Decoding Digital Transformation
Rapid changes in the business environment with ready access to technology and humongous amount of data in all fields has paved way for a new revolution . It has become imperative for businesses to transform itself digitally to stay relevant and keep pace with changing customer expectations and competitor’s moves.
In simple terms, Digital Transformation is integration of technology into all aspects of business. The journey of technology usage has moved from paper to spreadsheets to smart applications but today we are talking of a more wholistic way of looking at how we do business, how we engage with our customers and how we deliver value. Having access to technology in all aspects of life, customers are more demanding today. While they seek the value that they have been deriving from brick and mortar based service businesses, they also crave for seamless digital customer experience. As author Greg Verdino rightly puts it “Digital transformation closes the gap between what digital customers already expect and what analog businesses actually deliver.”
Digital Transformation involves using digital technologies to create new or modify existing business process, culture as well as customer experience. Here , the idea is not to use technology to replicate an existing business in digital form, but to conceptualise and create ways of using technology to transform the existing service into something which is significantly better in efficiency as well as experience.
We have often encountered customers who are doing extremely well in their business but have hit a plateau at some point. The reality is established ways of working are no longer yielding the same results. Some of them have tried technology initiatives in silos and are left with a bunch of independent systems which is often not enough to maneuver the organization back on a sustainable business path. Sunk technology investments , dipping revenue numbers makes business leaders look for quick fixes. To comply to the market demands , they look out to transform existing processes into digital mode . However often the big picture goes missing. Digital transformation is a journey that needs to be entailed with certain mental preparedness. Businesses looking at digital transformation need to be mindful of a roadmap to transform their existing processes in a structured, thoughtful and scalable manner. While it’s imperative for them not to risk the core business operations, they need to be open to accept new processes and explore new business models. Navigating the balance between disrupting existing business and exploring newer ways is the toughest challenge in Digital Transformation. The other important aspect is the cultural openness to embrace software centricity across products and processes. Structured, planned initiatives with involvement of stakeholders from all key departments helps the Digital Transformation journey.
Digital Transformation enables seamless integration of all core capabilities that add to the value chain of business. Since data becomes available in digital format and real time, proficiency to take decisions increases significantly. Service is consistently improved across all channels and touchpoints. Streamlined business work flows increase efficiency and reduce cost. To sum it up, Digital transformation helps businesses in four key areas
- Augmenting Customer Experience
- Building Connected Operations
- Deriving Actionable analytics
- Building New Business Models