By Shubho Pramanik
Digital-first approach rules the roost for enterprises in the current time.Technology as an enabler for business has changed its role to be the very core of most companies.Such a paradigm shift in approach to the application of technology is called digital transformation .In simplistic terms, digital transformation is the process in which technology is leveraged across businesses to drive fundamental change.Digital transformation comprises both digitization and digitalization.
While digitization stands for the process of converting data into digital form, digitalization uses various digital technologies such as cloud computing, artificial intelligence ( AI ), machine learning ( ML ), data analytics, and many more to change business processes.So, digital transformation brings fundamental change to an enterprise.This is beyond any individual project or department.For instance, a business can shift its entire IT system to the cloud or leverage AI to understand customer preferences, or use technology for faster product development.
Digital transformation, therefore, is not a cosmetic change but a shift from the traditional approach to doing things in an organisation.
Stay ahead of the curve:
The black swan event like the COVID pandemic has highlighted the importance of digital transformation across enterprises.While lockdown measures were taken to contain the spreading infection, digital channels enabled businesses to reach out to their end consumers effectively.This has accelerated digital adoption in multiple ways.According to a McKinsey study, the adoption of digital technologies has been accelerated by several years owing to COVID-19.
While the pandemic has expedited the agenda of digital transformation, there are also other factors driving this trend.Firstly, customer expectations are changing very fast.Rising internet penetration, social media usage, and the emergence of startups are prompting traditional businesses to change fast to withstanding the competition arising from new players.This, in turn, facilitates digital transformation among enterprises for defending against disruption.
Similarly, intense competition requires businesses to speed up their go-to market strategy along with customised products and services.This can only be achieved through leveraging emerging technologies like cloud computing, AI, IoT, ML, and data analytics among others.Also, enterprises globally are looking for increasing efficiency in their business processes, which can save both time and cost.
Digital transformation in the form of migrating to the cloud, and automation with sound customer experience (CX) have emerged as imperative for businesses.
Changing the core:
Given the importance of driving digital transformation in a company, the enterprise has to devise a strategy to achieve the intended objective.In this perspective, the business can follow a digital transformation strategy aligned to an ideal customer experience.Moreover, a holistic approach to digital transformation is desirable.So, transforming business processes that will not only be agile and efficient but also relevant to customers and employees will be part of any digital adoption strategy.Moreover, digital transformation changes all aspects of the business.So, a flexible approach with an open mind for the adoption of new technologies is a must for optimum result.
While digital operations are critical in any digital transformation process, a digitally skilled workforce will only determine the success of this operation.
So, the strategy for driving digital transformation should take into account the availability of a skilled workforce who can execute such a shift at ease.Alternatively, the business should choose the right technology partner with expertise in driving mission-critical digital transformation initiatives for implementing such a critical shift.Moreover, any fundamental change may lead to disruption in normal operations or latency.The strategy, therefore, should ensure that any change is implemented without disruption to normal functioning.
Lastly, changing the core to digital comes up with heightened cybersecurity risks.An enterprise should devise a robust cybersecurity strategy with secured endpoints for making the digital transformation initiative a success.Digital transformation initiatives will bring tangible outcomes with increased efficiency if there is clarity about their outcome.Any confusion on this issue will lead to shoddy implementation.
Globally, enterprises are spending billions of dollars on digital transformation initiatives.According to the International Data Corporation (IDC) survey, global spending on the digital transformation (DX) of business practices, products, and organisations is projected to reach $1.8 trillion in 2022, an increase of 17.6 per cent over 2021.Most spending is likely to happen in internal operations including IT infrastructure, it indicated.As digital transformation gathers pace, most enterprises have to integrate various technologies in a seamless manner to get the desired outcome.
To make the whole process performance-driven, the selection of the right technology partner is a must that can lead to both time and cost savings for the businesses.
The author is Senior Vice President at Applied Cloud Computing (ACC)
Disclaimer: The views expressed are sole of the author and ETCIO.com does not necessarily subscribe to it.ETCIO.com shall not be responsible for any damage caused to any person/organization directly or indirectly..
