“Digital transformation marks a radical rethinking
of how an organization uses technology,
people and processes to fundamentally
change business performance”
George Westerman, MIT principal research scientist and author of “Leading Digital: Turning Technology Into Business Transformation.”
The world we live in now is a digital warehouse with many new ideas and innovations coming up. While some businesses have been able to take advantage of this tech advancement by ranking high in business innovation, others still have a long way to go. This may be because they do not see the need for digital transformation.
But the question is, what is digital transformation?
Digital transformation is the use of new and frequently changing digital technology to solve problems. It is the incorporation of emerging technologies into every aspect of your business to transform your processes. It encourages a behavioral shift that allows businesses to constantly challenge what is and avoid being redundant at all costs. Most importantly, it is not just about technology. Sometimes organisations try to avoid digital transformation so as not to interfere with the current traditional business process that brings gain. While the fear of change is understandable in the fight for gains and against losses, its advantages outweigh the cost it entails.
Here are some advantages of digital transformation for your business;
- It transforms the customer experience
- Creates more data-based insight
- Improves greater collaborations among departments
- Empowers employees and covers up for human shortcomings.
- It improves innovation.
What is a prerequisite for digital transformation?
Every real business that aims to provide solutions does everything for the customer. Hence, to make sure that your business’ digital transformation is a success, it has to be customer-focused. Your entire strategy should focus on revamping the organisation with a customer-focused goal in mind.
There are four types of digital transformation and they are as follows;
1.Business process transformation: This focuses mainly on parts of the business. For instance, a clear example is process transformation on the shop floor, where companies like Airbus have engaged heads-up display glasses to improve the quality of human inspection of airplanes. Similarly, process transformations are also seen in customer experience. For instance, a good example is Domino’s Pizza. They improved the food ordering process by allowing customers to order their pizzas from anywhere.
2. Business model transformation: This transformation is aimed at the fundamental step by step method of how value is delivered in the industry. An example of a business model transformation is how Uber reinvented the taxi industry.
3. Domain transformation: This is all about using new technologies to redefine products and services. It also about blurring industry boundaries and creating entirely new sets of non-traditional competitors. For instance, the online retailer, Amazon, can be a good example of how domain transformation works. With the launch of Amazon Web Services (AWS), now the largest cloud computing/infrastructure service, Amazon expanded to a new market domain. This domain was previously owned by IT giants such as Microsoft and IBM.
4. Cultural/Organisational transformation: For digital transformation to occur, it requires redefining the organisational mindset and its talents for the digital world. This organisational transformation would entail a conscious engagement of employees to prep their minds for the change. A good way to do this is to find out what skills, competencies, and roles required for a digital business model. After that, make sure that a cultural transformation ticks every requirement.
Businesses that plan to go through digital transformation should ensure that they;
- Unify the digital experience by creating a consistent, connected experience for customers, citizens, employees, and partners.
- Have all-round mobility by ensuring that a mobile app should not be restricted to only a particular type of device.
- Have a common point of access like a store that is device independent where users can access available applications to ensure easy use.
- Deliver at digital speed and scale by leveraging the increasing industrialization of IT to create an end to end modeling and deployment environments which increase the speed of delivery.
Only time will tell how other businesses will start theirs. But one thing is for sure, Africa Prudential can guide your brand towards a successful digital transformation. You can send an email to email@example.com to apply for a free 10-minute consultation session. We will walk you through how to do it best for your business.