digital and traditional economies are increasingly blurred, making it challenging to distinguish between the two.

The digital economy is built on countless daily online exchanges. These exchanges involve diverse participants – from individuals with disparate roles and responsibilities to various entities, such as companies, government agencies, schools, and charitable organizations. Their interactions extend across numerous digital platforms, encompassing everything from large-scale servers to personal devices such as laptops, smartphones, and wearable technology.

Disruptive technology has broad implications. Players such as Airbnb, Amazon, and Uber do more than challenge the norm; they have redefined people’s responsibilities, requisite skills, knowledge, and job opportunities. Navigating this enormous change demands more than tech comprehension – it requires a digital-first mindset. Those leveraging these connections will be able to compete as data-driven relationships between businesses and customers become the norm.

Embracing Lean-Agile and VSM in the digital economy

Lean-Agile principles present a robust structure for staying agile and adaptable to relentless change while remaining productive and efficient. These principles underpin businesses’ ability to swiftly adapt, refine operations, and consistently offer value in a digital world marked by rapid shifts.

VSM complements Lean and Agile, providing a holistic viewpoint to identify, assess, and enhance value flow from end to end.

Pairing Lean, Agile, and VSM practices is the secret sauce for surviving and excelling in the digital economy. These methods are more than survival tools; they’re the scaffolding upon which sustainable, competitive, and ever-evolving businesses can be built.

Let’s begin our exploration with an introduction to Lean Thinking.