Overall changes in IT-department value proposition (Digital innovations vs Digital transformation)

Digital suggests equal opportunities on the market both for Enterprise and for Small-Medium Business (SMB). It is happening due to easy access to modern data technology.

And if earlier SMB were competitive thanks to their dynamics in choosing and achieving certain business benefits in certain business segments, Enterprise had an access to consistency in creating and following broad business strategies with plenty of sales channels.
With the arrival of analytics, mobility, social and cloud concepts, which are united with the common name of Digital, all market participants got equal access to creation and realization of revenue generation strategies through on-demand tools. By means of peculiarities of their realization and monetization, on-demand tools, as well as information as service, are accessible for all market participants who need them for making strategic decisions without long term costs for human and organizational resources and management.
We offer you to use these opportunities and get down to your own strategy creation straight away. To create a revenue generation strategy we need to come up with the processes in the revenue generation centers and in cost centers. Traditionally, generation centers are considered to be Sales, Marketing и Customer service. Production and Operation Administration, including IT, refer to cost centers.
The Value that Digital brings is shown in the table:

To implement the strategy, it is important to switch the IT on revenue generation issues and the innovation integration, which is taking place spontaneously in existing departments. It requires a certain level of readiness and commitment on the part of IT. For IT the task can be formulated as follows: it is necessary to unite the scattered innovations implemented by enthusiasts into a single strategy for the profit generation, taking into account the opportunities offered by IT-technologies. In this case we get Digital transformation, the main feature of which is a change at the level of the enterprise, and as a result, the transition to a higher level of maturity and effectiveness. The system transition of the company to the next level of performance cannot happen constantly. Clearly defined goals and deadlines characterise such activity as a project-based, with appropriate approaches and best practices in implementation.If we stay within one of revenue generating departments, i.e. within the framework of one or two array cells, such changes may be referred to as Digital Innovations. The search for more effective methods for solving the current problems (innovations) is obligatory and endless routine, i.e. it refers to the operations and is determined by innovation culture support and the acceptance of responsibility in the company.

Regards, YL