There’s a reason that companies like Sears and Blockbuster have died out, and companies like Amazon and Netflix are flourishing. Amazon and Netflix embraced digital disruption and transformed business models.
Digital disruption and the shift in customer behavior threatens existing, direct relationships with customers. Digital has changed the dynamic of business. It has placed the power firmly in the hands of the consumer.
Customers are demanding a modern, digital experience that engages with them in the same manner they are accustomed to in their day-to-day lives: on-demand, tailored to their needs, in the palms of their hands, and in response to their voice.
Digital options to engage are proliferating. Data usage and availability of data is exploding. New IoT devices are disrupting consumer touchpoints.
Digital disruption and the demand for insight-driven outcomes.
Simultaneously, today’s business environment demands actionable insights delivered at the point of decision, with more speed. The business desires the promise and power of analytics from all the digital disruption.
Multitudes of small investment decisions are made daily, on the front-lines, by every part of the business… Where do we focus on customer service? How do we optimize staffing levels? Meet the minimum regulatory requirements, or deliver additional value?
Digital is not an ‘optional extra’ or an app bolted onto the side of the company strategy. Responding to digital disruption isn’t about creating a list of digitization priorities; it’s about identifying vulnerabilities and value-creation opportunities.
Disruption creates opportunity for organizations that truly adopt a transformative mindset to their digital strategy. Others lose their competitive advantage or face extinction as a result of not evolving their technology landscape and digital capabilities.
“Going Digital” means leading (or making) the market/sector.
Recent studies show companies that are more mature in their adoption of digital capabilities deliver better performance in revenue, profitability, and market capitalization. With a focused “digital-first” strategy, leading organizations are achieving:
- 360 degree view of a Customer
- Seamless multichannel customer experience
- Decision-support with big data and advanced analytics
- Innovation of products, business models, and operating models
- Instant connectivity with customers, colleagues, and suppliers
- Elimination of legacy applications, services, and costs
A value-based investment model drives digital transformation.
Big data, data science, machine learning, and mobility are just a few of the modern digital capabilities that can be leveraged to create value. The upside potential is seemingly limitless – but at what investment?
The demand for these digital capabilities in the enterprise is 5x greater than IT organizations’ ability to deliver. If digital transformation is all about value-creation, then the journey must be planned with a wise investment strategy.
Start with this guiding principle: Digital needs Data. Analytics drive a wise investment in the digital strategy.
Starting the Digital Transformation Journey
Organizations want the effect of Digital Transformation but struggle with the pathway to achieve the desired outcomes. Many are stuck on the first step of the journey: understanding the difference between technology modernization (digitization) and true, value-creating digital transformation.
Below are a few guiding principles to keep your digital journey forward-moving and focused on value:
- Big picture vision that is directionally correct and has key stakeholder alignment
- Cohesive integration between Enterprise, Digital, and Data strategies
- Clear ROI and outcomes from the projects that are executed
- Agile development methodology and process that pivots with changing requirements
- Modern digital platforms that ensure speed of delivery with customized approaches
While every organization has unique needs and opportunities, the principles for digital transformation are consistent.
Where is your organization on the digital journey? What does the roadmap look like?