Implementation of Digital Transformation

While talking to founders and top executives in companies, we usually come across conversations regarding the execution of #Digital #Transformation in their respective industries. Not so long ago, it used to refer to the conversion of all information to digital formats that can be exchanged, indexed and to be used for "data-based" decisions. But there is a whole lot of processing that changes when we do this conversion. WikiPedia says, "Digital Transformation (DX) is not necessarily about digital technology, but about the fact that technology, which is digital, allows people to solve their traditional problems."

What happens when we give Digital Transformation power to business functions? It's no longer about just changing technology. It will be a mix of Strategy, Leadership and Innovative thinking.

Driving digital transformation involves creating a perfect blend of Customers, Value, Data, Competition and Innovation with Leadership, Ideas, Action, Teamwork and Planning.

When implementing digital transformation, companies make mistakes mostly in these three areas.

1. They have no idea what technology can do for them, So Experiment! - This will keep creating activities which does not yield any progress to business
2. Cut cost and improve efficiency - Hence creating most efficient processes, but ends up being most irrelevant
3. Innovator's Dilemma - Create their innovation unit separate from their parent company and once the product is ready, it becomes hard for companies in later stage as this Innovation doesn’t gel with the Parent Organisation.

In this world, having 4 global strategies with respect to number of products vs the number of customers it serves, to create Digital Leadership, it must strengthen the core by

• Reconnecting with customers in their Journey, Engaging and Managing them better
• Rebuilding the organisation in its structure, capabilities and learning
• Re-imagine Business in its scope, ecosystem and business model
• Re-evaluating Value Chain in its R&D, Operations and Distribution

If we strengthen the core of business and create Digital Leadership, you will naturally align the company with the future. Recognize what is POSSIBLE - Use readily available technology and use them to your advantage in your delivery of products and services and integrate your business capabilities. This is where we should create competitive advantage! How you are going to deliver products and services differently than others. Put it out there in market and see what people love and what they expect and how much they are willing to pay for your product.

We need to focus on Customer Engagement (This will transform Go-To-Market strategy) & Digitized solutions (This will transform its value proposition), it’s not a must to have both of these. In order to execute this, we need Operational backbone to create operational excellence and Strong Digital Services backbone to create business agility. These 4 elements can create deep impact in structure, skills, roles, processes and partnerships in an organisation. This will create transformation in an organisation with above said strategy as its foundation.

As appeared in forbes, there are "Seven Ways To Implement A Digital Transformation"

• Identify what digital means to your organization
• Blur boundaries between technology, marketing, sales and operations
• Don't forget the customer
• Fix technology basics first
• Prioritize initiatives conservatively
• Define a roadmap, and be prepared to redefine it
• Define outcomes and tie them back to your overall business strategy

This article is based on research by #Stanford, #harvard, #MIT, #Columbia Business Schools and #Forbes Research.