The world is transforming digitally and heralding the era of the fifth productive economy, the intelligent big-data economy (IBE). This artificial intelligence-led change is accelerating the transformation of business activities, proficiencies and the business processes involved across the society. Crafting unequalled value creation and expansion opportunities, digitization is catalyzing an unprecedented revolution.
As per John Chambers, Executive Vice Chairman of Cisco, 40% of the companies that are seen today will not exist in the coming 10 years because of their inability to adopt Digitization. The proofs of the ‘data sprinkled’ organizations that are rewriting the rules of the business are all around us. According to a WEF report, it used to take Fortune 500 companies an average of 20 years to reach a billion-dollar valuation, but today’s startups are getting there much quicker: Google managed it in eight years while Uber, Snapchat and Xiaomi galloped in four years or less, partly through successfully harnessing digital technology.
Let’s look at 10 different strategies to leverage digital transformation:
1) Understand and leverage data
Data has been transformed into the new “crude oil” and real-time, massively connected big-data intelligence (RMBI) will be fueling businesses and driving monumental changes.
There will be $501 billion of wearable payment transactions by 2020, according to research firm Tractica. The information will remain merely a number lest a related industry takes concrete action on it. Google Pay and Apple Pay grabbed the opportunity with both hands and went into a tie up with MasterCard and Visa programs for enabling payments through various devices.
2) Structured approach to planning transformation
As a WEF report indicates, in 2005, there were just 500 million devices connected to the Internet; today there are 8 billion. By 2030, it’s estimated that the number will go up to 1 trillion. How will this growth affect the organization? The transformation journey begins by clearly understanding what digital means for the business to create a prioritized plan to leverage digital transformation completely. Having a clear understanding of the digital threats and opportunities will make the journey smoother.
3) Understand digital technologies and beyond
While the analog incumbents (big, profitable organizations that predate the digital revolution), struggle to cope with the colossal damage, it’s never too late to adapt. This is especially true when they have all the other necessary resources to wade through the other challenges. There is an imperative need to not just understand what technology is, but also analyze and realize the larger picture of what that digital technology means for the overall business.
4) Developing digital business models
According to Gartner, there will be 6.4 billion connected things in 2016, with an average of 5.5 million new things getting connected on a daily basis. Is your business prepared to make the most of this burgeoning growth? The organizations in the digital era will have to rethink how to spot, expand and unveil new businesses, whether they can enhance or transform their existing models, or whether they need to invent a new model. GE is a successful example of digital transformation with its structured approach aided with a strong digital approach that went top down in the organization and in a short span of five years rose to a formidable position in the industry.
5) Creating a visionary digital strategy
Companies need to develop an all-inclusive digital strategy and give a fresh thought and perspective to their business and operating models to keep pace with digitization, going beyond the marketing department. Following a culture of constant, iterative experimentation will make evolution profitable.
6) Investing in the right operating model
Change will have to be initiated into how a business model is delivered with careful examination of each and every operational aspect, ranging from introducing a digital operating model or adopting new technologies to finding operational efficiencies.
7) Cultivating organizational change
Digitization has changed how individuals think, learn and work; how people work in teams and in organizations will also change. This sea of change will bring about a shift in social structures and dynamics, blurring the space between humans, technology, systems and things and blend into an almost a unified gamut. How an organization is empowering employees through digital channels to enable faster decision-making and encourage greater agility within your organization will decode its future performance.
8) Extensive capability building
With a massive number of input devices that individuals and organizational systems need to interact with, the need to work upon capabilities assumes gigantic proportions. The ultimate competitive advantage of a country will be determined by the pace at which it develops the right range, quality and number of skills in its workforce, to reach and maintain a notable growth rate guiding the new IBE economy.
9) Find the right digital traction metrics
Industry researches indicate how traditional financial key performance indicators (KPIs) prove to be ineffective at measuring the success of a digital business. According to McKinsey’s Digital Quotient analysis, fewer than 15 per cent of companies can quantify the return on investment of their digital initiatives. Digital traction metrics are the call of the times.
10) Social is the way to go
Offering an outstanding social customer service will help an organization or a brand to get consumers to care or come back. Strategies need to be developed to demonstrate a sense of belonging and collaboration on the social platform as well.
With affordable technology paving its way across populace, scripting a success story becomes anybody’s game. But still the question arises, how? There are several institutions that offer programs related to digital transformation (DT). One of the programs launched by NIIT under the digital transformation series is Java Enterprise Apps with Dev Ops. The scope of DT holds tremendous opportunity.
Accepting the stark reality that is staring at us and working towards changing the basics of the business would surely aid in moving ahead with the digital transformation. And as it is said, it’s better late than never!