What does digital transformation really mean?
Digital transformation is the integration of digital technology in all aspects of the business and by doing this, fundamentally changing the way the business operates and the way it provides value to its clients.
Apart from this, it’s also about cultural change. It is about the necessity for organizations to constantly challenge the status quo, to experiment and to think out of the box. This often means walking away from long-standing business processes in favor of relatively new practices that are still being defined.
The concept/term is quite overused these days which inherently creates some false expectations or misunderstanding. Some of them listed below:
The focus on digital creates the impression success is mainly realized via injecting technology whilst technology should not be the main starting point
The transformation should not be seen as a one-shot project but should be about culture change, new ways of working and continuous improvement
Some companies use the hype to market e.g. paperless office tools or transition to public cloud or… mainly zooming in on one specific aspect while in reality it could mean anything or could look different for every company
What are the challenges of embarking on a digital transformation journey?
Resistance to change in the organization: digital transformation, by its very nature brings quite some change. Resistance can come for various reasons: concerns about cannibalizing revenue sources, difficulties justifying, or funding projects as normal project cycle and approach does not apply, fear for job loss or job change, etc.
Lack of a clear vision and digital strategy. You need to start from a business perspective, set clear business objectives. Develop a digital strategy. Experiment broadly with technology but don’t do digital as an objective in itself
Speed: the speed with which some digitally enabled experiences thriving in consumer space are creating a new normal has