Digital Transformation is one of the fastest growing components of modern-day enterprises. As its namesake suggests, it is the integration of sophisticated digital technology into a business enterprise. Digital transformation approaches will vary from one SME to the next, however the strategies are all designed to add value, push the limits, and transform business operations. Businesses which adopt digital transformation strategies are not complacent with the status quo; they are prepared to walk away from entrenched systems and adopt new age technologies to drive growth and prosperity.
All businesses can benefit from digital transformation. This strategic framework is geared towards competitiveness, relevance, and dynamism. A degree of skepticism tends to filter through when topics related to digital transformation are brought up. This high-tech concept is often erroneously labelled cloud-based systems, but it is so much more than that. A digital transformation strategy is an all-encompassing framework that bridges the great divide between analogue businesses and digital customers.
For the purposes of explanation, digital transformation is more about new ways of conducting business enterprise, interacting with stakeholders, and digitizing assets. This technology is future oriented, and designed to supplant existing systems vis-a-vis interactions with suppliers, business partners, business clientele, employees, and other stakeholders. The importance of digital transformation cannot be underestimated. Experts readily agree that businesses wanting to maintain a competitive edge will often turn to digital transformation to achieve their ends. The failure of evolution in a business enterprise often lends itself to transformation.
Several important lessons are evident in the way that companies conduct themselves and remain viable. As a case in point, the S&P 500 index lists the top performing companies in the United States. 60 years ago, the average lifespan of a company on the index was 61 years. Rewind 7 years ago back to 2011, that lifespan was trimmed to just 18 years. Nowadays, the average lifespan of a company on the S&P 500 index is just two weeks. This is frightening and exciting at the same time. There is so much competition among the top tiers of business enterprise, that competitiveness must be maintained regardless.
How to use Digital Transformation to Leverage Intelligence?
Cloud-based technology is increasingly being used to transform business enterprises. Organizations are now forging new relationships between themselves and their customers, enabling them to survive in a dynamic new world. Despite its many benefits, there are notable challenges with digital transformation strategies. These encompass the development of an overall transformation strategy, enhancing customer/business relationships to digital offerings, quick-reactions to market opportunities, and enlisting the support of key decision-makers for digital transformation strategies.
Intelligence is one of the greatest assets available to a business. This extends beyond the brains trust at the top of the pyramid, and draws from the collective know-how of stakeholders at all levels of the organization. Employees in particular are sacrosanct in this regard. Collective intelligence strategies should be designed as part of an open innovation ecosystem. Various employee innovation programs with ideation competitions can easily be established to boost involvement, idea generation, and information dissemination. Other elements like nationwide hackathons, and innovation scouting have proven to be effective disruptive techniques for enterprises.
While these concepts may appear esoteric at some level, they are implemented on an organization-wide basis. To date, the world's premier enterprises have adopted corporate digital transformation systems, and this trend shows no signs of abating. Leading enterprises now use digital transformation as part of their daily operations, including Teva pharmaceuticals, ABInBev, Ford, NHS, Philip Morris International, Lufthansa, Liberty Mutual, Peabody Energy, Swiss Post, and Grant Thornton. Collective intelligence solutions offer complete flexibility for enterprises across the board. These cover ideation, scouting, and optimization for outsourcing solutions for internal and external stakeholders.
Digital Transformation Frameworks
Digital transformation frameworks pertain to multiple elements of a business’s corporate digital transformation daily operations. These include workforce enablement, customer experience, digital technology integration systems, cultural and leadership programs, the customer experience and more. It's interesting to note that the majority of business operations want their IT departments to contribute towards increased profitability.
Previously, IT departments were tasked with saving money, but now it's all about making money. At its heart, digital transformation initiatives are really about people, and that's why digital transformation is increasingly being used to leverage intelligence and maximize profitability. Digital transformation is about disrupting existing frameworks and replacing them with new-age systems to foster growth, innovation and change.