Why “Digital” transformation is harder than any other transformation

First, let’s define “transformation.” Business transformation is about finding and successfully pursuing a new business model. IT transformation is finding out how to make IT a strategic lever for the business in addition to being a robust business infrastructure. Digital transformation is more specialized nature of IT transformation in the way that it focuses on SMACIT (Social, Mobile, Analytics, Cloud and Internet of Things).

Digital transformation has reversed the traditional notion – business requirements must drive IT initiatives. Digital transformation is more about how business can leverage these technologies to quickly adapt to rapidly changing customer needs and remain competitive. Technology is no longer just an “enabler”. It is driving business growth in such ways that business can’t even predict. (Mobile) app only sales model and Big Data led analytics to predict human behavior are good examples.

Now let’s see why the Digital Transformation is easier said than done.

Traditional CIOs Are Not Cut For It

When Business transformation is driven by business needs and market demands, IT transformation focuses on IT enabling the business functions but it still remain an “enabler”. CIO still able to drive everything. All is well. Enter Digital Transformation and all C level executives go blank and have to hire another C level person called CDO i.e. Chief Digital Officer. What’s different?

“Digital transformation is not just about technology and its implementation it’s about looking at the business strategy through the lens of technical capabilities and how that changes how you are operating and generating revenues.” Isaac Sacolick, CIO, Greenwich Associates says in an interview.

That explains why a traditional CIO can’t drive digital transformation. They don’t have just enough technical capability to drive. They need someone more equipped with modern technology known how.

EAs Are Finding It Tough Too

Some CIOs believe that they can still sail through this wave by delegating this task to Enterprise Architecture. This belief is fed to them via enterprise architects claiming to “know” the playbook of digital transformation. One such here saying enterprise architecture is to rescue but that’s not silver bullet. The reality is far from it.

Capgemini’s Ron Tolido declared that Enterprise Architects “Know nothing”. He says that traditional IT methods and architectural practices that were even start of this century are no longer relevant in the digital age. Because customer and business needs are constantly changing there really is no way to know what IT landscapes will look like in the future or what type of solutions organizations will need, Tolido says. He even compared Enterprise Architects in this emerging digital era to the character Jon Snow from HBO’s Game of Thrones—a character who is often told “You know nothing.”

Ignoring “Digital” And Focusing On “Transformation”

Digital transformation, a term that’s used constantly in the media, recurring in articles around the latest platforms, apps and software – even analysts are focused on it, with IDC predicting that 2016 will be shaped by digital transformation.

Market analysts are predicting in all directions. Some are focusing on “Digital” more and some focusing on “Transformation” more. I think that is leading to a chaotic situation. Some consulting organizations are going overboard, saying Digital Transformation as nothing to do with Digital.

The fact is that Digital Transformation is Technology led Business Transformation. When old guards are not able to catch-up with “Digital”, it is time to focus on culture “Transformation” first. It demands changing perspectives and transforming through new ways of thinking enhanced by the technological and digital literacy. It requires new skills to be learned, old strategies to be revamped.

Conclusion

Key to successful digital transformations is an IT organization lies in

• Driving internal process change through Agile and DevOps practices
• Understanding what data can do to its own successful performance
• Contributing in larger ecosystem and connecting with partners and public
• Building agile IT infrastructure and frameworks that are flexible to change
• Investing in newer technologies that are aligned with business strategy

We have entered in Digital era and it is here to stay. Technological innovations are becoming rapid than people and organization can adapt. SMACIT which initiated Digital Transformation is maturing fast and new set of technologies are emerging. Organizations should not limit themselves to SMACIT and look other areas to become early movers in those. Cognitive computing, Robotics, Li-Fi, Crypto-currency, Augmented/Virtual Reality, Networking Revolutions (SDN, 5G) are such few examples that will drive next wave of “Digital Transformation”. That’s my view for what it is worth, what do you think?