23 May, 2018 | Blogs
Fundamentally, a business enterprise would exist in a ‘going concern’ to make profits and maximize the shareholders’ value. Digital transformation is one such innovative strategy that an enterprise should look to practice in a structured and time-bound manner. We have previously discussed the steps we follow in preparing a digitization strategy, as well as the importance of change management and of hiring a change management consultant for your business. But the main threat that faces businesses that are looking to undergo digitization is resistance, and the most deadly is leadership/management resistance. Management resistance is quite enough to ensure the death of a digital transformation initiative.
Here is an important dimension that should be highlighted, and to put it simply, digital transformation would bridge the gap that always existed when digital became a necessity for efficiency but remained a huge cost center for a majority of times. It is all about getting closer to transforming this cost center to a revenue center, by consistently and selectively applying Digital to get closer to customers and stakeholders alike to make difference to the way they live, do business, or collaborate.
The lack of understanding the benefits of investing in digitization and the cost of undergoing said transformation are the main reason why managers might be resistant to such a change. When reading about the digital transformation you get to read a lot about mobile, analytics, social and cloud most of the times. The fact remains that it is up to your CIO and other CxO executive team members to figure out what would be a right beginning for your digital transformation program and what would its life cycle look like in their company. Your organization could really be ready for digitization even if they aren’t talking about social, analytics and mobility, similarly, even if a start-up can still be talking about massive investments into digital transformation even if they do not use large enterprise systems, for instance, an ERP. As we said, the key to remember, and hence to derive most benefits of amazing digital transformation program, is to know how and if digital investments made by your organization are taking it closer to a customer to make difference to the way they live, do business, or collaborate.
Learn more about why digitization is good for your business.