What is Digital Transformation to you?
Google the words ‘Digital Transformation’ and the results will be more confusing than when you started. Here are some examples of what you might find; Platform, Mobile App., Digital Marketing, Company Culture, Supply Chain Optimization, e-payments, etc. And the list goes on.
I would like to categorize Digital Transformation into two distinct categories; Start-Ups and Established Corporate. The start-up platform is an idea that was born out of necessity by someone outside the corporate world, in the garage so to speak. The idea was dreamt when a certain problem was analyzed and a solution was created; examples include AirBnB & Uber. The idea was disruptive and destructive at the same time, redefining a well-established industry from the ground up. On the other hand, the Established Corporate Platform is not necessarily disruptive or destructive, it is a platform that was created to solve or improve on an existing process or concept; examples includes the AI & IoT technology utilized to improve maintenance schedules and procedures at factories or power plants for instance, or improvements in the warehouse optimization such as at Amazon, or improvements in the home automation industry.
The bottom line is that Digital Transformation is not things to come, it is already here. Many industries have already discovered how to transform and benefit from this 4th industrial revolution, only each industry and each company choses a unique approach. Why? Because simply you can’t transform every component of the existing company or an industry together at the same time. Within each company usually exists the basic departments; Accounting, Supply Chain (Procurement / Inventory / Sales), possibly Manufacturing, Customer Service, After Sales Support, Logistics & Transportation, Management and Administration, HR, and so on. When it comes to an industry, you will face external forces such as Industry Standards and Compliances, Technical, Legal and Financial. So how do we do it?
Microsoft says “Digital Transformation is about reimagining how you bring together people, data, and processes. A Digital Transformation strategy that focuses on these three pillars will help you to create value for your customers and maintain a competitive advantage in a digital-first world.”
Accenture says “Digital Transformation is re-imagining the human experience. It is remaking how people live, work, play and connect. Everything is being rethought, simplified and improved—even things people have taken for granted throughout their lives.”
Deloitte says “Digital Transformation is the use of technology to radically improve the performance or reach of an organization. In a digitally transformed business, digital technologies enable improved processes, engaged talent, and new business models.”
In short, Digital Transformation at Corporates does not mean a complete redo. It takes a certain area of the ecosystem and thinking of new out of the box ways to improve them, then slowly start including other departments as the data takes you.