Notes

Digital Transformation Myths and Trends
You have been hearing about Fourth Industrial Revolution. It's most likely the hottest topic for businesses, thought leaders, policymakers, scientists and of course technocrats.

Klaus Schwab, the Founder and Executive Chairman of the World Economic Forum, who coined this term, writes - "THE INITIAL Industrial Revolution used water and steam power to mechanize production. THE NEXT used electric power to create the mass production. THE 3RD used electronics and information technology to automate production. Now a Fourth Industrial Revolution is building on the Third, the digital revolution that has been occurring since the middle of the last century. It is seen as a a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres."

He makes a very important, pertinent point - "Neither technology nor the disruption that comes with it is an exogenous force over which humans have no control. All of us have the effect of guiding its evolution, in the decisions we make on a daily basis as citizens, consumers, and investors."

While Digital Transformation as a term is still misunderstood, today, digital transformation as a business imperative is widely agreed upon. What then is really a digital transformation used? Is it an IT project? Or the introduction of a few cool tools in the business? Or the addition of a mobility is driven customer relationship management (CRM) initiative to activate customers better?

As an organization, if you're looking to embark on the digital transformation journey or trying to avoid it, you may still find several myths around digital transformation you need to steer clear of. To be able to lead your organization through digital transformation, the initial step is understanding the realities of digital transformation - rather than getting carried away by the hype.

On this page we use excerpts from the few, prestigious industry reports/white papers to dispel several myths.

The reports/white papers that people quote from include:

World Economic Forum's (WEF) White Paper on Digital Transformation of Industries: Digital Enterprise, developed in collaboration with Accenture
Forrester's Report, The Digital Business Imperative, co-authored by Martin Gill and Nigel Fenwick
Digital is really a fad; a trend that my business do not need to think about
digital transformation process
Digital has transformed the marketplace context for each and every business, and the pace of change is accelerating.
The WEF White Paper says - There is widespread recognition among leaders in most industries that the role of digital technology is rapidly shifting, from being a driver of marginal efficiency to an enabler of fundamental innovation and disruption. Digitalization is the reason behind large-scale and sweeping transformations across multiple aspects of business, providing unparalleled opportunities for value creation and capture. Business leaders across all sectors are grappling with the strategic implications of these transformations for his or her organizations, industry ecosystems, and society.

Digital Transformation means exceptional customer experiences powered by new technologies

Digital has impacted not just channels and customers. It really is disrupting organizations from within - changing the way they do business. Digital brings new opportunities for organizations that may embrace the technology fast enough. It speeds time-to-market, reduces costs, and unlocks new revenue streams.

Forrester Report says - Digital business isn't only about customer experience; it is also a method to drive operational agility. Digital operations can increase speed-to-market, make employees more productive, promote leaner processes, and maximize asset utilization.

Let me build an app. My digital transformation is performed.

Digital transformation isn't about the introduction of several tools that are geared to change a particular facet of your business, be it employee collaboration or customer transactions.

Forrester Report Says -

Digital fundamentally changes your relationship together with your customers. You can't address this change with a bolt-on digital strategy that adds an app here or perhaps a site there. To stay competitive, you need to re-engineer how your business creates value for your customers in the digital age.
Re-envision your business not as a set of services and products but instead as part of the non-public value ecosystems that your customers assemble according to their desires and needs. Learn to increase value by expanding your company's role in your customers' personal value ecosystems.
virtualization can only occur through disruptive technologies

Every digital transformation exercise need not take the types of Uber and Airbnb with regards to the usage of emerging technologies. The technology stack that you would use depends on your business context and technological leverage is merely one portion of the digital transformation. Sometimes, you may achieve significant enhancement of productivity, agility, and customer-centricity through the use of tried-and-tested operational technology (networking and databases) and strategic technology (enterprise resource planning or customer relationship management) or mobility.

WEF White paper says - A digital enterprise stands for more than simply using new technologies for the sake of it. Rather, what truly distinguishes and provides an electronic enterprise its competitive advantage is its culture, strategy, and method of operating. Digital enterprises strive continuously to enable new and leaner operating models underpinned by agile business processes, connected platforms, analytics and collaboration capabilities that enhance the productivity of the firm. A digital enterprise relentlessly searches out, identifies and develops new digital business models, always ensuring that customers and employees are in the biggest market of whatever it does.

Digital transformation: I have to get this done this year therefore i am not falling behind

Digital Transformation cannot be and need not be considered a sprint. It is just a long journey with multiple touch points and milestones; dependencies and synergistic endeavors.

Forrester Report says - You must transform your business through the use of digital thinking across all you do - the method that you win, serve, and retain customers; the method that you operate your internal processes; and the method that you source business services.

For example, your answers to the below questions alone will allow you to craft a roadmap that takes digital transformation beyond the realm of IT.

Digital transformation business success

Have you identified areas in your organization where automation is most relevant?
Can be your existing workforce consistently improving productivity and quality?
Which steps have already been taken to convince your investors about your digital vision and the long-term value-creation of your digital transformation journey?
How much of your revenue is via new resources of digital business?
Do your organization leverage analytics around customer data, operational data, and compliance?
Do you have a digitally literate leadership team?
Have you established training programs to overcome the digital skills gap and reskill your existing employees?
How are you empowering employees through digital channels make it possible for faster decision making and encourage greater agility within your organization?
These are just a couple of myths we've tried to address. We invite one to share your take on these along with other myths.
My Website: https://peatix.com/user/16898039