Digital is disrupting all the aspects of the business. Companies can now engage consumers in a meaningful conversation. Moreover, digital has made transactions and other related processes more transparent. Oh wait – there is more. One of the biggest impact of digital is that it has lowered the barriers to entry. As a result, startups and companies with nimble operating models have threatened established business models and have radically addressed consumers’ unmet demands.
All these have forced established companies to launch digital transformation with an ultimate goal to improve performance. However, before a company launch a digital transformation, it must clearly define whether it is planning a change management initiative or a digital transformation. Change management deals with incremental change
s that make the same thing better, efficient, or faster. In contrast, transformation deals with fundamentally changing the way of thinking and working. In transformation you are greatly changing a company’s strategy, its culture, organization design, and the way of doing things.
Digital transformation begins with integrated business-digital strategy and digital roadmap. To bring out a successful digital transformation you should focus on three critical questions:
- How are you going to deliver a state-of-the-art customer experience (customer engagement)?
- What will your business model be like (this will impact digitized solutions you are going to offer)?
- What operational changes do you have to make to support digital transformation?
One thing you need to remember is that these questions don’t weigh equally and their answers vary by your industry, adjacency, competitors, and your company’s vision. Also, you must identify clearly defined targets of success and leading KPI to keep the transformation on track.
Have your say: ashok.bhatt@freshwaters.co
From the desk of Ashok Bhatt 