When IT innovation is adjusted perfectly to a good business strategy the result is successful Digital Transformation. The goal of any digital transformation is in fact, to transform the way the organization serves customers as well as partners and employees with the continuous improvement in operations resulting in new business and business models.
The digital journey demands companies to be agile and to give greater importance to the role of analytics in order to improve customer and employee experience. However, this journey is not simple and as complex, as it is, it should be holistic, touching the entire organization from top to bottom. It is more about giving a new shape to organizations’ culture, IT operations and business processes around innovative technologies.
A Forrester research showed that the top digital transformation initiatives were: accelerating innovation (81%), modernizing IT infrastructure (80%), and improving operational agility (79%). Businesses that are mature in terms of digital transformation, still find challenges at a cultural and organizational level since competing departments want to be the drivers in this digital journey. Digital Transformation is more than just adopting social media or analytics, it is a journey which makes brands learn faster and be more adaptable, it is a process that transforms organizations making them more agile in their processes and systems.
According to Altimeter’s research, just 29% stated they have a multi-year plan to guide their digital transformation. The research also found the reasons for organizations to turn to a digital transformation strategy: 81% of them stated that innovation leads their agenda right after innovation, they included modernization of IT infrastructure (80%) and third was the place operational agility improvement with 79%.
But, what are the motivators of a digital transformation?
451 Research found that business intelligence, agility, and customer centricity were the key motivators of a digital transformation. Today’s businesses depend on generating insights from data to create a better customer experience and be more informed to make business decisions. Furthermore, today’s customers are demanding personalized experiences and want to communicate with brands instantly and via multiple channels.
These demands, make it imperative for organizations to be digitally transformed in business processes, technology platforms, and information usage. Hence, digital transformation needs technological and cultural changes to be adopted within the organization. These changes can affect entire departments, for example, the IT department can adopt agile DevOps methods; or they could signify the adoption of new collaboration tools such as Slack. Most companies are in the early stage of their own digital transformations, however, smaller companies may find it easier than bigger organizations because they are more agile and have less bureaucratic processes.
Summing it up, digital transformation means reshaping the culture, IT operations, and business processes of a given organization around new technology. This could include social, analytics, cloud, mobile, IoT and VR/AR to be able to engage better with customers and to streamline processes within the organization.
Stay tuned to the next article in which we will discuss the role of DevOps in digital transformation.