Digital Transformation

  

what business Digital Transformation

Digital transformation is the change associated with the integration of digital technology into all areas of a business, deeply changing how it operates and delivers value to customers. What it means by transformation is that digital adoption enables new types of innovation and creativity in a certain domain, rather than simply enhancing and supporting traditional methods. According to author Greg Verdino, digital transformation “closes the gap between what digital customers already expect and what analog businesses actually deliver.”

Digital transformation also entails a cultural change, requiring organisations to constantly challenge the status quo, experience, and get comfortable with failure. Sometimes this means steering the boat away from long-standing business process that companies were built upon to try new practices that are still being tested. Therefore, digital transformation entails questioning traditional methods in favour to new revolutionary practices.
Whether a business is small or a leading corporate, digital transformation (DT) is essential for its survival this day and age. Every study, keynote, panel discussion and report related to how businesses can remain competitive and relevant as the world becomes increasingly digital agrees with this statement, that digital transformation is vital for a business to stay afloat.
Why is digital transformation important?
The most important reason for a business to undergo digital transformation is to survive in the current market. In a contributed article for The Guardian, Howard King said, “Businesses don't transform by choice because it is expensive and risky. Businesses go through transformation when they have failed to evolve,”
Meanwhile, CIO of Vanguard, points out, “Just look at the S&P 500. In 1958, U.S. corporations remained on that index for an average of 61 years, according to the American Enterprise Foundation. By 2011, it was 18 years. Today, companies are being replaced on the S&P approximately every two weeks. Technology has driven this shift, and companies that want to succeed must understand how to merge technology with strategy.”
The IDC research “FutureScape: Worldwide Digital Transformation 2018 Predictions” stated, “By the end of 2019, digital transformation (DX) spending will reach $1.7 trillion worldwide, a 42 percent increase from 2017.” This won't be that easy, however, as IDC's predictions for CIOs in 2018 report, “Through 2019, dragged down by conflicting digital transformation imperatives, ineffective technology innovation, cloud infrastructure transition, and underfunded end-of-life core systems, 75 percent of CIOs and their enterprises will fail to meet all their digital objectives.”
What drives digital transformation?
Technology is the main factor propelling digital transformation forward. However, this process also involves ridding the company of outdated processes and legacy technology. In the healthcare industry, for instance, in spite of the popularity of mobile devices among healthcare providers, “close to 80 percent of clinicians continue to use hospital-provided pages and 49 percent of those clinicians report they receive patient care-related messages most commonly by pager.”
According to research from Forrester, CIOs spend two thirds of their budgets on existing IT concerns, while only one third goes to new projects and innovation. For businesses to evolve this day and age, they must adopt technologies that allow them to boost efficiency. Automation technologies may also enable IT organisations to gain speed and reduce technical debt.
HR and business leaders plea for digital inclusivity
The controversy that has stemmed from Facebook mishandling personal data over the past few years has prompted HR and business leaders to plea organisations to ensure the digital revolution is both inclusive and ethical.
After revelations concerning the alleged misuse of up to 30 million individuals' profiles fuelled an ongoing debate about digitalisation, CIPD chief executive Peter Cheese we are witnessing a fourth industrial revolution that brought with it new responsibilities. He added he things Facebook personal data issue has triggered a moment that “made us realise we need to read the T&Cs and know what's what.”
According to Cheese, there is a large number of the global population are playing out their whole lives on social media without thinking about the consequences. “Regulation has a role to play but it will never solve the problem on its own,” he added.
Chief executive of Business in the Community said, “My plea for digital inclusivity is that we should all fervently pursue humanity in the face of advancing technology.”
Cheese agreed that the digital revolution has changed many jobs and stripped the humanity our of business. He said, “I strongly believe that we can design jobs that make the best of things for people… that we can upskill and reskill them so that people don't get excluded.”

 

up Top