Digital Transformation – Are You Embracing It?

What does “digital transformation” mean? There are plenty of definitions from Gartner, Forrester, IDC, and others. Digital transformation means migrating to a better platform. When we integrate digital technologies using it, the outcome becomes efficiently effective to serve the purpose. The aim is to utilize technology in business to transform it into something significantly better. For businesses, the transformations are influenced by factors such as innovation in technology, the behavioral pattern of consumers, the market’s movements, and even environmental aspects to some extent. This transformation is not only focused on the present needs but also directed towards a prioritization for future needs.

What has made digital transformation such an important topic these days?

Well, when times change, businesses need to adopt the change to grow and sustain. If left behind, the threat of going out of business becomes imminent. Let’s say you are a 15-year-old organization; the chances are high that you are using legacy software and out of date IT systems. It might be serving the purpose for your business, but your competitors are capitalizing on far more advanced and efficient systems to attract the customers by engaging with them across multiple channels. Even if you started with innovative technology, the tech field moves at a ridiculous pace, and you must have a strategy in place to stay parallel with it.

Why is digital transformation so important?

The late, great Andrew Grove, CEO of Intel, famously said, “There are only two type of companies – the quick and the dead.” Going strictly by the numbers, organizations across the world spent $1.3 trillion on digital transformation technologies in 2017. The research company that figured out this number expects the spending to almost double between now and 2021.

Another set of figures by Grant Thornton in a survey revealed that more than two-thirds (69%) of CFOs and senior financial executives are planning to increase their investment in technologies that speed business change, and four in ten said they plan an increase of more than 10 percent in the next 12 months. Just under half said their companies' digital-transformation investments are meant to help them overtake their competition through differentiation.

All these numbers mean is that most companies are now using a technology company because the need to transform to a digitally driven business model is not just critical to staying ahead of competitors but for its survival.

Does digital transformation matter? To whom?

• For businesses that demand digital innovation
• For employees seeking recent tech experience
• For customers liking the user experience
• For staying updated with data and analytics
• For insights that help in decision making
• For streamlining operations and processes

What is included when a business chooses digital transformation?

If a business is all set to step into a digital transformation project, everything contained within the business functions and processes is revived instead of just enhancing existing methods. The core objective of the digital transformation is to create something new, like an improvement to the customer experience (for example, by allowing customer self-service), streamlining the supply chain, or using insights from data to offer new products and services.

What happens to the existing systems after a digital transformation?

Moving on with a digital transformation does not mean that organizations should discard their existing hardware and software infrastructure investments. 90% of existing software applications will still be in use by 2023 – says Gartner.

The existing infrastructure might pose an obstacle when starting a transformation. According to the Logicalis Global CIO Survey, almost half (44%) of CIOs believe their existing setup and complex legacy technology is the chief barrier to digital transformation, with 51 percent saying they plan to adapt or replace existing infrastructure as a means of accelerating digital transformation.

What’s new after a digital transformation?

The newness varies post-transformation according to the needs, challenges, and goals of an organization. The new zing that will pump up the business would include:

• Customer experience
• Operational agility
• Culture and leadership
• Workforce enablement
• Digital technology integration

Who can navigate the transformation project in an organization?

Generally, CIOs are the ones to hit the start and kill switch of technology investments like digital transformation. However, the ones that have to play the key role in the process of transformation are the new C-suite specialists, such as chief digital officers (CDOs).

You should also know the reasons for digital transformation failures

Just like success, failures are also the result of the combination of many factors, or it may even result from just one issue.

• Confusion in digital transformation and its objectives is a big contributor
• Dribbling the responsibilities and required efforts to bring IT and OT together
• Talent scarcity
• Not getting your business on the Cloud
• Relying too heavily on OEMs or Systems Integrators
• Not believing data science
• Failing to realize that digital transformation requires software to do the heavy lifting
• Depending on just one service for all your digital transformation needs
• Running short with capital
•  Lack of continuity
• No teamwork

Failure is also the result of not understanding the need to change in first place. Digital transformation initiatives can only be successful if there is a clear directive on providing exceptional customer experiences. Whatever objectives are being envisioned, the customer needs must be at the core of the work and everyone in the company needs to understand that.

For all businesses out there, the message is to embrace digital transformation rather than wait for it to be required. A true competitive advantage is often built by doing things early before success gets imitated and margins become diluted.