Myths and trends of digital transformation in 2018

You’ve heard of the Fourth Industrial Revolution. It’s probably the hottest topic for businesses, opinion leaders, legislators, scientists, and of course technocrats.

Klaus Schwab, founder and CEO of the World Economic Forum, which coined this term, writes: “The First Industrial Revolution used the energy of water and steam to mechanize production. The Second used electrical energy to create mass production. The Third used electronics and information technology to automate production. Now a Fourth Industrial Revolution is building on the Third, the digital revolution that has been taking place since the middle of the last century. It is characterized by a fusion of technologies that is blurring the lines between the physical, the digital and the biological spheres. “

He makes a very important and relevant point: “Neither technology nor the disruption that accompanies it is an exogenous force over which humans have no control. We are all responsible for guiding its evolution, in the decisions we make daily as citizens, consumers and investors “.

While digital transformation as a term is still misunderstood, today digital transformation as a business imperative is widely accepted. So what is a digital transformation in practice? Is it an IT project? Or the introduction of some interesting tools in the company? Or incorporating a mobility-driven customer relationship management (CRM) initiative to better engage customers?

As an organization, whether you are looking to embark on the digital transformation journey or trying to steer clear of it, there are still some myths surrounding digital transformation that you should avoid. If you want to lead your organization through digital transformation, the first step is to understand the realities of digital transformation, rather than getting carried away with advertising.

In this article we use excerpts from some prestigious industry white papers / reports to dispel some myths.

The reports / white papers we cite include:

• World Economic Forum (WEF) White Paper on Digital Transformation of Industries: Digital Enterprise, developed in collaboration with Accenture
• Forrester Report, The Digital Business Imperative, co-authored by Martin Gill and Nigel Fenwick
• Digital is a fad; a trend my business doesn’t need to think about
• digital transformation process

Digital has transformed the market context for all businesses and the pace of change is accelerating.

The WEF White Paper says – There is widespread recognition among leaders in most industries that the role of digital technology is changing rapidly, from being a driver of marginal efficiency to an enabler of fundamental innovation and disruption. Digitization is the cause of radical and large-scale transformations in multiple aspects of the business, providing unparalleled opportunities for the creation and capture of value. Business leaders in all sectors are grappling with the strategic implications of these transformations for their organizations, industrial ecosystems, and society.

Digital transformation means exceptional customer experiences powered by new technologies

Digital has impacted not only channels and customers. It is altering organizations from within, changing the way they do business. Digital brings new opportunities for organizations that can adopt technology quickly enough. Accelerate time to market, lower costs, and unlock new revenue streams.

Forrester Report says: Digital business is not just about the customer experience; it’s also a way to boost operational agility. Digital operations can increase speed to market, make employees more productive, promote more efficient processes, and maximize asset utilization.

Let me create an application. My digital transformation is done.

Digital transformation is not about introducing some tools that are designed to change a particular facet of your business, be it employee collaboration or customer transactions.

The Forrester report says:

• Digital fundamentally changes your relationship with your customers. You can’t address this change with a comprehensive digital strategy that adds an app here or a site there. To stay competitive, you must redesign how your business creates value for your customers in the digital age.
• Re-envision your business not as a set of products and services, but as part of the ecosystems of personal value that your customers assemble according to their needs and wants. Learn how to increase value by expanding your company’s role in your customers’ personal value ecosystems.

Digital transformation can only happen through disruptive technologies

Every digital transformation exercise does not need to take the examples of Uber and Airbnb in terms of the use of emerging technologies. The technology stack you would use depends on your business context and technology leverage is only one part of the digital transformation. Sometimes you can achieve significant productivity improvement, agility, and customer focus by using proven operational technology (networks and databases) and strategic technology (enterprise resource planning or customer relationship management). or mobility.

The WEF white paper says: A truly digital business means more than using new technologies for the sake of doing it. Rather, what really sets a digital company apart and gives it its competitive advantage is its culture, strategy, and way of operating. Digital companies continually strive to enable new and more efficient operating models supported by agile business processes, connected platforms, collaborative and analytical capabilities that improve business productivity. A digital company tirelessly seeks, identifies and develops new digital business models, always ensuring that customers and employees are at the center of everything it does.

Digital transformation: I need to do this this year so as not to be left behind

Digital transformation cannot and does not have to be a sprint. It is a long journey with multiple points of contact and milestones; dependencies and synergistic efforts.

Forrester Report says: You need to transform your business by applying digital thinking to everything you do: how you earn, serve, and retain customers; how it operates its internal processes; and how you obtain business services.

For example, your answers to the following questions alone will help you build a roadmap that takes digital transformation beyond the realm of IT.

Business success of digital transformation

• Have you identified areas in your business where automation is most relevant?
• Is your current workforce constantly improving productivity and quality?
• What steps have you taken to convince your investors of your digital vision and long-term value creation from your digital transformation journey?
• What percentage of your income comes from new digital business sources?
• Does your business leverage analytics around customer data, operational data, and compliance?
• Do you have a digital-savvy leadership team?
• Have you established training programs to bridge the digital skills gap and retrain your existing employees?
• How are you empowering employees through digital channels to enable faster decision making and foster greater agility within your organization?

These are just a few of the myths we have tried to address. We invite you to share your opinion on these and other myths.