The digital transformation, it seems as though every keynote, panel, article and business across the globe are discussing it.
The movement known as the digital transformation is the integration of technology into all areas of a business. This results in core fundamental changes in how a business operates and delivers value to customers.
Companies rise and fall for many reasons and digital disruption is responsible for a large percentage of this.
Since 2000, research shows that nearly 50% of companies in the Fortune 500 have either gone bankrupt, been acquired or ceased to exist as a result of digital disruption.
Author, Greg Verdino, states “the digital transformation closes the gap between what digital customers already expect from an organization and what analog a business actually delivers.” To successfully transform into a true digital company, an organization must focus on what businesses that undergo digital transformation may expect to achieve.
From leadership to differential thinking and the increased use of digital technologies, at its core the digital transformation encourages innovation and supports 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.
Why your business should begin its digital transformation:
- Your competitors are doing it: According to the Forrester Research Report, executives predict that by 2020 over half of their revenue will be from digital initiatives.
- Your business will become more profitable: Companies that understand the benefits of the digital transformation are 26% more profitable than their competitors, according to the MIT Center for Digital Business.
- Your organization will become more efficient: Nine out of 10 IT professionals claim that legacy systems are preventing them from fully incorporating the necessary digital technologies to help future growth for their organization.
- Your customers will thank you: From home security to online shopping, most consumers have already adopted digital technologies, businesses that evolve with customers will experience continued success.
The Building Blocks
A digital transformation is different for each organization and is based upon their needs, challenges, customers and employees. From examining case studies, there are a few consistent elements in most businesses digital transformation which include:
- Customer experience
- Operational agility
- Work enablement
- Culture and leadership
- Digital technology integration
Defining Organizational Culture
Culture is another key component to consider when planning a digital transformation for your business. Companies are no longer creating software or running IT for cost savings and operations. Instead, IT has become the primary driver of business innovation. Embracing this shift requires everyone in the company to rethink the role and impact of IT in their day-to-day experience.
Bryson Koehler, CIO of The Weather Company, says, “There is a very different at work when you take IT out of an operating mode of, ‘Let’s run a bunch of packaged solutions that we’ve bought and stood up’ to ‘Let’s build and create new capabilities that didn’t exist before.’ If you look at the vast majority of startups, they’re not starting with giant, shrink-wrapped software packages as the base of their company. If you’re trying to create innovation inside of a large enterprise then you shouldn’t start with that either. You’re not here to run the mainframe anymore. You’re not here to run the servers. You’re not here to run the data center, or the network, or operations. That is table stakes. That’s what you can outsource.”
Although IT plays an integral role in a digital transformation, for an organization to be successful in this endeavor, everyone within a company must be onboard will to implement and adapt to these new processes.
The digital transformation transcends technology. It is about people, culture and then it is about collaborating with these new technologies.
As an organization, VALiNTRY focuses on:
- People Service: Enriching and serving our clients, our employees and one another.
- Accountability: Being accountable and responsible to maintaining commitments and providing results.
- Teamwork: Working to support our team for the greater good of the organization and our clients.
- Honesty and Integrity: Doing the right things, the right way.
- Innovation: Pushing beyond our comfort zones to seek new solutions for our business and our clients.
- Transparency: Always providing reasoning and outcomes to our clients and employees.
Focusing on these core values has allowed our organization to successful evolve by leveraging the latest technologies for our own digital transformation.
A large component of the adoption of digital transformation is technology. However, another aspect is also eliminating legacy technology and outdated processes. Take for example the federal government. The federal government spends of $80 billion on information technology each year. Over three quarters of that budget is spent maintaining legacy systems.
Although it’s the 21st century, surprisingly in the healthcare field, 90% of hospitals still use pagers. To maintain these legacy paging services, hospitals overpay by 45% every year.
Most CIOs spend a majority of their budget on existing IT concerns, not able to fully focus on new technology initiatives. However, in order to evolve, they must understand the importance of leveraging technology to increase efficiency.
Trends impacting the digital transformation include:
- Artificial Intelligence: To schedule a meeting, it takes humans approximately 17 minutes. Virtual assistants cost less than $100 per month. Soon, virtual assistants will have the ability communicate and negotiate even faster than humans.
- Contextual Insight: Sensors and embedded devices are becoming common place within an enterprise generating large amounts of data. If not managed properly, this data will be rendered useless. This information should be consolidated to help an organization.
- Security and Identity: Security and identity management actually do improve user experience and productivity. A lack of security can minimize productivity and as more information is continually shared, the proper security processes must be put into place.
- Augmentation: Augmented reality helps information to be shared throughout an organization. Augmentation will soon be extended to larger groups, enabling multiple users to access information almost instantly. It will me more dramatic, contextual and adjacent information will be presented, all in real time.
- Orchestration: APIs and orchestration are critical to increasing agility and creating new intellectual property for reuse.
- Connectivity: Satellites and wireless technologies are allowing for increased collaboration within organizations.
Start Your Digital Transformation Today
The team at VALiNTRY has the expertise to help guide your enterprise and enable your digital transformation to begin. A digital transformation must build upon the basis of a digital operating model to ensure alignment among all initiatives. From operational excellence to customer experience and product leadership, our team will ensure that the proper steps and procedures are implemented to develop ecosystems as partners and ensure success. As a result, your business will be more aligned with customer demands and resilient in the fast-moving digital future.
Contact us today to begin your transformation.