One of the hottest topics among CIOs and CTOs is digital transformation. But while definitions of digital transformation have similar themes, there is no absolute description of what it is.
According to EnterpriseProject.com, digital transformation is "the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers.”
The Agile Elephant website describes digital transformation this way, “[Digital transformation] involves a change in leadership, different thinking, the encouragement of innovation and new business models, incorporating digitization of assets and an increased use of technology to improve the experience of your organization’s employees, customers, suppliers, partners and stakeholders.”
Perhaps author Greg Verdino describes it best, “Digital transformation closes the gap between what digital customers already expect and what analog businesses actually deliver.”
According to the MITSloan Review, the key elements of the digital journey are:
- Transforming Customer Experience
- Transforming Operational Processes
- Transforming Business Models
In our last blog we discussed how your competitors are realizing very strong benefits from transforming internal processes through process digitization, worker enablement and performance management. Today we will conclude our transformation series with Business Models.
Transforming Business Models
Your competitors are not only changing how their internal functions work, they are also redefining how those functions interact with each other, resulting in evolving functional boundaries within the company and even fundamental changes in the activities of the company.
Digitally Modified Businesses
Your competitors are realizing that digital transformation is not just about making changes to the IT profile of their companies. As one media executive said: “We’ve realized that if we don’t transform the way we do business, we’re going to die. It’s not about changing the way we do technology but changing the way we do business.”
Your competitors are wrapping digital service around their traditional products. For example, several grocery chains have enhanced their customer experience with online shopping, coupled with pickup or delivery, attracting new customers and additional revenue from existing customers who expect such interaction between themselves and the businesses they patronize.
New Digital Businesses
Your current competitors are introducing digital products that complement their traditional products. Also, new businesses are entering the marketplace every day with competitive digital products and services. Digital allows companies to escape the brick-and-mortar location stranglehold and rapidly adapt to a changing marketplace. They are well-positioned to not only expand their product and service offerings, but to offer them all over the globe.
As your competitors travel down their digital transformation journey, they can take advantage of shared services all over the globe. While some of these businesses are shifting from national or multinational to global, digital shared services are available to all businesses. Your supply chain, or your place in your customers’ supply chains, are examples of portions of your business that can be vastly improved by collaborating and sharing information. Shared services promote efficiencies and reduce risk.
Through Digital Transformation, your competitors are fundamentally changing their businesses, their products and services, and even their marketplace. Companies that do not embrace digital transformation will be quickly irrelevant in today’s rapidly changing marketplace.
Digital transformation requires:
- Strong leadership to drive change
- Vision to determine what parts of the company need to be transformed and in what order
- Focus to follow the vision
From its inception, before “digital transformation” was the newest IT buzzword, SeedSpark has developed more than 150 applications for clients which improved and/or automated business processes. These organizations stretch across the globe, from the United States to Canada, Columbia to Italy, and many places in between. We are powered by a unique combination of experts and experience in many digital and operational disciplines to assist your business along the digital transformation journey. If you want a guide on this transformative journey, please contact us at (704) 246-5052 or firstname.lastname@example.org.
“The best-managed firms are constantly identifying new ways to redefine the way they work in the new digital era.”