These days nearly every company is, or is in the process of becoming, a technology company. Major retailers have mobile apps and robust e-commerce platforms. Banks are getting into cryptocurrency. Grocery stores no longer expect customers to come inside to shop — they can place an order online and pick it up outside the store, or have it delivered right to their homes.
All kinds of companies are developing and using technology to make their operations more efficient and their products and services more attractive to consumers.
Satya Nadella, CEO of Microsoft (MSFT), knows the world of digital enterprises particularly well.
Speaking at the recent AT&T Business Summit, Nadella offered some advice for companies looking to make a digital transformation.
“One of the things I think a lot about is: If we use this term that every company is a digital company, every company is a software company, what does it mean?” Nadell said. “How does one create that digital strategy inside of any enterprise, across any vertical or industry? The formula I think about is what I describe as ‘tech intensity.’”
First, he said, companies need to be early adopters of new technology to power their businesses, so they don’t waste time or money later trying to get out from behind the curve. Then companies need to cultivate the ability to develop their own “digital IP,” building exclusive software and tools that only their customers have access to.
“You don’t want to