In my previous blog, I began my discussion about digital transformation. It may have been a term that you were familiar with, or it may have been a totally new concept – but there is no question it’s quickly transforming the way we work, shop and play.
I provided a definition of digital transformation and outlined that it is not simply about technology – it’s a business strategy that requires leaders to re-envision existing business models and embrace a different way of bringing together people, data, and processes to create value for their customers and capture new opportunities for their organizations.
Additionally, I listed three market trends that are forcing companies to embrace digital transformation:
- Customer engagement is evolving: It’s a whole new world and the customer has control.
- Companies have finite resources, and productivity is critical for businesses to scale: 40% of workers productivity time is lost when switching tasks.
- There is a new speed of business, and companies need to adapt: New technology is enabling new business models.
Digital transformation is the next step in what has become an ongoing technology revolution. It is the combination of the following:
- Cloud Computing
- Internet of Things (IoT)
- Big Data
- Artificial Intelligence (AI)
- Machine Learning
- Digital Assistants
- Social Media
- Smart Devices
Business leaders must examine their business models and processes and determine how to best leverage these new technologies to not only improve existing activities and connect associates, but also to accelerate the delivery of new products and services.
Learn from the Past
I am sure we all can name organizations that did not embrace digital transformation and no longer exist – Blockbuster, Circuit City, or Radio Shack, just to name a few. Digital transformation is everywhere, and it impacts businesses, industry, governments, healthcare and educational organizations – in fact, pretty much any organization. If you had any question about the importance of digital transformation, Forrester reports that some of the leading global companies – Home Depot, General Electric and Walmart – are spending over $1 billion a year on digital transformation. They do not want to become one of the names on that list above – and you don’t want your company on that list, either.
As you begin your digital transformation journey and re-envision your processes and technology, there are some key strategic imperatives that you must consider:
- Data is the new currency. Organizations need to create new platforms to handle significant volumes of data, but also to manage the tools that analyze and visualize this data.
- Smartphones and tablets are replacing desktops and laptops as the primary devices accessing information. Paper is a thing of the past, and you must have systems that work with all device types.
- Speed and convenience are not luxuries. Customers expect convenience. It’s a minimum barrier to entry.
- IT systems and processes are becoming increasingly decentralized.
- Data security is critical and is paramount in the transformation journey
- Data silos must be eliminated, and there must be a seamless exchange of data. This is critical if organizations are going to scale.
Business leaders must shift their mindset to think more strategically and less tactically as they consider transforming customer experiences and how their employees do their jobs.
As a full-service technology consulting company, KTL works with business leaders every day in helping them lead their organizations through the digital transformation journey. Need help with your journey? Get in touch with us online, or contact me at sreid@ktlsoultions.com
