Are you truly transforming your company digitally? Explore the Buzzing Trend in 2021
Meet the new buzzword: Digital Transformation! As every company pursues this buzzing concept, it can mean different things to each business of varying sizes. So are businesses today equipped to truly understand the real meaning of digital transformation and why it is necessary to adopt it in this modern world?
“Intelligence is the ability to adapt to change.” — Stephen Hawking
Digitalisation has brought about a drastic change in our lives. From face-to-face interactions, we are talking, meeting, and engaging with each other over digital platforms. Recently, companies have also had to change their working models overnight owing to the COVID-19 pandemic.
Hence, it comes as no surprise that this generation is experiencing a cultural change and digital transformation — the latest technology trend has everything to do with it. Every industry research, news article, and social media post speaks of this latest trend.
But, many decision-makers like CEOS, CIOs, business leaders are still confused about the true meaning of digital transformation? Does using Skype or Microsoft Teams count to a digitally transforming initiative? What is the correct strategy for its implementation? Should one get rid of the old to make way for the new or, is it not worth the fuss?
Understanding Digital Transformation
It is not a singular technology or software but a combination of technological and cultural changes that improve the efficiency and ultimately the ROI of a business.
A real digital transformation requires one to transform their business by revamping the way they conduct their business and adopt digital technologies to improve their functions and processes.
“The biggest part of our digital transformation is changing the way we think” — Simeon Preston
So, digital transformation is a mindset that requires businesses to experiment with new ways of executing things and embracing changes to stay relevant in this constantly changing tech world.
Why do you need Digital Transformation?
If there is one mantra to stay by in today’s times it is, “Adapt or perish, to survive.”
One often sees that businesses that fail to adapt to the new market conditions and changing customer demands are quickly replaced by new businesses that do. We are experiencing rapid digitalisation and transformation has never been more critical. Some of the supporting statistics are as below:
1. Gartner estimates that the IT spend will reach $3.9 trillion this year as the COVID-19 pandemic continues to act as a catalyst for digital transformation in almost every industry.
2. The major technology spends areas for 2021 are expected to be augmented reality/virtual reality (AR/VR), Internet of Things (IoT), artificial intelligence (AI), cloud, and robotics.
3. 30% of jobs would most likely be automated by the mid-2030s in the developed and developing countries in the world.
4. A study by Boston Consulting Group stated that companies that are at the forefront of using big data generate 12% more income than those who don’t use big data.
5. The digital transformation market is expected to grow at a CAGR of 23% to $3.3 trillion by 2025.
What does it take to be a true Digital Transformer?
Consider five defining characteristics of real digital transformation:
1. Embrace the digital culture
To embrace the digital culture, you need to start by evaluating the existing technologies and processes in your companies. An ideal way would be gathering all department representatives and brainstorming ideas that can be implemented across functions. One way would be digital product management i.e integrating digital technology into products to create a new process. For example, Apple, the tech giant, has also entered the health and wellness industry with apple watches. Analytics and customer intelligence will help companies in constantly evolving their products.
2. Adapting a design-centric approach
Developing a design-centric approach assists businesses in addressing new ways to solve a problem or a new customer demand. Including all stakeholders, be it customers, business managers, and the management, will help understand the growing demands and the possible digital solutions. A strategic approach will help you design a solution, test it, leading to an on-ground implementation.
3. Being a data-driven business
Data-driven organisations are the ones that thrive the most today. This is because their solutions, offerings are backed by strong insights and analytics. A true digital transformer analyses the raw data from its varied sources and uncovers relevant insights. So, it is essential that you know the importance of the available data, how appropriate analytics and AI can be applied to leverage data for true digital transformation.
4. Utilising change management
Digital transformation is disruptive and may face resistance since it changes the traditional way of doing things and respective roles. Employees may fear for their jobs especially if automation is involved so it is imperative to address fears and implement change gradually. It is necessary that the top management owns the initiative and communicates it with all the employees so that they embrace the change with all its strengths and opportunities.
5. Maintaining quality over quantity
Every organisation initiative has one key goal — to improve quality and the resulting customer experiences. A real digital transformation initiative will help you maintain the optimum quality of your products. What it requires is a step-by-step process, testing and evaluating product outcomes at each step, correcting and fine-tuning processes as and when required. Digital transformation initiatives require an incremental approach to achieve top-quality products.
Digital Transformation seems to be the road ahead. AI, IoT, Cloud, automation, and several advanced technologies are coming together to change the way businesses operate. Starting from a top-down approach, the management should instil this technological as well cultural shift in the mindset of all its stakeholders be it, employees or customers, to survive in this highly competitive landscape.
So, what are your thoughts on this ongoing revolution? Are you planning to strengthen your organisation with digital initiatives?