According to the 2017 State of Digital Transformation report:
“The good news is a growing number of businesses are investing in innovation strategies to uncover new growth opportunities. The bad news is most companies surveyed lag behind or ignore the pervasive change in connected consumers’ buying behaviours”
What does this mean to the journey of Digital Transformation undertaken by many organisations in the hope of finding the holy grail of rapid innovation and value creation for the business and its stakeholders?
Digital Transformation is now the “silver bullet” that has taken the business world by storm. If adopted successfully, it is expected to promote business agility and help businesses bridge the gap between the business and its customers by creating an adaptive & effective mechanism to deal with market fluctuations. Though, at the end of the day, no matter how rosy a concept sounds, the only way you can justify implementing it in a business is when you can quantify the value it brings and the return on the investment made.
Some experts believe that digital transformation only keeps businesses alive and afloat enough to keep playing against competitors and break even in the fight to survival, while others believe Digital Transformation adds genuine value to your business and helps it grow tenfold. We’re here to speak about the realistic value added by digital transformation to businesses and how it can propel business agility to the next level.
Based on a study conducted by CIGREF (a long-time French association of CIOs that is established and powerful), digital transformation is a corporate strategy before anything else. It is a well-structured strategy that eventually leads to technological advancement, but people play a major role in this process, rather than just technology. The actual transformation is brought about by effective strategy and communication; “digital” is only a means to execute the transformation.
Real value is not created by technology, it is only a catalyst toward building value. The value of initiatives like digital transformation can be non-economical at the start, but benefits can be seen in other sectors of the business-like client engagement and loyalty, as well as employee engagement and advocacy. Digital Transformation is a people-driven initiative that improves the ability of your business to innovate and grow laterally.
In today’s rapidly evolving world, customers do not invest in products or services anymore, they invest in experiences and loyalty. To bring about this transformation externally, the transformation needs to start internally first and be focused on transforming people aspects first.
Based on Conway’s Law – Any organisation that designs a system (defined broadly) will produce a design whose structure is a copy of the organisation’s communication structure.
The Corollary: Basis the structure of the system we wish to design, we can frame the organisation structure.
Conway’s Law is the core to Digital Transformation strategy and approach. As clearly stated, if you want to transform the products/services you create for your customers and want to disrupt them, you need to be able to first disrupt internally. This is what will realise the true value of Digital Transformation for your organisation. To create a truly unique and empowering experience for your customers, businesses embarking on their Digital Transformation journey, have to seriously consider looking at –
They need to build strategies to ensure they are leveraging the concept of adaptive learning to stay one step ahead of their competitors. Digital Transformation enables businesses to think-outside-the-box and stay relevant in a world that has room only for those who are willing to adopt and adapt with the contemporary. Finally, the success and value of Digital Transformation is driven by how quickly the talent within your organisation is able to adapt to and learn from the market, when compared to your competitors.
“Organisations learn only through individuals who learn. Individual learning does not guarantee organisational learning, But without it no organisational learning occurs ” ― Peter M. Senge, The Fifth Discipline: The Art & Practice of The Learning Organization