While the desire to digitally transform business operations is raising competitive pressures, ‘a divide has emerged between those firms successfully transitioning (digitally determined) to digital transformation from the laggards (digitally distraught) struggling to achieve their goal.’
The survey notes that ‘these challenges manifest themselves only after an organisation begins its digital transformation journey — while organisations are running digital projects and making progress, they are not advancing toward the overarching goal — to digitally transform the overall organisation.’
Digitally distraught: It’s not a terminal condition!
All over the global economy, executives are investing in digital transformation only to be disappointed by the lack of a coherent strategy and measurable outcomes. Even the most operationally competent firms are beginning to realise that ‘digitalising the organisation’ to achieve business transformation requires a different arsenal of tools and technologies.
In many ways, digital transformation tools resemble more conventional operational tools that have served technology and business leaders well over the last two decades. But companies cannot limit themselves to creating a better version of the past if they want to respond to a fast evolving market. The tools that helped them get where they are today aren’t going to get them where they need to be tomorrow.
The 3Ps of digitalisation
The journey to successful digital transformation begins by recognising the core capabilities that companies need to consider if they are to approach this process holistically. These ‘digital enablers’ form a transformative framework that can assist organisations lacking a coordinated strategy through a methodical and coherent journey.
This framework is made up of three building blocks:
Pathways: Innovation capability
Successful business transformation begins when organisations identify avenues to drive innovation through their operational processes. When innovation is lacking, transformation journey become exercises in cost reduction and automation. Implementing digital solutions without innovation rarely achieves anything because organisations that want real change must adopt a pathway to innovation, selecting technologies and tools that are at the heart of a considered strategy.
Platform: Operational excellence
While innovation helps leverage new digitalisation solutions, the planned outcomes cannot be achieved without effective process transformation. This requires a deep understanding of how these digitalisation tools and technologies work and apply to internal processes beyond automation and efficiency. These are foundational changes that create platforms for transformation such as adopting an enterprise-wide cloud computing architecture or programmable networking technologies. These platforms will deliver operational excellence and continuous regeneration in the face of change.
Playbooks: IT excellence
It is no secret that mastering information technology as the engine of business transformation is critical to success in the digital economy. Organisations must elevate IT as an essential change agent and strive for excellence to ensure agility in the marketplace. Playbooks or digital use cases offer clarity around the best mix of tools and technologies that can deliver optimal results in a short time. Acting as recipes for digital transformation, they represent best practices honed from real-world testing and actual application in industry.
Conclusion
Disruptive business models enabled by the latest technologies are already transforming industries and markets.
The companies that are prepared to approach innovation, digitalisation and business transformation will require a well-equipped toolbox of strategic transformation tools that can guide their organisations along every step of the journey.
Tools that offer pathways, a common platform and strategic playbooks showcasing the best approaches to effect change in the organisation. Selecting the right tools therefore is essential in their digital transformation journey to achieve the desired outcomes.
Speak to us to learn more.
[¹] Digital Transformation in the Intelligence Economy - An IDC whitepaper commissioned by Singtel
