In a world where the pace of change is accelerating, with heightened customer expectations and new, nimble competitors quickly unseating established enterprises, the old ways of working won’t cut it. Digital transformation is an effort to make established enterprises fit for the digital age.
What is it?
Digital transformation is the coming together of technology and business, evolving your organization to be more resilient in the digital era. It fundamentally changes how you operate: how work is created and measured, how teams are formed, how decisions are made.
In terms of this transformation process, there isn’t one single end point: it is an ongoing evolution of your business, nudging itself toward market opportunities and changes.
The digital era is characterized by the impact of technology and the speed of change, which is increasing ambiguity but also creating new business models and scale. Digital transformation is about becoming resilient to this era, not just about implementing a technology, creating a product or automation. It’s a fundamental shift in how we live and work.
Transformation activity typically involves:
- modernizing legacy architecture — both business and technology
- creating new digital products, services and customer interactions
- improving engineering practices and disciplines
- introducing modern operations around organizational design, funding practices, talent development, recruiting and portfolio management
- intelligent use of data to improve decision making, personalization and product development
- partnering, cooperating and collaborating with the ecosystem of other digital platforms and products that extend your reach and/or offer convenience to your customers without you having to build everything
What’s in for you?
A thorough digital transformation program will enable you to compete in the digital era by:
- Improving your ability to address ever-changing, heightened customer expectations, build intimacy and gain competitive advantage
- Accelerating the delivery of new products and services to your customers
- Enabling you to embrace emerging technologies and unique business processes that make new opportunities possible
- Building enterprise resilience, which increases your ability to respond, pivot and sustain through uncertainty.
- Potential for extensibility and scalability within and beyond your enterprise through collaboration and partnerships
What are the trade offs?
It requires the modernization of legacy systems, operating models and leadership thinking. Dealing with all three can be hard and the decisions you face as you unpick the business can be confronting. You need to evaluate whether you have the skills needed in-house.
Transformation is not an end state; it becomes an ongoing muscle, teaching the business how to learn and adapt all of the time.