Business in Digital Transformati

by Nico / YuwanZhang

In the previous article we have talked about business , technology and information system . As we know , It is inevitable to adopting information system to facilitate the development of business because the technology can augment the speed of diffusion of information and knowledge inside the organizations .

The whole world is facing intense change right now that never happen before , thus the more digitally mature the company is, the more they are focused on responding to and taking advantage of the change such as covid-19

What is digital transformation

firstly, transformation means the enterprise need to change their mindset and culture about the way how they do business .

"The strategic adoption of digital technologies and practices that increases the digital maturity of the organization and improves its ability to execute business transformation for growth. "-Altimeter,Prophet2020 .Normally , for the enterprises who adopt the digital transformation , their ultimate goal is to increase the digital capabilities, skills, and processes of the organization to achieve specific business objectives.

Based on a Forbe's Survey ,70% of respondents were "extremely or somewhat concerned" as to whether their company can be competitive in the next 2 years . 57% of leaders view startups from the same industry as greater competitors than enterprise-sized companies . The velocity of external factors change (such as political ,social ,crisis,digital technology ,environment ...) is increasing in which case it is not easy to stay competitve during decade for a enterprise anymore .

To achieve long-term success for a company need focus on the digital transformation , since it can result in increased revenue, profit growth ,augmented opportunities of transformation success, increased return on capital and so on .

The key drivers of digital transformation .

The best way for us the understand the digital transformation in organizations is to firstly understand the key drivers which spurring the digital transformation , since the enterprise can understand how to enhance the speed of digital transformation .

All the figures what I showed is from Altimeter.the 2020 state of digital transformation benchmarking digital maturity in the covid-19 .

As we can see ,these factors can be categorized into four parts :

(a)Operation , the 1st two drivers which are "increase productivity to steamline operations"35% and "ensure that technology and data better support operations "35% are all belong to operations , in which case how the enterprise augment the efficiency and effectiveness of operations through technology and data are highly significant.

(b)Customers, for the enterprise make a long-term success , customers are playing an important role ."reach and engage cutomers on multiple digital channels" 26%,"understand the customer journey with better data and insights"23% ,"increase profitable growth from existing customers"23% , as we can see customers is the second biggest driver of digital transformation . in which case to connect with customers deeply is getting more and more crucial .

(c)Employees , not like operation and customers which are the biggest dirvers of digital transformation , employees still can contribute to it ."working in a more agile,flexible way to take advantages of opportunites"31% ,"develop better employee collaboration and innovation"23% ,"create a culture capable of handing disruption"14% .Employees are a big asset for enterprises , they are the key source of innovation ,thus nowadays how they can adust to the change , collaborate with other employess and work in a more agile way are predominant.

(d)New business ,the least factor in the four drivers of digital information ."invest to launch products/services to go after new markets "18% ,"increase resillience to disruption"16% ，“comply with new regulatory standards”15%. Follow the emerging markets ,the enterprise need launch the new product or services which can let them stay competitive at some extent.

To create great customer/user experience is one of main goal of digital transformation . The great utility and warranty of operation and compentency of employees all contribute to the generation of greate customer/user experience , thus the enterprise can improve the profit , revenue ,competitive advantage and so on.

Transformation is hard

Definitely ,transformation is not a easy job  ,since it need the integration of technology , operations ,ability of data analysis , people , organization ,work style and so on .Only few enterprises can successfully accomplish digital tranformation . However , there are still three common methods to tackle digital transformation , they are

(a)Digital Maturity Based on geography , industry , organization ,the digital maturity is various significantly .The digital maturity are so important that can decide whether the enterprise can achieve their business goals .Through the lens of customers , they never stay where they are , the process of transformation continues on , because the high velocity of world change ,thus if the enterprise wanna to meet or exceed the customer needs , need upgrade continually in which highly depend on their digital maturity.

Below is the five steps of digital translformation maturity which from Altimeter.the 2020 state of digital transformation benchmarking digital maturity in the covid-19 .

(b)Customer Journey, for the enterprise ,we need understand the customer pain points along the customer journey ,and address these points what they are wanting or lacking . This process is to let the enterprise " Fucos on Value". If we product a product or a service which is in a high quality , but they failed to meet the customer requirements , then it's a fail.

(c)Digital Tech Upgrade,  benchmark against the competition.use the competitors information in order to improve our own work, products, services or processes.

References

CHARLENE LI WITH OMAR AKHTAR, SUSAN ETLINGER, ED TERPENING, TED MOSER, AND AUBREY LITTLET, (2020), The 2020 STATE OFDIGITAL TRANSFORMATION ,available at https://www.prophet.com/pdf/the-2020-state-of-digital-transformation/