The digital transformation of enterprises should not be seen as a technological revolution. If you fall into this trap, your transformation journey would probably be a resounding failure.
Digital transformation is primarily a change in vision, corporate culture and the relationship with customers. Technology is the vehicle for this transformation.
1. Organisational and corporate culture aspects
• The end of IT isolation
Traditional IT departments centralise the management of all the infrastructure, software and applications required for the entire company. With the democratisation of smartphones and tablets, the number of applications have increased significantly. Since then, every service manager can have access to tools already developed and ready to use.
Therefore, the digital transformation of companies entails the allocation of budgets for information technology: budgets that are not entirely fully consumed by IT though, but rather by all lines of business. In fact by 2020, Gartner predicts that marketing departments will spend more on technology than IT departments.
• Information technology must become a key skill
With leaders who need technology to create value for their services, skills related to information technology become even more critical.
It is no longer viable to have a handful of people in IT that support the needs of other departments, but important that every line of business has at least one person that combines IT-related skills with a business vision.
• Culture Change
As mentioned above, the transition from a traditional IT department model to a digital enterprise requires the redistribution of skills. A profound change needs to take place: to move from the vision of IT as a support function to one of IT as a growth engine completely integrated with the rest of the company.
2. Customer relationship aspects
• IoT (Internet of Things) and mobility
Companies are connected, individuals are connected, and now more and more objects are too. The Internet of Things and mobility are the two main tools to enhance the customer experience today in a multitude of sectors: retail, services in general, hospitality, health, etc...
The most important driver of digital transformation is undoubtedly improving the relationship and the experience with the customer.
• Big data and analytics
Companies more advanced in their digital transformation already exploit the data they collect through their various systems. Digital transformation is rooted in the value of structured and unstructured data, that is why it is essential to use it to:• Understand customers accurately
• Identify drivers of growth
• Develop new products or services
3. Technological aspects
Your digital transformation can only be successful by adopting technologies that support your strategies.
However, IT budgets are not infinite and therefore you must first be willing to reallocate resources to achieve your goals. In this context, part of the budget, which is traditionally dedicated to the operation and maintenance of the IT infrastructure, needs to be reallocated to innovation and growth projects.
In this context, the companies most mature in their transformation have virtualised their infrastructure and consume their applications as a services in a private or hybrid cloud. When it comes to a physical infrastructure, many enterprises turn to managed services, where a partner is responsible for keeping systems operational so employees can focus on initiatives to grow and create value for the business.
Keep in Mind
Digital transformation cannot be a "project" conducted in a silo with one or two departments, it is everyone's business. When it comes to a transformation of this magnitude, which occurs continuously, you must have a solid foundation to ensure the path to success.
It is always difficult to know where to start, especially when you live in the environment every day. That is why we support leaders in their digital transformation, helping them to first answer these three questions:
Why does your business need to change?
And in what areas of your business?
How should you proceed?
We commissioned a study which discusses digital transformation and how we can use IT as a lever for greater business success. We are offering to present it to you and the LOB leaders that would benefit from it. Click below to schedule your briefing.
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