DIGITAL CULTURE & DIGITAL SOLUTIONS
According to global market intelligence firm IDC, worldwide spending on Digital Transformation technologies reached $1.3 trillion in 2017; forecasted to surpass $2.1 trillion by 2021. Why so much? #DigitalTransformation is fundamentally enabling businesses to get closer to their customers and thereby accelerating achievement of their mission through innovative, digital solutions.
"Out of the companies who ignored work culture during digital transformation efforts, only 17% saw improved financial performance. But, 90% of companies that did focus on digital culture saw incredible financial performance. Additionally, 80% of companies that prioritized digital culture sustained breakthrough performance.”
- Boston Consulting Group (2018)
COMMON QUESTIONS & IMPORTANT LINKS
Given the scale and imperative of these technology investments – along with the workforce responsible for evaluating and deploying these modernization solutions – leading executives no longer view IT as a ‘cost of doing business.’ Investments in technology – and technology professionals – are now recognized as transformational assets that enable these organizational leaders to reimagine and redefine their business value, while simultaneously improving the customer experience with enhanced data analysis, and data-led change. There is broad consensus that #DigitalTransformation is much more than simply enhancing your technology platforms. Organizations are developing a digital business strategy that includes modernizing the culture, redefining operating models, innovating product and service strategies and finally, developing and honing modern skills necessary to serve today’s digitally-savvy customers within a highly disruptive, technology-centric marketplace.
WHY YOUR DIGITAL TRANSFORMATION NEEDS A DIGITAL BUSINESS STRATEGY?
The purpose of a Digital Business Strategy is not to simply define the application of emerging technologies. Conversely, its purpose is to architect a revolutionary, data-driven design for improving the customer experience and mitigating disruptive threats to the enterprise. Aside from Amazon, Google, Uber and other known digital leaders, traditional companies are also successfully executing digital business strategies to reinvent themselves to remain relevant in this evolving digital economy –
Kaiser Permanente: 52% of their 100M patient visits are now virtual.
AIG: Implemented machine learning resulting in automation of >140,000 help desk tickets.
Home Depot: Created a digital retail channel; 7% increase in revenues without any new brick-n-mortar store openings.
GE: Integrated sensors in traditional products, now generating very beneficial data for its customers, and profits for GE; $6B in business line revenue, 20% growth from the prior year.
Everything But The House: Even “small business” is digitally transforming. This Ohio based auction company moved their estate auctions online and grew from $8M to $70M in less than 4-years.
Other Disruptive Companies: Check out these digital trailblazers – Disrupt100.
These initiatives are not isolated. According to Riverbed – a Gartner 2018 Magic Quadrant Leader – 77% of global decision-makers believe their businesses must actively invest in improving digital experiences in the coming years. Similarly, according to IDC, leading executives are forecasting that by 2020, 47% of revenues will be influenced by their #DigitalTransformation efforts.
These use cases and forecasts strongly validate the importance of fostering a #DigitalCulture across multiple departments and multiple teams, while developing vertical alignment throughout the leadership layers. According to most reports, #DigitalTransformation initiatives are most likely to fail when established organizations fail to assimilate to a #DigitalCulture, given the complexity of this transformation effort within legacy operating models.
WHAT ARE THE 5 MAJOR PHASES FOR FOSTERING A DIGITAL CULTURE?
Culture is the undercurrent of an organization. It provides the freedom to high-performing employees to make decisions confidently that help advance organizational strategy. Modernizing an organization’s culture to a #DigitalCulture is creating profound results in how organizations develop agility, attract talent, increase employee engagement, and deliver improved user experiences; faster. A #DigitalCulture will complement, augment, or reinvent an existing culture by accentuating focus on customer experience, digitized operating models, and an optimized workforce.
IMPLEMENTING A DIGITAL BUSINESS STRATEGY
Similar to other strategic plans, the key to a Digital Business Strategy is to empower your employees and the marketplace with a clear and thorough plan for delivering quantifiable business results – expanded value creation, improved customer experience, and a workplace that attracts key talent. Minimally, the Digital Business Strategy must include details about organizational leadership, capabilities and expectations of the workforce, redefining customer engagement, tools and technology modernization, and a formal communication and change management framework. This crucial phase will help establish the vision for change.
WHAT ARE THE 8 KEY AREAS OF TECHNOLOGY - ENABLED DIGITAL TRANSFORMATION?
#DigitalTransformation is a business initiative that seeks to enhance end-user experiences with modern technologies, tools and operating models. Most organizations are adopting several technology strategies, depending upon the desired business outcome, or expected customer experience. Learning Tree International has identified some of the typical technologies, and its purpose, associated with #DigitalTransformationefforts.
Web Technologies – Basic tools used to conduct web development and improve user interface.
Artificial Intelligence – Computer systems that perform tasks that normally require human intervention, such as audio or visual recognition, decision-making, and language translation.
Machine Learning – Machine learning is an element of artificial intelligence that employs statistical techniques that allows computers to dynamically learn from data, without the requirement of programming.
Chatbots – Computer programs that simulate conversations with customers over the Internet, or via phone conversations.
Internet of Things – Networked devices embedded within common consumer products – cars, electronics and home appliances – that send and receive data via sensors.
Cloud (SaaS) Migration – A common strategy to consolidate hardware expenses, improve operational performance and streamline administration, while delivering improved functionality and user experience.
Big Data & Analytics – Resulting from a desire to overhaul and improve data analysis from existing business intelligence, CRM, social media channels, and other customer data sources.
Cyber Security & Blockchain – Building and maintaining customer confidence is critical in a #DigitalTransformation. Implementing a modern security architecture, and the use of capabilities such as blockchain enable improved information-sharing within modern businesses.