The Current State of Digital Transformation
Over the last 2-3 years, the term “ Digital Transformation ” (DT) has come to the forefront in the IT industry. Defined as “the use of technology to radically improve performance or reach of enterprises”, DT addresses a theme that is so evident in today’s business world. Unlike any time in history, organizations find themselves having to transform to stay relevant in an environment of rapid change and disruption. Look at many of today’s successful companies – Netflix, Uber, AirBNB, Alibaba – companies that were not even in existence 10-15 years ago. Yet they have come to not only dominate the sectors they are in – they have redefined how their competitors and traditional incumbents in these markets need to adapt/transform in order to stay relevant.
Digital Transformation Today
Recently, MIT and Deloitte conducted a survey of global managers and executives around the topic of digital transformation. Nearly 90% of respondents anticipated that their industries would be disrupted by digital trends to a great or moderate extent. But only 44% said that their organizations are adequately prepared for the disruptions to come.
Clearly, the ability to leverage technology as an enabler and strategic differentiator has accelerated this business disruption, but it has led to positive breakthroughs in areas such as; improved customer experience, process automation and workforce productivity. The concept and reality of digital transformation is becoming a major initiative for companies across the globe. Executives in all industries are using digital advances such as analytics, mobility, social media and smart devices, as well as improving their use of traditional technologies such as ERP and CRM, in order to improve customer relationships, optimize internal processes, and create new value propositions. Clearly, technology has moved from the basement to the boardroom and is today the single most important agent of change.
Digital Transformation Requirements
Successful digital transformation comes not from just implementing new technologies, but from transforming your organization to take advantage of the possibilities that these technologies provide. Major digital transformation initiatives are centered on re-envisioning the customer experience, operational processes, and business models. Companies are changing how functions work, redefining how people and processes interact, and even evolving the boundaries of the firm.
All of this requires us as leaders in our organizations to develop a culture of constant innovation. We are challenged to support strategies that define new opportunities for transformation, test and validate the assumptions of these ideas, and address the cultural and process changes associated with these outcomes.
Preparing for Digital Transformation
Preparing for the digital future is not just about technology. It is about creating a strategy that transforms an organization – to re-envision how they provide products and services. To align technology with marketing, communications, and automation in a way that accelerates and redefines your relevancy in a digital world.