Digital transformation has become an indispensable part of every organization. Read on to know the various aspects of digital transformation in terms of its priority and strategies…
In this digital age when digital transformation has become the C-suite agenda, several organizations are still finding it challenging to understand how to begin the process. One of the crucial challenge for every IT leader is understanding top priority from crucial aspect — in other words separating the tactical from the strategic. One of the key question to be answered is — where should IT leaders be focusing their attention?
Among the competing technology trends that are driving technology adoption is the digital transformation. It is an approach that allows businesses to solve traditional problems with technology and, in doing so, integrate it into every area of operations. In several ways, it is not new — most of us know this with the most crucial recent example being the cloud. For several of us, the tipping point for the cloud arrived some time ago, when investing in the technology became both critical and top priority.
Digital Transformation Era
In the age of digital transformation, organizations are embarking on a new wave of technology investment to improve everything from internal operations to customer service. And these investment levels are not tinkering around the edges of traditional expenses as they are massive and sustained. IDC recently updated its forecasting of worldwide digital transformation spend, predicting that it will reach an eye-watering $1.97 trillion in 2022.
Business & Software
Every IT decision makers and business leaders should understand the value of digital transformation, and take up the challenge to convince executive boards to take on vast process changes. The challenge is that organizations are not moving fast enough on their software journey. Convincing customers with rich and frequent releases of your products will be delivered — or at the very least enabled — by your approach to software delivery. But businesses do not have three years to make an incremental transition to embracing digital transformation and building a future based on software. It is perhaps more practical, therefore, to consider just how important software is to the future of your business and your Industry. The mindset for almost everyone must be that every business is now a software business.
What Is crucial is that there are technology based software businesses that have disrupted traditional Industries on a massively successful scale, and there is a lesson there for every other business operating in the digital economy.
One of the area to focus on in the digital transformation journey is cloud. Cloud spend has seen an exponential increase in recent years. For service providers, a cloud presence is almost a must-have as it also drives innovation. Cloud technology is of particular value to chief financial officers (CFOs) since it can help them achieve digital transformation at a fraction of the cost that was prevalent a couple of years ago.
Digital transformation does not mean embedding deep tech as a panacea for poorly designed processes. For instance, Machine Learning (ML) requires high quality of data. Poor quality of input data is a major hurdle to the accuracy of the outcome. Machines can predict the best course, but ultimately, humans will be responsible for timely action.
The digital technology setup remains inconsistent and fragmented across Industries. Hence, the proverbial early-mover advantage may still be applicable in parts. Inspirational leadership is about taking decisions which are data-driven, even if it goes against ‘gut feeling.’
Transformation cannot happen overnight and this brings us to change management. Re-skilling the workforce, running a two-speed organization, adopting the right technology and creating a culture of co-creation, are all within the realm of change management. One can argue that it’s easier to lead standing on solid ground than on a shifting landscape. While the latter is characterized by high risks, if handled well, it can also be the lever to gain great momentum. Leadership in a dynamic environment is not only about building a learning organization, but enabling the unlearning process just as effectively.