Digital transformation is the fashion expression. While almost all industries are experiencing or at least considering digital transformation, according to McKinsey, “the average digital transformation has a 45% chance of generating less profit than expected.”
Nonetheless, companies continue to invest in these initiatives, and according to IDC estimates, global spending on technologies and services that enable digital transformation will reach $ 2.3 trillion by 2023.
So why should you embark on or continue on a journey of digital transformation? And what exactly is digital transformation? We explain it to you below.
What is digital transformation?
Let’s start by defining what digital transformation means today. A search for “What is digital transformation?” produces millions of results on Google. Some definitions focus on business or operational models, while others focus more on the technology side of things. This makes it difficult for organizations to determine what digital transformation is and what they should be working towards.
Ultimately, the definition of digital transformation should focus on the ultimate goal: to deliver digital experiences to customers and end users that delight and simplify life. Whether it’s hiring a trip at the touch of a screen, cashing a bank check from the couch, or filing taxes in just a couple of minutes, most industries focus on serving customers, wherever they are. They are through the web, mobile devices, digital assistants or kiosks.
With this in mind, digital transformation is a customer-centric initiative that often requires additional training in technical practices and making organizational changes to ensure that all work is focused on customer value and satisfaction. Organizational change must be top-down, and leadership at all levels must uphold the mission and vision of the company in an ongoing and passionate manner.
When it comes to technical acuity, while each organization may have slightly different requirements for how it plans to go digital, there are some core competencies focused on:
- Cloud– The move to the cloud is here and shows no signs of slowing down. It is important for organizations undergoing a digital transformation to find the time and resources to internally improve cloud technologies.
- DevOps / QA automation: The above competencies are consistent with DevOps and QA automation initiatives. Your DevOps initiative should focus on collaboration, breaking silos and keeping development work visible. To get started with QA automation, work to make sure repetitive manual tasks are eliminated and the door is opened for innovation and strategy building, ultimately generating more value. A digital transformation is likely to stop without these practices.
- Innovation and emerging technologies: While it is important to eliminate what is superfluous and what will really generate value, those who are going through a digital transformation should be aware of the latest trends. Creating a culture of innovation can help organizations move from vision (wondering how technology like blockchain or AI will contribute to the bottom line) to decision (discovering the true value of adopting a technology). Get it by giving developers the freedom to try new strategies.
- Agile development: To keep up with the pace of technology, organizations need to make sure they follow paywall development practices. Here are some tips to get started with agile development:
– Uses Agile’s built-in liability practices. The sprint deadline, demonstration, and retrospective are intended to showcase work components to business and leadership.
– Listen to the requests of the teams from the retrospective of the sprint. If they are not complying, but are giving repeated warnings about the obstacles, listen to what those obstacles are and work with the team to resolve them.
– Be patient during some sprints, but be clear about expectations. A team may need some sprints to catch up and adapt, but it should be clear that the adjustment period is not unlimited.
Why and how should you embark on a digital transformation?
As we mentioned earlier, experiencing a digital transformation can be risky. However, organizations that are not digitally transformed may lag behind. Here are some of the benefits of going through a digital transformation and how to capitalize on them:
- Simplified processes: Since organizational change is part of a successful digital transformation, you should focus on optimizing processes. Workflows, communication and collaboration should be made more visible and synchronized.
- Customer experience: Your digital transformation must focus on generating value for the customer. Seek to achieve positive satisfaction score results as you digitize and optimize products and solutions for end users.
- Performance: With simplified processes and a focused strategy, there is an increase in performance. Use data and feedback to make it easy for leaders to streamline work and change tactics quickly.
- Competitive advantage: If companies don’t take action, competitors will move forward with their digital transformation efforts. The result could be loss of market share and eventual failure. Although the journey can be long, challenging and full of obstacles, remember that the cost of not following this path outweighs the risks of doing so.
- Income: According to MIT Digital research on the digital economy, “Digitally mature companies are 26% more profitable than their peers.” These digital companies also generate 9% more income from physical assets. Therefore, there is much to be gained financially from a digital transformation.
Digital transformation is challenging and risky, but incredibly rewarding. The technological landscape will surely continue to change, along with the ways of working. However, for those who are considering or currently stuck in their digital transformation efforts, following the guidelines above should chart a path to success.