While global enterprise businesses are challenged by the volatile economic scenario, they are keen on improving their margins while embracing industry-wide disruption that is led by digital transformation.
Consider how media, payments, travel, e-commerce, hospitality, and many more are now challenged by new entrants in the industry owing to the successful leverage of digital technologies. They have managed to delight customers with several real-time experiences, even surprising them with their ability to offer convenience and lower prices that most enterprises cannot offer. Enterprises possess undeniable assets in the form of a loyal customer base, global reach, capital, and more, but they are still lacking the ability to compete on the disruptive “digital first” level offered by challengers.
Enterprises now have to transform into digital enterprises, enabling every process right from production and customer retention to supply chain etc. to serve customers with agility offered by “digital first” entrants.
According to McKinsey survey results, companies should always opt for technology-supported changes that have always favoured digital transformations and their impact. It is reported that when the following key factors are in place, respondents are nearly three times more likely to implement digital transformation successfully.
The factors include:
• Getting the best, digital-savvy leaders for management
• Building social capabilities for the workforce
• Empowering people to work innovatively
• Getting digital upgrades for communication tools
• Frequent communication and collaboration with traditional and digital methods
The Process to Enable Digital Transformation
Digital Transformation is essential to the rise of the enterprise with their impact on industry verticals. Here are five keys to success in digital transformation.
1. Pick a North Star
Digital transformations need a “North Star” to succeed – the real target outcomes that are conveyed to the organization with the priority of resource allocations and dependencies.
Most successful digital transformations can relate to real business outcomes. These outcomes need not to be technology implementations and can be desired business outcomes.
2. Start With Existing Applications
A technology vision describes an expected future for the organizations who are keen on digital transformations. But if they are too large a jump in terms of technology and skills, they are bound to fail.
Successful organizations always opt for digital transformation journey with their existing applications and modernize them, ensuring significant ROI. The existing apps serve as a foundation for new technology implementations with enough anchors delivering competitive advantage against new entrants.
3. Optimize Changes With Choice
The rate of change in IT is accelerating considerably. Enterprises are stuck in a loop of leapfrog in terms of technology implementations versus their competitors. However, those undergoing digital transformations can find themselves locked in a single stack and pricing. With a change in market conditions, the technology vendors are unable to support changing objectives.
Hence organizations driving successful digital transformations always optimize every layer in the technology stack. Their conversion optimization model is realized by working with different cloud providers, app technologies, infrastructure, and vendors that render immediate flexibility to respond to market conditions and technology changes without much hassle.
4. Automation of Application Security
With quick processes in place, it is clear that traditional security measures that include checks and balances will be quite slow and frustrating for any IT organization. Yet, one can expect no short-cutting of security measures to rev up processes.
Successful digital transformations integrate security in the application lifecycle right at the start. Additionally, they invest in secure application platforms and then automate security policy automation throughout the lifecycle. These measures enable such organizations to empower developers without compromising on any security measures.
5. Opt for Revolutionary Innovation
After investing years of time and effort along with millions, enterprises sometimes step back from all transformation approaches. Such failures are filled with several attempts to rebuild the stack in one go and completely re-engineer all processes.
But the successful transformations rely on patience and steady measures to tackle each phase of the journey. They rely on measurable objectives with transparent feedback for adapting to changes and also learn swiftly from inevitable setbacks. They then secure support from their team to enable the next phase of the journey.
It is evident that the keys to digital transformation learnt from successful organizations are not without risks. But by following the key takeaways, an organization can choose their personalized approach to enabling digital transformation efficiently.Opinions expressed here by Contributors are their own.