DIGITAL TRANSFORMATION

Digital Transformation

Digital economy is not a new concept but it is already being evolved into something new which comes with its own opportunities and threats. According to one study, 75% of companies listed in S&P 500 will loose their place in the list within the next 15 years. Another report says that the rate of industry leaders loosing their top position has doubled. Digital disruptions resulting from ever increasing use of mobile devices, social media, cloud services, iot and the app-ization create unprecedented challenges for CEOs.

Although most CEOs are experts at change management, digital transformation requires quite a different approach, one that needs more depth and width. This is also supported by a study that has found at least two thirds of digital transformation efforts result in failures. Therefore, it is important to answer questions like the below before starting a digital transformation journey:

• What kind of transformation are you after?
  • A system upgrade (doing the same thing better/faster/cheaper)?
  • An operational transformation (doing the same thing in a different manner)?
  • A strategic transformation (doing something different leveraging existing business)?
• Will the transformation be enough to maintain competitiveness?
• Are top executives bought in – how about the team (successful DT must be driven from the top)?
• Is your Digital Transformation Team correctly placed in your organization with the right skills?
• Are you aware that DT is not just about technology?
• Are you willing to share benefits of DT with your customers?
• Are you aware that DT is not a one-time project but an ongoing process?

Aside from the popularity of disruptive technologies, most organizations still have to figure out a roadmap for a successful digital transformation. Phases of such a roadmap are provided below:

• Organization blueprint (business models used, inventory of assets…)
• Digital strategy (co-create with external business network, new business goals/models, …)
• Digital business blueprint (enterprise architecture, IT portfolio capabilities, roles, …)
• Implementation (quick pilots)
• Execution
• Track- progress of digital business-KPIs