25 Oct, 2020 | Blogs
Yet another phrase doing the rounds in our times, global digital transformation is more than just a fad or a marketing gimmick to sell people technologies and solutions. The reality is that the world is becoming more and more connected, forcing business to disrupt the way they operate or be disrupted by more agile, technology-driven companies.
However, despite its popularity, global digital transformation is seen as a cumbersome and complex process to implement. It is only when push comes to shove that companies think of implementing it. The COVID-19 is an example of how organizations around the world were forced to adopt technologies to sustain themselves at a time when lockdown and social distancing were the new norms. According to research conducted by IDC in May, the global spending on digital transformation technologies will grow by 10.4% in 2020 to reach $1.3 trillion.
In this post, we will introduce the three main pillars of digital transformation and demystify the top three myths surrounding global digital transformation.
The 3 Pillars of Digital Transformation
To understand the impact of digital transformation on your organization, you need to know how it will change the way you interact with your collaborators, partners, and audience. Therefore, the three pillars that stand tall among the rest are:
1- Customer Experience
As the public immerse themselves in the virtual universe of the internet, companies need to look for ways to enhance customer experience. According to a Harvard Business Review survey, 40% of respondents named customers experience as their top priority for digital transformation. Whether it is the use of AI-enabled chatbots, virtual assistants, or the use of automation to seamless flow of information, companies need to incorporate more digital elements to collect data and deliver personalized experiences.
2 – Operational Process Transformation
Operational process transformation is as important as customer experience to increase value at each stage of the process. To achieve this, companies need to have better workflows, more accountability, and enhanced collaboration between different teams. Robotic process automation (RPA) and business process automation (BPA) are becoming increasingly popular to automate processes, create better workflows, improve efficiency, reduce cost and create an audit trail during the flow of information from one system to another.
3- Business Model Transformation
Combining the above two pillars helps you transform your business model while delivering more value to the market. Whether it is an external stimulus like COVID-19, which forced companies to make remote working mandatory, or an internal desire to change, business model transformation is the key to remain competitive and defend itself against any threats.
3 Myths of Digital Transformation
With all the noise about digital transformation, there are bound to be some myths that make companies take new technologies with a pinch of salt. While some of the myths are as common as ‘the top management will be responsible for its implementation’ or ‘digital transformation’s ROI can be achieved in the short term,’ there are some that can stop you from adopting it and remaining competitive. Presenting our top three myths:
1- Digital Transformation Means Improving IT Systems
Digital transformation is more about strategy and not about changing technology only. It is more about using existing systems and new technologies more effectively through automation to innovate and create a sustainable competitive edge.
2- All Strategies are Good
A strategy is defined a good or bad only when you have the end goal in sight. More than often, companies have a misconception about what a strategy is and eventually leads to failed technology implementation. Therefore, it is advisable to hire a digital transformation consultant who can analyze your current situation and find ways to make it more efficient and achieve your goals. If you’d like to create a strategy on your own, then follow these steps:
- Diagnose your business problem
- Define policies to address these issues
- Act consistently to resolve these problems.
Whether you create the strategy on your own or hire a consultant to do so, make sure your it is aligned with your business issues.
3 – It Comprises different methodologies
Methodologies like Agile, Lean, Sprints, the 5 forces of Porter are not exactly digital transformation tools. Rather, they are ways to deliver an existing strategy. On the other hand, digital transformation strategy means creating a new strategy, test it, adopt solutions that help enable these plans. Therefore, don’t run after methodologies but start with a strategy to deliver the solutions required.
To know more about global digital transformation, contact us today.