2. Implement a modular architecture
Leading companies feature software stacks that are modular, facilitating rapid innovation. Their developers frequently build in-house software products or platforms by leveraging free, but valuable, open-source software, as well as licensed components for routine functionality. This allows them to create applications faster. One executive stressed the importance of designing components with change in mind, because reconfiguring is always better than rewriting code.
Executives recognized that the system would make mistakes and they would have to reimburse customers when things went wrong. However, they were willing to take the risk because the savings in license fees gave them a margin for error. In time, they iterated and continually enhanced the system, ultimately getting them to a solution that was distinctive.
In a digital world, distinctiveness often results from codifying unique knowhow, something a firm knows how to do better than its competitors, in software and applying it at scale. Fundamentally, it’s about continually offering a superior value proposition and doing so more productively than before. It’s particularly important to keep in mind that as digital technologies keep evolving, the ability to continue to enhance your products, services, and operations is unending. And as Box’s Levie points out, the journey is never done.
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