Is your organization digitally transforming?
Bhupesh Kumar Pandey
Project Manager, SAFe Certified PO/PM, SAFe Certified RTE, Certified Scrum Master
In recent years, digital innovation has reshaped almost each and every industry. The organizations in every industry have embarked on digital transformation journey?in one way or another.?Depending on the transformation maturity, organizations are at the different level of digital transformation phase. Many a times there is a confusion whether the organization is digitally transformed? are we doing right digital transformation?
To understand it more clearly, let us have a look at the different phases of digital transformation.
What are the different digital transformation phases?
Digitization / Digital enablement
The first phase in the process of digital transformation is digitization or digital enablement. It represents basic IT modernization; for example; leveraging new consumption models (like cloud) to directly replace functions and costs that already exist in an enterprise. Shifting from on-premises to cloud can generate tangible cost savings for an organization.
In this stage, organizations focus mainly on the tasks automation, which means more applications are?introduced & automated or created?as part of the?business?flow.
It starts with automating?well-defined, individual?tasks, which improves efficiencies.?At this stage, the individual tasks are automated, but whole system is not yet integrated consistently.?
E.g. IVR systems that answer common questions about a product or service,?but many a times need human intervention to answer non-standard queries.
Digitization does not have a high impact on how an organization goes to market, or how it serves its customers better or how it optimizes their key business processes.
Digital Optimization
The process of improving existing operating processes or business models, using digital technology is referred as digital optimization. It is the second step in the process of digital transformation. In the phase, organizations are often enacting the same business processes – but using technology to optimize the procedures and experiences for end users and customers. They start taking advantage of cloud-native infrastructures and?driving automation through their own software development,?which leads to a new generation of applications to support the scaling and further expansion of their digital model.
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Let us take the case of insurance claim, once the claim is filed by the customer, the insurance company receives, investigates and acts on the claim. The digital optimization model will expedite the process, though the process will still remain the same. The customer gets a single window for the insurance query and claims. The insurance company will receive the claim in a digital format, and digital workflows would route the right information to the right adjuster at the right time, who could then review the claim and can provide resolution much faster.
It will drastically reduce the time to decision for the insurance company, as well as will increase the satisfaction level of the customer.?
Digital Optimization is “the process of using digital technology to improve existing operating processes or business models.” -?Gartner
Digital Transformation
Digital Transformation, more than other business changes, requires strong integration between technology and business executives. A lot of organizations embark on the journey of digital transformation, however in the midway they realize that achieving the true digital transformation is much harder than initially thought of. They often have issues like complex IT architectures, unintegrated data, and processes that are not well-enabled through technology.?
Digital transformation is about creating or enabling new business models. It is not about improving the existing businesses. Transforming the business processes is very complex task that requires a process centric to transforming an organization’s business models, coupled with scale-out and elastic foundational technologies. It also includes cutting down on costs, empowering employees, better management and stimulating innovation. It is not just adding start of the art technology or new and improved business processes, but the whole process surrounds around these four pillars
In addition to that organizations need to understand that, the digital transformation is a continuing process and never finalized. It is actually a journey not a goal, and the?journey?is never ending, so organizations need to focus on the journey, not on the destination.
so, is your organization really digitally transforming?
Please add your Thoughts & Comments.