Digital transformation is now an essential means of doing business without which organizations will not be able to stay afloat in the changing market landscape. The current pandemic has further accelerated digital transformation across industries and with various new technologies like Artificial intelligence, IoT, Robotics, 5G, and Augmented Reality being increasingly adopted to deliver unique customer experiences, it is the future.1 But while the opportunity is significant, so is the urgency and pressure to capitalize on it.
Success really depends on the ability to create the right digital experiences and invest in relevant digital capabilities that are well aligned with the strategy and not done as an isolated effort. Many companies have seen their digital transformations stall or fail to deliver the expected results owing to fragmented efforts, legacy technologies, insufficient capabilities, or other factors. For those who get it right, however there is a 2x possibility of being chosen as the primary supplier by customers and increase revenues.
In order to gear up for this new normal, it would become necessary that you embark on a more robust and planned Digital engagement model with your customers. New sources of value can be created by combining the product based models with information based services. What will it take to compete going forward? What would be the new business model?
We believe that there are 3 critical areas where digital transformation can be a game changer:
Data and advanced analytics is the bedrock of successful implementation of each of the above. Capturing, analysing and utilizing the immense amount of data that is being generated places you at a great advantage versus competition. So, while you think thru which of the digital transformation areas to pursue, managing data as a business asset and building the right data capabilities are essential to materialize the gains. An added benefit is the ability to make better decisions about a broad range of activities linked to generating additional revenue and/or reducing costs.
Digital transformation needs the focus and active support of the CEO’s, without which the initiative is certainly set up to fail. How do you begin to shift from just thinking and talking about digital to practically and strategically moving forward? The key questions to reflect upon are:
Will you be caught up in a legacy trap just focused on replicating past success or be amongst the leaders able to see the opportunities and act decisively on it? There is an urgent need to sense and shape this new digital reality speedily. In fact, it is mission critical!
1. Refer our earlier insight “Recognizing Macro Trends” for more