Responding to market change
Legacy organizations have always been challenged with the ability to innovate by responding quickly to rapid market changes. This has largely to do with their approach to product or service development which is oftentimes too slow and expensive.
How agile can help?
The Agile approach to product or service creation means individuals from different departments work together in small teams. This differs from traditional department divisions with little communication between them. As a result, time is not wasted on waiting for responses from various departments or through misunderstandings. Moreover, potential obstacles are spotted and dealt with earlier due to more collective involvement.
Overall, Agile enables organizations to test products early, learn on the go and provide the Agile development team with key learnings as quickly as possible.
Making things people want over making people want things (customer-centricity)
The traditional way legacy organizations approach work is to first look at the products and services they can create, and then desperately search for a target group. The biggest mistake in these cases is to start developing add-on features, when in reality, it’s not doing anything for the customer.
How can Agile help?
One of the main principles of Agile is to build products and services based on the needs and expectations of the customer. By considering customer feedback from day one, teams are able to make informed product decisions at every step of the process.
The Agile method involves launching a minimal viable product (MVP). It is already desired and can be shipped to the customer with each iteration. Subsequently valuable feedback can be gathered from very early on and makes the process much quicker and more efficient.
Premature drive to monetize over gaining new customers
When it comes to scaling, a common expectation for legacy organizations is to drive in revenue right away. However, this approach might not be the most effective in the long run, especially when other competitors are prioritizing user growth.
What can they do about it?
It is important to find the right balance between managing monetization and gaining new customers.
The idea behind postponing profit to grow customer base is to grab as many customers from early on as possible. In the case of neobanks, for example, it would be much more difficult for them to later convince users to switch to their service or product.
Furthermore, considering that neobanks are constantly in competition with traditional banks with large user bases, it makes more sense for them to try and rapidly grow their customer base as early as possible. Soon the tables will turn and this will be an equal concern for traditional banks.
We make legacy organizations
customer-centric and agile.
Want to learn more about how customer centric approaches and agile principles can be put into practice to tackle these challenges?
Click here to check out our previous client cases, and how we’ve supported and guided legacy organizations to navigate these challenges.