Digital Transformation Myths and Trends

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

Next Generation Firewall , the Founder and Executive Chairman of the planet Economic Forum, who coined this term, writes - "THE INITIAL Industrial Revolution used water and steam capacity to mechanize production. THE NEXT used electric power to generate the mass production. The Third used electronics and it to automate production. Now a Fourth Industrial Revolution is building on the Third, the digital revolution that has been occurring because the middle of the final century. It is seen as a a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres."

He makes an essential, pertinent point - "Neither technology nor the disruption that comes with it really is an exogenous force over which humans haven't any control. All of us have the effect of guiding its evolution, in the decisions we make on a regular basis as citizens, consumers, and investors."

While Digital Transformation as a term is still misunderstood, today, digital transformation as a small business imperative is widely arranged. What then is really a digital transformation used? Could it be an IT project? Or the introduction of several cool tools in the company? Or the addition of a mobility is driven customer relationship management (CRM) initiative to engage customers better?

As an organization, if you're looking to embark on the digital transformation journey or trying to avoid it, there are still a few myths around digital transformation that you need to steer clear of. If you want to lead your organization through digital transformation, the first step is understanding the realities of digital transformation - rather than getting overly enthusiastic by the hype.

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

The reports/white papers that we 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 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 truly 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 only channels and customers. It really is disrupting organizations from within - changing the direction they do business. Digital brings new opportunities for organizations that can embrace the technology fast enough. It speeds time-to-market, reduces costs, and unlocks new revenue streams.

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

I want to build an app. My digital transformation is performed.

Digital transformation isn't concerning the introduction of several tools that are targeted at change a particular facet of your organization, 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 a site there. To stay competitive, you must re-engineer how your organization creates value for your customers in the digital age.

Re-envision your business much less a set of services and products but instead as a part of the personal value ecosystems your customers assemble according to their desires and needs. Figure out how to increase value by expanding your company's role in your customers' personal value ecosystems.

Digital Transformation can only just occur through disruptive technologies

Every digital transformation exercise need not take the examples of Uber and Airbnb with regards to the usage of emerging technologies. The technology stack that you'll use depends on your organization context and technological leverage is merely one portion of the digital transformation. Sometimes, you might 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 truly digital enterprise means more than just 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 way 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. An electronic enterprise relentlessly searches out, identifies and develops new digital business models, always making certain customers and employees are in the center of whatever it does.

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

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

Forrester Report says - It is advisable to transform your business by applying digital thinking across all you do - how you win, serve, and retain customers; the way you operate your internal processes; and the way you source business services.

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

Digital transformation business success

Perhaps you have identified areas in your organization where automation is most relevant?

Is 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 coming from 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 currently empowering employees through digital channels make it possible for faster decision making and encourage greater agility within your organization?

These are just a few myths we've tried to address. We invite one to share your undertake these as well as other myths.