Digital transformation — the use of technology to radically improve performance or reach of enterprises — is a hot topic for companies across the globe
Thanks to digitization, companies across industries are racing to migrate “analog” approaches to customers, products, services, and operating models.
Some companies are redesigning their capabilities and operating models to take full advantage of digital technologies to keep step with the “connected” consumer – BtB and BtC. Others are creating qualitatively new business models – and tremendous value – around disruptive digital opportunities.
Managing digital transformation will decide which businesses will survive and which not
There is no debating it, becoming a digital company is difficult. Organizations face reams of change when facing digitization. But companies that don’t move in that direction, and move quickly, they will become a prime candidate to be disrupted them-self. Disrupt, or be disrupted.
Every company is a technology company. If the company don’t transform, the industry will be transformed
For those who still believe that digitization is about creating social media sites or developing a responsive website, here is the truth: Digital technologies will disrupt value chains, organizational structures, operational processes and revenue models. And they will change every industry and every company. Managing digital transformation will decide which businesses will survive and which not.
Consider how these digital organizations have disrupted industries:
- Uber – Digitized the taxi experience and transformed the transportation service industry
- Airbnb – A completely consumer-enabled and digital experience business model for hospitality
- Square – Revolutionized mobile payments that could disrupt banking and financial services
- Netflix – Traditional TV industry is been disrupted by “over the top” like Netflix
So the time has come for business leaders to answer four fundamental questions in order to secure their company’s future existence:
- How will digital disruption precisely affect our industry and business?
- How fast will it happen?
- Is our organization ready for the digital transformation?
- What are the essential next actions needed to redefine our company’s role in the digital world of tomorrow?
The real challenges of digitization is not technology
Smart organizations have recognized that introducing new technology into the workplace isn’t about hardware or software: it’s about wetware, also known as human beings. If companies want to be the kind of nimble business that can make the most of successive waves of tech innovation, they need human beings who can adapt to change.
The economy is disrupting digitally at a rapid pace and is impacting every function across the organization
Successful corporate digital transformations start with leadership embracing technology. This sends a clear message to the rest of the organization that the company is serious about implementing change. If digital transformation is done right, it starts at the top and moves down throughout the company.
Becoming a digital organization will require new leadership skills combined with connecting people, processes, data, and things.
An organizations culture plays a vital role in the digital transformation of a business
Building an organizational culture for a successful adoption of digital technologies, requires everyone in the organization, from leaders to front-line employees, to be prepared to work in an open and transparent way. It’s hard for an organization to undergo digital transformation if the culture is one built around silos. In cases like these, cultural change would need to be addressed before the transformation process could begin
Don’t let the digital transformation suffer from “The Titanic Disaster“. Titanic sank after colliding with an iceberg! Organizational culture is like an iceberg! The iceberg that sinks organizational change!
In digital transformation, culture change goes hand in hand with tech change
Corporate digital transformation is a process that impacts the entire corporation – Be prepared to face challenges!
But one thing is for sure: Digital transformation will fail without the right leadership.
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The real challenges of digitization is not technology — https://www.torbenrick.eu/t/r/fid
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About The Author
Experienced senior executive, both at a strategic and operational level, with strong track record in developing, driving and managing business improvement, development and change management. International experience from management positions in Denmark, Germany, Switzerland and United Kingdom