Digital Transformation – A race for the future
The Need
Open markets and Digital technology have triggered a rapid transformation in doing business over the last few decades. The mystic and unimaginable reach could have never been possible if the companies haven’t adopted Digital Technologies at its core. Be it Amazon transforming the publishing industry and retailing business, or Facebook, transforming the communication lines and print media, these companies have imbibed proven strategies in adopting digital as their core business driver. These Digital companies disrupt many industries’ market space, compelling traditional industries to transform their business digitally or open up new collaborative paradigms to continue their influence.
Digital Transformation is not a mere conversion of business processes to digital. Instead, it is all about embracing digital as the key to unlock the organization’s survival in an ecosystem of increased competitive pressure and customer demands. Also, it’s not about just digitalization but about rethinking the business models and seeking new paradigms. Transformation is a journey that includes people, processes, and technology. It’s an essential part of business strategy right from Small scale to global industries in the current era. Any Industry – BFSI, Manufacturing, Hospitality, Health. Educational, Media, or FMCG should essentially rely on Digital Technology as their enabler to flourish and survive the market. The transformation increases operational margins, identifies new avenues, and enlarges profit pools.
The Approach
Mapping the benefits of digital models to the strategic goals helps determine the required rate of the transformation. Having a clear vision, matching objectives, well laid-out priorities, proper communication, and key performance indicators could help realize and motivate success through every step in the journey. A Globant report identifies that more than half of the companies feel outdated compared to competitors. As per an HBR study, only 20% of respondents rate their transformation strategies as being effective. However, 70% of them rate the need for change as significant. The drive for digital transformation has intensified, but the gap between the objectives and the execution hasn’t narrowed enough.
An efficient leadership that facilitates employee-driven initiatives towards transformation helps to experience its potential throughout the organization. Every step in the transformation should extend its bounds to include more people, processes, and technology. The transformation doesn’t only happen internally, but leading people through the transformation is an essential ingredient of any such initiatives. It’s an inclusive growth that takes customers along with it in its journey.
The Journey
Consumer Experience
BestBuy rolled off its price matching program and switched its focus to advising customers, not just selling to them. Home Depot tracks local trends and ensures the right items are in stock without losing money on excess inventory. It also added visual and voice search to its app to give customers more options. Instead of selling through other vendors, Nike started selling more directly to customers and partnered with Amazon for its e-commerce.
Operational Excellence
The core smelting process, dependent on Hall-Héroult process invented in 1886, hasn’t changed remarkably over the last century even though its variations exists. Aluminium prices are still under pressure where the prices have halved over the last 10 years, but the production cost only reduced by 30%. Such Metallurgical industries that run on high temperatures and extreme voltages rely primarily on innovative and emerging technologies to improve efficiency and enhance performance standards.
New Models
With a new wave of payment systems, including PayTM, Google Pay, Amazon Pay, Pay Pal, Apple Pay, the goal of Financial Inclusion in developing countries is reaching its objective faster. Of course, this wouldn’t have been possible if the initiation didn’t consider including the people in their transformational journey. Volkswagen brings impressive features to stay ahead in the competitive landscape by introducing new innovative services such as WeShare – a car-sharing sharing platform, parking friendly apps, and package delivery services directly to your car.
The Destination
Unlike other journeys, this journey doesn’t end but races ahead with innovations, technological advancements, radical changes, fundamental shifts that necessitates a new norm of continuous evolution characterized by multiple transformation levels.