The digital age has changed how we work, play and live, paving a way for companies to grow and create value for themselves in the market. A recent IDC report said worldwide spending on digital transformation technologies hit $1.3 trillion in 2017.
Digital transformation involves a combination of steps a company must take. First, CIOs need to understand the existing system and identify the challenges that come along with it. To heighten the possibility of upgrading the system, they must focus on how to balance the shift and the aftereffects.
As every company differs in their management and values, it is important to create a specific formula on the basis of that, so maximum benefit can come out of it.
However, most of the enterprises tend to take steps that will bring out just half of the outcome. This is because they focus on just digital strategy and not on how it will compliment the future business model.
One shift that will help companies overcome this issue is by moving from a packaged software provider to a digital service provider. This will accelerate the rise of market value and decrease the pressure of not being able to compete with other companies who have implemented the same.
Another driver of digital transformation focuses on creating the utmost customer experience.
In a recent study called “Era I” it was found that 84 percent of enterprises say their organization has gained more market sales when customers are being taken care of individually.
Communications technology must be prioritized for companies to witness growth in sales and services. The ability to deliver a unified, omni-channel and personalized customer experience is the ultimate goal.
CIOs role in digital business
Deloitte’s latest CIO survey says that 44 percent of CIOs are neither actively involved in developing nor executing their organization’s digital strategy, even though digital strategy is an increasingly critical part of business strategy.
“Every company is a technology company, so it’s critically important for CIOs to know and partner with the entire business, be involved in enterprise strategy and cooperate closely with corporate boards. Those that don’t will struggle to adjust to technological change,” Kristi Lamar, managing director and experience leader in Deloitte Consulting’ CIO Program and co-author of the report, said.
“CIOs need to be deeply involved in both developing and executing digital strategy and transformation, from planning the initial investment to deliberate adoption of technologies,” said Khalid Kark, US CIO Program research director at Deloitte.
Digital transformation deals are driving the business of tech companies such as IBM, Cisco, HPE, Oracle, Juniper, Google, Microsoft, Dell EMC, Huawei, among others.
197 of the Fortune Global 500 companies and 45 of the top 100 enterprises have selected Huawei as their digital transformation partner, said Derek Hao, president, Huawei India Enterprise Business Group.
Huawei has offered cloud computing services for more than 4,000 customers in over 144 countries and regions, covering government and public utilities, carrier, energy, finance, transportation, manufacturing, media, healthcare, education, and many other industries.
US-based technology giant IBM has adopted DX in recent years. Their goal of achieving this transformation involves TA leaders who engage with their executives to understand how the company is investing in technology, be it AI or cloud.
They also focus on the core components for digital transformation by integrating multiple services using API tools. These tools, when moved to the cloud help to expand services, hence creating and delivering new digital services to customers around the globe.
Other issues concerning risks of non-compliance and system failures have also been taken into consideration. IBM maintains this by having a general control over every sector, rather than just focusing on one.
IBM also offers IBM Cloud Private as a software package for startups and other companies who want to excel in digital transformation.
A survey by Gartner states that 62 percent of company executives had a management initiative or transformation program to make their business more digital. This comprises reinventing existing business tools and upgrading business models and processes.
SAP’s recent study Digital Transformation Executive states that 96 percent of over 3,000 interviewed executives say digital transformation is a core business goal and 84 percent of them say that it is critical to their survival in the next five years.
Hence we see that the reinvention of an organization through digital transformation is a priority for businesses to improve performance. In order to adapt to the technology and processes needed in today’s digital world, the companies must understand that customers now expect to have what they want, when they want it, and their transformation must adhere to that.