What is digital transformation?
In broad terms, digital transformation (DX) of a business can be defined as the fundamental changes to how the business operates and how they deliver value to customers as a result of the integration of digital technology into all areas of the business. Every company is different, so DX will be slightly different for every company. In addition, it requires a cultural change resulting in the need for organizations to continually challenge the status quo, get comfortable with frequent experimentation, and get accustomed to failure.
It is said that fortune favours the bold. You may need to be bold to leave behind the tried and true ways of doing business. However, to lead your business through transformative change, you need to be the one disrupting your way of doing business, before someone else does it to you.
How can digital transformation help me?
Probably the most compelling reason for businesses to undertake digital transformation projects is profit. A 2017 Gartner study revealed that 56% of CEOs report their digital improvements had improved profits. Digital assets are easily scalable as well. Once you have the digital product or service in place, you can ramp up you capabilities. Computing power is available on-demand for anyone connected to the Internet. A Forrester study predicts that almost half of revenue will be digital by 2020.
Digital businesses can be more flexible as well, but the right digital technology needs to be used. A Computer Weekly article reported that 90% of IT decision makers claimed that legacy systems were holding them back. With the right digital technologies in place businesses experience improved efficiency and decision making. Digital transformation leads to better customer satisfaction and brand image. It is expected by the increasing number of people who have grown up in a digitally enhanced world.
Success stories for digital transformation
The digital transformation process is not without its challenges. The MIT Sloan Management Review has done in depth research into what is required, as have others. However, for those companies that accepted the challenge, the rewards have been worth it. CIO Magazine shares a list of 16 digital transformation success stories from businesses in diverse industries. By undertaking the transformation you can reap the benefits like Disney, Domino’s, GE and Air New Zealand and others.