TSP • @myTSPnet
As digital technologies continue to dramatically reshape every industry, many companies are pursuing large-scale efforts to capture the benefits of these trends or simply keep up with competitors. Digital transformation is the application of digital technologies to improve the performance or reach of a business and it will continue to be an important topic for companies across the globe in the coming years.
Executives in all industries are using digital advances such as data analytics, mobility, social media and smart embedded devices to change customer relationships, internal processes and improve business. Although there are arguably many more, below are some key areas to embrace digital transformation.
BIG DATA ANALYTICS
The term “big data” first emerged fifteen years ago to put a name to the increasingly large, diverse and complex volumes of data that could not be easily managed by traditional data management practices. This data allows companies to make meaningful, strategic adjustments that minimize costs and maximize results.
Large amounts of well-managed data will deliver a better understanding of operations, customers and markets when integrated within an analytics or AI program. A digital transformation is not complete unless a business adopts big data.
Social media, mobile devices, big data and cloud computing are revolutionizing the industrial landscape of communication and collaboration. Digital transformation is a new dimension of change management as organizations strive to understand, assimilate and deliver new digital strategies.
Machine learning is the study of computer algorithms that improve automatically through experience. It is seen as a subset of artificial intelligence. According to a recent survey, 28% of companies have some experience with AI or machine learning and more than 40% said their enterprise IT personnel do not have the skills required to implement and support AI or machine learning.
Cloud computing is the foundation for the new agile business world — it’s the platform that enables application development. Cloud-based infrastructure is key for delivering flexible, on-demand access to the resources underpinning these digital business offerings.
As businesses embark on journeys to digital transformation, they must also make cybersecurity a top priority. Organizations need to maintain integrity, confidentiality and availability of data in many contexts: on-premises, in the cloud and in hybrid environments. Both the value and the volume of data has never been higher, and endpoints are more vulnerable than ever.
Mobility is an essential facilitator of digital transformation. However, when it comes to enterprise mobility management, there is a lack of strategic planning among many businesses. Organizations are focused on the broader digital revolution for improved revenues, profits and efficiencies, but few are prioritizing mobility management in their plans. Mobility management ensures that smart and connected technologies can eliminate friction in the business process.
GATHER RESOURCES AND EXPERTISE
Digital transformation requires expertise and often a team of people to keep the organization on track. There are a few different avenues you take to put this team together. You can hire from within your organization, outsource or work with a technology partner.
That said, there are specific qualities you should look for in these employees. They have to be willing to learn about new technologies, have an open mind and have a willingness to adapt as the business continues to evolve.
LEADERSHIP AND DEVELOPMENT
While the use of cutting-edge technologies is key to digital transformation, soft skills also play a role. Interpersonal communication, change management, strategic thinking and influence of others are just a few of the characteristics required of leadership to embrace digital transformation effectively.
FOCUS ON CULTURE
If you want to build a successful digital transformation strategy, you have to create a culture that supports digital innovation. One study shows that company culture is one of the biggest hurdles for effective digital transformation.
Getting the right leaders on board is a good first step, but you cannot stop there. The next step is to make sure that everyone in your organization understands this vision. That way, you can ensure that the entire team knows why these efforts are important.
Digital transformation can fundamentally change how businesses operate and how they deliver value to their customers. There are a number of reasons that a business may undergo digital transformation, but by far the most common reason is they have to in order to survive.