Transformation with a ‘Digital Mindset’
Transformation commonly stated, with the presupposition being ‘Digital’, is a term that continues to pop up all the time around us; in conversations, at the water cooler, in business meetings, magazines, newspapers, online media, etc…
The hype is real, the push is live, and the present is here!
Below are three interpretations of transformation related to digital:
Digitization – taking analogue information and converting it into ‘0s’ and ‘1s’. So, our beloved computers, laptops and tablets can store, process and transmit such data e.g. convert a handwritten letter into digital ‘0s’ and ‘1s’ is a simple example of digitization.
Digitalisation – is a way for an enterprise to reshape how its environment interacts by creating projects. As an example, an enterprise not using analogue communication such as the post mail, telephone and instead using digital methods such as email, WebEx, social media. Another approach could be using digital technology to create or reinvent business models focusing on People ‘e.g. digital skills’, Technology ‘e.g. move to the cloud’ and Process ‘e.g. automate everywhere’ as individual projects.
Digital Transformation – has a much wider berth and which focuses on bringing about change, or revaluating, business culture and its competency for an enterprise to reach digital transformation maturity, where an enterprise has implemented a series of initiatives aimed at transforming customer experience, operational processes and business models. This is not something that can be achieved with one single digitalisation project.
For an enterprise to start the journey, there must be buy-in by top level management, or board of directors, who understand the immediate benefits that their organisation will gain from taking advantage of digital technologies, plus supporting capabilities, when launching new dynamic and robust business models, processes that improve customer experience.
One such technology is ‘The Cloud’ which emphasises economies of scales, flexibility and enables an enterprise to accelerate its path to digital transformation by converting internal ideas and capabilities into viable and valuable software that creates new digital businesses.
Therefore, enterprises who have resisted the call to fully committed, and are watching themselves standing still being lapped by the competition in the race to full digital transformation maturity having achieved business and IT alignment due to having started their journey more than three to eight years ago moving from digitisation, to digitalization and now finally full digital transformation.
You must start now because tomorrow is too late:
“By 2020, at least 55% of organizations will be digitally determined, transforming markets and reimagining the future through new business models and digitally enabled products and services.” (source: IDC FutureScape: Worldwide Digital Transformation 2019 Predictions Report)
“15% of companies are going to invest more, they’ll focus on being customer obsessed, building the right processes in place building on modern architecture and making sure that they have the builders, the product managers, market-place managers, who in fact and in tandem with the digital leaders are going to role out this next phase of pragmatic digital business.” (Source: ‘Forrester Predictions 2019 – Digital Transformation’ – Allen Bonde, VP Research Director)
“As the advance of technology concepts continues to outpace the ability of enterprises to keep up, organizations now face the possibility that so much change will increasingly seem chaotic. But chaos does not mean there is no order. The key is that CIOs will need to find their way to identifying practical actions that can be seen within the chaos.” (Source: Daryl Plummer, Vice President and Gartner Fellow)
Today enterprises who still delay their change from ‘Analogue to Digital’, ‘Physical to Digital’ or ‘Business Culture’ and not follow those digitally minded transformational leaders, risk not only being left behind but more worryingly always playing catch up to market trends, innovations and the competition.
As we have seen on the high-street, in some parts of the UK, not transforming will eventually become a survival issue for some businesses who fail to evolve.
It’s been widely written, debated and discussed that:
- A third of all top leading companies, in any sector, will be disrupted by new competitors who will be more agile and digitally native.
- By the end of 2020 half of all business revenue will come from digital.
- Enterprises who have engaged transformation are more profitable by up to approximately 25%.
- The road digital transformation reduces tech debt, removes legacy systems enabling efficiency gains.
- Digital transformation will improve customer, employee and supplier satisfaction.
Planum IT is a progressive consultancy helping enterprise organisations on their journey to digital transformation maturity.
If your organisation is looking to start its digital transformation journey, improve or you just want to know more, then feel free to email: email@example.com to arrange an introductory & informal chat.