How does digital transformation work?
Fk – digital transformation
Each presentation, panel discussion, article, and study about how businesses can stay competitive and relevant as the world gets more digital seems to be sending that message loud and clear. The meaning of the phrase “digital transformation” is unclear to many business executives. Is it only a way to phrase “getting to the cloud” that is memorable? What specific steps must we take? Do we require a consulting firm’s services or the creation of new positions to help us establish a framework for digital transformation? What parts of our business plan need to be modified? Does it seem worth the trouble?
A word of caution:
Some leaders believe the phrase “digital transformation” itself has become useless due to its overuse and broad definition. You might not like the phrase. But whether you like the term or not, the business imperatives it represents—to reconsider outdated operating models, to engage in more experimentation, and to improve your agility in responding to clients and competitors—remain constant.
With the help of lessons learned from your peers and digital transformation experts, this article aims to clarify some frequently asked questions about digital transformation and give clarity, specifically to CIOs and IT leaders. CIOs are crucial to the digital transformation process because technology is crucial to an organization’s ability to adapt to the market and continuously improve value to customers.
It’s also crucial to recognize that different businesses are at various phases of their digital transformation journeys. If you feel like your work on digital transformation has stalled, you are not alone. One of the hardest questions in digital transformation is how to get past the initial barriers between vision and execution. Anxiety results from the fact that many CIOs and organizations believe they are behind their competitors in terms of transformation even when this is not the reality.
According to Jay Ferro, chief information & technology officer of Clario, digital transformation should start with a problem description, a clear opportunity, or an aspirational aim. According to Ferro, “the ‘why’ of your organization’s digital transformation may revolve around, for example, improving customer experience, lowering friction, boosting efficiency, or raising profitability.” Or, if the statement is aspirational, it might focus on becoming the finest company to do business with by employing enabling digital technologies that weren’t available in the past.
The importance of digital transformation
The importance of digital transformation A company might decide to undergo a digital transformation for a variety of reasons. But by far, the most likely explanation is that they must: It’s a matter of survival. An organization’s capacity to respond swiftly to supply chain interruptions, time-to-market demands, and rapidly shifting customer expectations has become crucial in the wake of the epidemic.
IT leaders concurred that consumer behavior has rapidly changed in many areas since the onset of the pandemic at an event as part of the MIT Sloan CIO Symposium series. Professor Sandy Pentland at the MIT Media Lab described how well-optimized automated systems in fields like supply chain management failed to adapt quickly to changes in supply and demand, a situation that nearly everyone encountered personally during the pandemic.
It’s too soon to predict which long-term changes in consumer behavior will take hold. An interesting thing to watch will be the extent to which forced change — three out of four Americans tried a new buying behavior, for example — will revert when possible, despite today’s emphasis on stay-in-place, according to Rodney Zemmel, global head, McKinsey Digital of McKinsey & Company.