March 4, 2022
Innovative digital technology is changing the industrial ecosystem; therefore, companies must have the ability to adapt to the new environment. Despite these shortcomings, digital transformation (DT) still has a low success rate, and therefore, it is crucial to identify its determinant factors.
With more professional services firms moving towards new ways of working digitally in 2022, the industry is experiencing unprecedented competition. This helps companies:
A successful digital transformation requires an efficient suite of digital technologies. However, it’s crucial to avoid the pitfalls of rapid innovation, particularly when it comes to data management. Data has become central to every digital business, and irrespective of industry, there is a growing movement to create a secure environment in which privacy is paramount.
As a result, organizations must prioritize investing in technologies that ensure greater compliance and transparency. It is imperative to look for solutions that can offer long-term holistic offerings to achieve greater compliance with an ever-changing regulatory environment.
The key to a successful digital transformation is a well-planned and integrated strategy. It should include a clear vision backed by strategic imperatives and quantified business outcomes. In order to achieve sustainable competitive advantage, digital transformation should be linked to the overall business strategy.
The process of funding digital transformation is complex, and it is best-approached step by step. Begin with an end-to-end view of digital opportunities and requirements across the customer journey in the short term. Afterward, choose a challenge that fits your desired investment and return on investment. These actions enable organizations to self-fund innovation, optimize technology investments, and remove barriers to change.
When it comes to digital transformation, the first thing is to upgrade an organization’s IT infrastructure, mobile infrastructure, the cloud & data lakes. A well-planned IT upgrade will provide your business with up-to-date tools that boost employee productivity, increase employee satisfaction, and lower IT maintenance costs.
Recently, a research study demonstrated that organizations with a cloud migration initiative in place before the COVID-19 pandemic fared far better than those that did not.
In order to achieve success in a digital transformation, there must be leadership commitment, all the way from the CEO level to the middle management level. Communication and engagement from the top is the key to demonstrating this commitment, as well as assigning key decision rights and responsibilities down the organization. In the current environment, leaders have to pay close attention to how they are perceived and analyze whether the tools, techniques, and technologies they use are making their companies’ key stakeholders i.e., the employees, consumers, and investors – feel valued.
In today’s digital world, businesses may need digital innovations such as artificial intelligence, machine learning, cloud computing, etc., but without the right operating instructions, the tools either sit idle or become money pits.
To build capabilities, one needs to combine human expertise with technology in a coherent, flexible operating model that places the customer at the center. Beyond simply being a digital company, the goal of digital transformation should be to transform into a modern, powerful large enterprise capable of generating uncommon growth.
To be successful with a digital transformation, the right talent needs to be in place. This means that you need to have the right set of skills or technical brains within your organization, as well as the ability to attract and retain top talent. Try to form a dedicated digital experience team with clearly defined roles, objectives, responsibilities, & accountability which are clearly defined. Ensure that the entire team is aware of objectives and processes so that you are centered on purpose.
Companies need to establish targets and clear metrics across processes and outcomes, with sufficient data availability and quality checks.
Digital transformation is a process that takes time, and like in any other technical journey, you need to decide where to start first. Typically, most companies begin with the IT uplift followed by building a strategy and prioritizing digital operations.
The key to achieving all the above-mentioned factors is to simply have clarity that digital transformation is not a single thing, but rather a combination of many different things. Right from leaders and employees, to objectives, technology, resources, and measures of success, each factor can greatly contribute to a company’s digital transformation success.