Why your company needs a digital business model

At the 2018 MIT Sloan CIO Symposium, Stephanie Woerner of the MIT Sloan Center explained how CIOs can create a plan for digital transformation.

Why your company needs a digital business model

At the recent MIT Sloan CIO Symposium in Cambridge, Stephanie Woerner, a research scientist at the MIT Sloan Center, spoke with TechRepublic's Alison DeNisco Rayome about the importance of creating a digital business model for successful transformation.

Read her comments below, or watch the video above.

Woerner: It is important for companies to have a digital business model because they need a plan for transformation. They need to be thinking about what their competitive advantage is and how they're going to use that advantage to create great digital offerings for their customers.

We have seen great CIOs play important roles in terms of advising the executive committee and in terms of opening up the infrastructure, helping the executive committee figure out what their company's crown jewels are and then serve as enabling those crown jewels and opening them up for innovation and used by outside companies.

Our research has looked at a number of ways that CIOs can add the most value, so one is by helping the executive committee identify the threats and opportunities that digital brings to the table. The second is by getting out and talking to customers and then bringing those learnings back into the company and amplifying the voice of the company inside. Third is really amping up innovation, thinking about how digital can be used to create new value propositions for customers and also how that innovation can be used to make the platform more modular and reusable and for consolidating the data.

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Image: iStockphoto/Olivier Le Moal