Characteristics of Stage-3
In Stage-3, the firms will likely experience that the profit margins for the traditional business model/services will continue to decline, as a result of decreasing customer interest. Therefore, in Stage-3, the firm should continue to develop its new digital business model (its services and practices), but at the same time evaluate when to stop investing in the traditional business model.
Following the profitability of both traditional and digital services
Following the profitability of both traditional and digital services, allows in advance to recognize the tipping point when to withdraw the traditional services or unsuccessful digital service experiments. Therefore, one of the main responsibilities of Tactical Governance (in Stage-3) is to continuously collect performance data of processes and services being adjusted/created.
Solving conflicts and collecting new development ideas
Another responsibility of Tactical Governance is to follow conflicting targets of on-going digital projects as well as to collect, experiment and pre-qualify new ideas or improvements to business services or work practices.
The entire organization, customers and vendors will play an important role in Stage-3 while providing new ideas and proposals to Tactical Governance. If these ideas are pre-qualified, they will be sent to Strategic Governance as updates to Integrated Digital Masterplan.
Summarizing the main tasks of Tactical Governance in Stage-3
- to measure the profitability of traditional and digital services
- to collect user and customer feedback data of new services/practices (using surveys)
- to solve conflicts and over-laps of digital projects or organizational targets
- to collect and experiment with new ideas/improvements
- to transfer larger pre-qualified ideas to Strategic level for acceptance as updates to Integrated Digital Masterplan (smaller pre-qualified ideas directly to Digital Masterplan)