Digital Transformation Now!

“All companies in the world will be digital technology companies, when it comes to processing the value chains, contacting employees and customers.

Most bosses ... know that all companies have to become digital companies. Still, 40% of them will not survive the next ten years. ”

quote: John Chambers, Chairman, Cisco

The digitalization of the organization is urgent now, because not only is the technology ready. Now, the need for digital solutions is accepted by customers, employees and managers.

But where to start with digital transformation on “Monday morning”? While the purpose of any business is to win and keep customers, the start for the work of digitalization must take place, where value creation arises: in the processes.

Because the processes are, what used to be called "work". This work is increasingly being done and / or supported by computer systems. However, this does not happen “autonomously”, but a concrete decision-maker must set goals, define processes and organize and monitor their digitization. A plan is helpful for this, e.g. a digital strategy.

Digitalization Strategy provides Orientation

An effective digitalization strategy provides a clear statement on how to achieve the relevant business goals - not just to increase efficiency. Other advantages of a digital strategy:

• Growth of sales and profits through digital customer access and e-commerce,
• Competitive advantages and increasing market share through digital differentiation of processes and products,
• Cost savings and efficiency improvement from process automation, data analysis and supply chain integration,
• Additional earning opportunities and sales streams through new business models.

Digital transformation in companies requires effective development and implementation of the necessary changes in processes, business rules and IT requirements. This is a task of management, whose responsibility is to achieve business results with digital solutions.

What is Digitalization from a Management Perspective? Definition

Digitalization from a management perspective increases the effectiveness of management to all relevant operational, strategic and market-related decisions and processes - through real-time digital access to and control of business objects inside and outside the company.

This management-related definition of digitalization focuses on the tasks of the managing directors and board members. Their priorities aim at the entrepreneurial application of the technologies in processes and decisions; not on technical issues or sophistication, such as software selection, robotization, enterprise architecture, cyber-physical systems or artificial intelligence approaches, etc. These digital technology tools are necessary, but only tools.

4 Questions about Digital Transformation

The key questions about digital transformation are:

1. How do we increase our business success with digital solutions in the form of innovative business models, products / services and increased efficiency?
2. Which digital processes, data and systems do we need for the competitive delivery of our products and services?
3. How do we organize the selection, development, implementation and introduction of required IT systems, programs and solutions?
4. How do we get the new business system up and running successfully supported by the technology and how do we create successful scaling up?

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The Challenges of Digitization

The challenges of the profitable use of digitalization and Industry 4.0 do not lie in the technologies themselves, but in their effective implementation to achieve business results. What are the biggest challenges of digitization? The biggest challenges are

• the development of a digital mindset,
• iterative, agile IT management to learn faster than the competition
• teamwork across domain silos for real customer benefit and
• entrepreneurial innovation of processes, products and business models.

We are increasingly living in a digital world, where access to knowledge, people and products are just a click away. This opens up a multitude of new entrepreneurial opportunities that are being used right now. By whom?

Fast Mover Advantage

The open question is, who will make the step to digital innovation faster.

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The author Andreas Sattlberger supports executives and corporate boards in digital transformation. He is the initiator of the successful "Digital Transfer Manager" courses for automotive clusters, global corporations and post-graduate university courses.