The Holy grail for private fairness is to find a business you can grow rapidly and viably. One area of growth that private fairness (and everyone else) cannot ignore is the power of Digital Transformation. OK, that sounds a little like the start of a super-hero film but give this a moment.
Actually, a superhero doomsday setting isn’t that far off the mark. Without question that and endless OCR solution choice of businesses are not prepared for the digital age. They don’t have a digital strategy and they’re going to set out to fail with greater regularity, more quickly as all facets of digital marketing and digital buying continue to be felt.
So what does that mean for private fairness firms? First and foremost, there are going to be some pretty good deals out there soon, but only for firms that understand the ability of Digital Transformation. Rather than growing value through buy and better management, prudent firms can target companies that can’t work out how to transform their structure or processes to not spend as much, gain more market share, and profit through digitization. Turning around these companies might be as simple as instituting a CRM system, or putting up a very strategic transactional website to attract and convert more visitors. These are going to be the Private Fairness Rockstars in the coming years. But that is the future — it’s now that counts.
The private fairness firm that starts Digitally Adjusting now is going to be way before blackberry curve. Look at the possibilities, the CRM, the strategic website, but look up, way up — two words: mission and vision. Think of the most effective companies on earth and guess what happens their vision is. Apple’s vision is to provide their customers with endless tech toys that all link together faultlessly. Netflix is all about bringing you endless entertainment for a monthly fee — and wonderful the cable companies along the way. You. S. Steel is — steel. Nothing shoots up a company more than knowing who it is and where it’s going.
This is an area that Digital Transformation does a great job at — adjusting a company through vision. And in this case the vision is not a core principle — but the idea that the core principle needs to be transformed. Digital Transformation is about taking a company and growing earning while you move the company into the 21st century. And that is exciting! Not only does it mean employees enjoy their work more as you eliminate copying and administrator work, but it conveys to everyone a new sense of purpose. Digital Transformation is really about changing How a company operates and not necessarily WHAT it does. Steel is steel — but that doesn’t mean You. S. Steel can’t digitally transform.