Digital transformation may not be a new term anymore, but it is part of an important ongoing conversation for all organizations – big and small. It is the guiding light for all companies that are preparing for a future-focused, agile, and innovative workplace. The pace at which the organizations are now pushing for a digital transformation post-pandemic is unparalleled.
The pandemic accelerated the need for digital transformation. And that is not solely because of the remote home offices sprawling all over the world, but also because of the growing need for hybrid workplaces, technology-led business processes, AI and machine learning-led automation, and exponential growth of big data.
Integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers, is the core of what digital transformation is about. It's also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure.
Data is no longer comparable to oil. Today, its value has far exceeded oil for many reasons. Firstly, data can be generated at a controlled pace and it is immune to the fluctuating market conditions. Secondly, data is renewable and reusable. Also, unlike oil, the simple accumulation of data is not worth much unless it is leveraged to generate valuable insights through analytics and combinations of data sets.
A great example of this is Amazon. Amazon sources over 2,000 historical and real-time data points on every order and leverages machine learning algorithms to find transactions with high risks of fraud. By crunching the data points for meaningful insights, the company prevents millions of dollars worth of fraudulent transactions every year. The customized recommendation list that Amazon curates based on their customers’ past browsing history and purchases is also a fine example of how data can be a resource for your organization.
It is no secret that processes dictate results. And for an organizational transformation to go smoothly, there must be numerous processes that should work in sync.
Now that everything from watching movies to hailing cabs is available on-demand, customers are expecting more and more companies and industries to embrace digital as their primary modus operandi. For service departments, that can mean better service expectations and 24/7 customer support on their apps and social media. To achieve that, your business would need to scale operations and create an IT infrastructure. Adopting Cloud-based services can be a good start.
Technology is the engine of digital transformation. From the IoT to design thinking and from augmented reality to artificial intelligence, the power of technology is at the core of all innovative organizations. And just like processes help run a well-oiled machinery (i.e., your organization), technology drives the transformation.
Technology has been driving business growth, steering operational efficiency, and often stimulating customer loyalty. As is evident in the case of Starbucks. Where most companies stop after building a mobile app, Starbucks built an end-to-end consumer platform anchored around user loyalty. The company’s key innovation, their Mobile Order and Pay app, is fundamentally a customer-first strategy. It addresses the basic needs of the consumer: convenience quicker service, and hassle-free payment. Coupled with their extensive loyalty program, the app gives Starbucks the perfect platform to up-sell and market to consumers, besides allowing them to better understand their customers’ habits and needs.
But just investing in high-end technology may not enough, the same must be spearheaded by technology leadership alongside a talented team.
Digital transformation necessitates a talented team led by a visionary technology leader to guarantee success. A talent pool with a digital-focused mindset can not only accelerate the digital transformation but can also help you stay ahead of the curve in this new normal.
An organization that invests in the right people resources who possess both, the right acumen and capability, can go a long way in establishing a leading digital workplace. According to Deloitte, 71% of digitally mature companies say they can attract new talent based on their use of data, compared to 10% of early-stage digital companies.
We have always known that change is good, but not many support changes that often. And the resistance can come in the form of mindset, the will to act or just the lack of agility. Digital transformation requires an organization to be agile enough to effect real change. In fact, agility is key to accelerating transformation. When asked to rank business drivers, 68% of companies across different industries identified agility as one of their three most important initiatives.
But contrary to popular belief, agility is not limited to the workforce in the company, rather it spans across five operating-model dimensions – Strategy, Structure, Process, People, and Technology.
The outcomes are also multi-dimensional. When implemented the right way, enterprise agility has been found to impact employee engagement, customer satisfaction, financial and operational performance – the common goals of digital transformation.
Launching a digital transformation initiative can be daunting as it requires careful planning, organization, buy-in, budget, resources and most importantly, the zest to evolve. Technology is the engine of digital transformation, data is the propellant, the process is the guiding framework, talent is the driving force and agility is the gear. For a complete digital transformation, you need them all, and they must all function smoothly together.
Do you believe that your organization is ready to usher into the new era of digital transformation? Not sure? We can help.