Managing business transformation in the VUCA World

Managing business transformation in the VUCA World

Make Conscious choices to transform from ‘Doing Digital’ to ‘Being Digital’

The current pandemic has shown how businesses are in need to adapt to the frivolous changes it demands. The cycle of market demand and supply has been greatly affected, but moreover, a state of flux has been created by this pandemic which is eagerly pushing the business environment towards becoming more unpredictable. It is no surprise that we live in a VUCA world. But…

What is VUCA really?

The US Army War College was among the first ones to use VUCA, which stands for volatility, uncertainty, complexity, and ambiguity. Sounds very gray doesn’t it?   Not trying to be your Chief Pessimism Officer or anything, but the competition is fierce out there and the need for business transformation has intensified. So, to ensure that you don’t fall prey to ‘Digital Darwinism’ you must understand technology better and integrate it with the right business strategy.

Let me explain what the term really means, especially for you:



  • Uncertain: There is always some amount of uncertainty about the business environment. A lot of factors can change overnight which can result into unclear and unsure decision making or even no decision making at all! For you it means you need better understanding of the changing market demands.


  • Complex: There are a lot of challenges involved in any business. The factors that affect an effective operational strategy are multiple which can cause unforeseen issues that one needs to navigate from. As for you particularly, the complexity lies in redefining your business value proposition to suit the demands of the digital world.


  • Ambiguous: Most of the times there are situations that present themselves naturally, posing a threat to the business, which one has no control over. We simply lack clarity and awareness in such conditions. Ambiguity can be culled when you strengthen collaboration and communication with all the stakeholders in the ecosystem.

In our recent joint survey with the Confederation of Indian Industry (CII), we found that 70% innovation in digital transformation is unrealized.  Organizations face a lot of challenges in the VUCA world, it could be difficulty in adopting to the digital world, lack of awareness of external environments in the business ecosystem, the direction of technology evolution, or even being unable to identify the right business properties due to ‘digital immaturity’.

To rise up to those challenges, you have to make choices that can help you embrace digital transformation, It calls for the use of the Magic Triangle Framework to strike a balance between business, people, and technology, all mapped to the core business strategy.

Skills needed to lead in the VUCA World



  • Understanding: VUCA’s elements are dynamic. The uncertainty it creates is certainly a disturbing one. But you can respond to it in a positive manner by considering new ways to develop, learning from the mistakes, and analyzing your business needs. Our survey findings suggest that, 34% companies have already re-shifted their focus to adoption of digital strategies to enhance customer experience. In order to bring digital transformation in your business model, there are 3 things you need to understand:


  • What – The value proposition your business offers to its stakeholders. Figure out how to go from ‘doing digital’ to ‘being digital’.
  • Who – Your target segment, relationships, and channels to generate revenue streams. Form new entities and relationships with the right application of technology to transform your business model.
  • How – The activities, partners, and resources needed to deliver the value proposition you identified in the ‘what’ part. It could either be the active, voluntary way or organized way, or the reactive way, which can affect your business due to its unplanned and unexpected nature.

Fun fact: Currently less than 28% companies execute their business voluntarily, the rest as you can see work after that Big Red button is pressed

  • Clarity: It is going to be very difficult to stay relevant in the VUCA world. But one thing that would make all the difference is a clear communication channel between you & your peers. It will help re-align your business goals. Team development and most importantly resource retention is going to be essential factors in gaining the edge over competition. And by clarity I also mean that you have a well- defined plan for advancing your digital transformation journey.


  • Agility: Planning can save you a lot of trouble in the VUCA environment. Creating contingencies wherever possible and enhancing your learning quotient can take you places in difficult times. When you embrace adaptability on you own, you thrive dynamically. This also means that you have digital maturity in place.

To survive in the VUCA environment is going to be challenging as well as exciting but applying the right skills at the right juncture will help you sail through smoothly with little hiccups here and there, of course. No journey is easy.

Although, you can efficiently mitigate most of the problems that will rise in the VUCA world, all you need to do is build a robust team having best talent, have a defined data strategy, define your goals, identify the critical data sources, and establish the right leadership.

Write to us to know more about our services, learn how to leverage your data for decision making, or learn how to prepare your business for the digital unknown.


P.S: Stay Safe, Stay Healthy!