What Is Digital Transformation?
Because digital transformation will look different for every company, it can be hard to pinpoint a definition that applies to all. However, in general terms, digital transformation is the integration of digital technology into all areas of a business resulting in fundamental changes to how businesses operate and how they deliver value to customers. Beyond that, it's a cultural change that requires organizations to continually challenge the status quo, experiment often, and get comfortable with failure. This sometimes means walking away from long-standing business processes that companies were built upon in favor of relatively new practices that are still being defined.
Why Does Digital Transformation Matter?
There are a number of reasons that a business may undergo digital transformation, but by far, the most likely reason is that they have to. It's a survival issue for many.
Every business should not only care about digital transformation for the sake of their company's survival, they should focus on securing company-wide support and collaboration to get digital transformation right – before they get disrupted by a competitor or a startup.
But even if business leaders don't believe they have to transform, there are many reasons why they should consider it anyway.
- Their competitors are doing it
- It will make them more profitable
- It will make them more efficient
Their customers will thank them. Whether external customers, or internal employees, people have already largely adopted digital practices in all facets of their lives, from shopping online via their mobile devices to adjusting their home thermostat remotely. They are waiting for businesses to catch up.
What Does A Digital Transformation Framework Look Like?
Although digital transformation will vary widely based on organizations' specific challenges and demands, there are a few constants and common themes among existing case studies and published frameworks that all business and technology leaders should consider as they embark on digital transformation.
For instance, these digital transformation elements are often cited:
- Customer Experience
- Operational Agility
- Culture and Leadership
- Workforce Enablement
- Digital Technology Integration
What Role Does Culture Play In Digital Transformation?
In recent years there has been a fundamental shift happening in the role of IT. No longer are companies building software or running IT for cost savings and operations, but rather IT has become the primary driver of business innovation. Embracing this shift requires everyone in the company to rethink the role and impact of IT in their day-to-day experience.
Although IT will play an important role in driving digital transformation strategy, the work of implementing and adapting to the massive changes that go along with digital transformation falls to everyone. For this reason, digital transformation is a people issue.
What Drives Digital Transformation?
An important element of digital transformation is, of course, technology. But often, it's more about shedding outdated processes and legacy technology than it is about adopting new tech. Examples like these span all industries, and the prevalence of legacy technology hinders CIOs' ability to successfully embark on a digital transformation strategy.
If businesses want to evolve with the rapid pace of digital change today, they must work to increase efficiency with technology wherever possible. For many, that means adopting agile principles across the business.
Digital transformation is a massive undertaking, especially for larger, established companies. When done right, it will result in a business that is more aligned with customer demands and resilient in the fast-moving digital future.
So, What’s Next?
Reach out to Surya if these are some of your concerns or challenges - let's start the conversation!