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What is Digital Transformation

Today every System Integrator whether small or big talks about digital transformation. Not only the system integrator but thanks to corona every organization is hooked on to digital transformation bandwagon. Digital transformation is generally been construed as doing things online and facilitating employees to work from home. Therefore digital transformation have only achieved the first part of digital transformation. But this is just the tip of the iceberg. Organization which have understood the meaning of transformation have leapfrogged ten times.


Digital has been more related to digitization, which means what you were doing on piece of paper is now being done online or through mobile app. You continue with the old sets of messy process and each process is driven by the stakeholder be it sales or marketing which limits business scalability.

There are four basic transformation principal every organization should consider to become an exponential organization.


Domain Transformation

It can be defined as a transformation initiative that results in an organization changing its core business model and value proposition and not just its technology or process change. It is product innovation and a major shift from “do more with less” approach to continuous improvement to gain competitive advantage through differentiation across every dimension of the customer experience. This requires use of disruptive technologies like cloud computing, AI, AR/VR, blockchain etc to transfer the domain business. Airbnb is the perfect example of Hotel domain transformation or Spotify transforming the music industry domain.


Cultural Transformation

This is one of most difficult transformation and need to start with the leader who sees value in more agile, collaborative and open environment culture within the organization. Culture transformation requires understanding of how people work and how they share information. Culture transformation will require inside out methodology. Workshops need to be run to make the employee feel that they are not only part of transformation but they are the catalyst of transformation. Once this is understood, they will not only adopt technology, but will bring new use cases of transformation. This is not technology, nor process, but human psyche and hence requires very delicate handling.


Process Transformation

The process transformation harness new technologies to transform the way an organization work to better serve customers, employees and even the partner ecosystem. This begins with a thought of cross-process optimization and is built on customer journey maps cutting across multiple departments. Individual department barriers are dismantled and the focus is shifted to optimization of end to end process rather than department specific silo of process.


Business Model Transformation

This is different than domain transformation, as we are modifying the existing business model to gain competitive advantage. We can look at monetizing the data we have or using the data to create more opportunities like cross sale of product. Companies moved from on premise licenses to SaaS license to maintain and manage their cashflow. Company’s changing from selling of properties to leasing to generate continuous source of revenue. Therefore, corporations can achieve a renovation that leads to significant new opportunities for growth by reinventing and adding to their current model for success. And this is one of the biggest reasons why more companies should give it a try and follow a similar path.


Conclusion

The complete digital transformation requires awareness amongst the employees and their participation as torch bearer of transformation. It also requires strong commitment from management, who are ready to take calculated risk and a strong technology architecture for scalable product development. This allows cross pollination of employees within the organization and sense of ownership.


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