Digital Transformation And Innovation In Today’s Business World21 June, 2017 / Articles
When businesses and the way they operate shift from their traditional mode of operation and management to the modern and technology oriented ways of operation, the transitions referred to as Digital Transformation or disruption.
Since change is the only thing constant, digital transformation has become imperative for all businesses, small, medium large. Be it automation, logistics, software, retail or medical — digital disruptions is omnipresent. Delivering a good digital business experience to customers and employees requires the use of-of new innovative business application.
Enterprises should be able to deliver custom applications at the speed of ideas. That’s the way to stay ahead in competition in today’s world. Lowering operational costs and enhancing customer experience is the core of digital transformation.
Digital transformation is not just about embracing new technology, it is about a change in thought and organization culture. There is a need for organizations to address the change in business scenarios, dynamic business demands and innovate ways to quickly cater to these changing needs. Leaders and IT teams in any enterprise should work hand in hand to meet the business requirements, drive innovation and march towards continuous improvement. This is what Digital transformation is all about — accelerate business activities, lower cost, improve time to market, bring about a positive change in processes, people, and competency models.
Digital transformation is also sometimes referred to as business transformation. In fact, some prefer to use the term digital business transformation, which is more in sync with the business aspect of the transformation.
Digital business transformations are driven by key factors like Innovative Technology, consumer customer behavior and market demand, and also environmental factors.
Technological innovations lead to technology disruptions. The business process moves away from legacy systems to adopt modern technology like a cloud. Big data, IoT, RAD etc. These and many such technology innovations are then used and acknowledged enterprise-wide. They bring value to the business, increase speed, lower effort and cost and deliver results more effectively.
Then comes the next factor: customer behavior. What are the customer demands and expectations on the business (and the demands on technology to meet business needs)? Customers demand increased technological capabilities combined with the desire for ease of use. And finally, organizations have a deal with external influences such as regulatory laws, changing the economy, market competition, and business partner demands.
What the customer demands and whether the technology changes are able to cater to the business demand is of manifold importance. Increased capabilities and lower cost are important in this.
A Forrester Consulting research study done by Accenture Interactive found that the key drivers of digital transformation are profitability, customer satisfaction, and increased speed-to-market.
For a successful digital transformation in any business organization, digital maturity and a modern organization culture are of paramount importance. Let’s see in details:
- Customer Demands: Providing customers with a delightful experience in every aspect of delivery. Gain customer loyalty in a way that customers speak of your brand.
- Process Orientation: Process digitization and employee enablement that promotes data-driven decision-making resulting in greater performance improvement and overall operational transparency.
- Innovation in Business: New digital products and/or digitizing existing business models that goes beyond existing business needs and foster new innovative products and service and cater to changing business needs.
Business Transformation is the real change that is causing a storm in the business world. Its impact is felt not only in operations but also in industry structures and also at all levels in the organization. Business leaders and CIOs are coming forward to ensure that digital transformation coupled with innovation is driving business and bringing in productive changes and delivering value.