The Key Ingredients for a Successful Digital Transformation Journey
Digital transformation is a buzzword that has been doing the rounds of both technology and businesses domains for quite some time now. There has been a tint of haziness surrounding this space, with various terms associated with it like cloud, analytics and IoT. So, what is it exactly? Well, on a very broad level Wikipedia defines it as going paperless, but on a microscopic level it can be viewed as the surge of new investments in technologies and the realignment of business models in order to effectively engage digital customers at every touch point. It is led by the unification of different technology efforts towards a common vision. While it might imply different things for different organizations, its core principle i.e adapting and innovating on new age experiences, is the key mantra for earning relevance and establishing leadership in today’s digital economy.
Although businesses across verticals are exploring the power of digital in some form or the other, only a few are able to move ahead effectively on the maturity curve. The key reasons behind this is the fear of failure and lack of clarity – the fear originates from the apprehensions associated with change or transformation. However, companies need to overcome this initial fear and move forward with supersonic speed of change, to keep pace with their customers.
To start with businesses need to first gain a clear understanding of the digital ecosystem and then carve out a vision with clearly defined Digital Transformation steps. Here are some critical questions to ask before you set out on your digital transformation journey:
• How will it engage various stakeholders like customer, employees and partner in a better way?
• How is it going to enhance the operation effectiveness?
• How is it going to impact the current business model?
Digital transformation is an ever-evolving process undertaken by businesses striving to stay ahead in the digital economy, by leveraging disruptive technologies that impact various human touch points. It can well be set upon with an amalgamation of Strategy, Technology, Design, Usability and Execution, with Design and Usability serving as the central elements of the digital experience.
Key Elements Shaping the Digital Transformation Journey
Here’s a look at some of the successful digital transformation efforts from around the world:
Codelco based in Chile, the world’s largest copper mining company, has been an early adopter of digital technology, in a rather unconventional sector. The need originated from ensuring the safety of their workforce, in a bid to make it an attractive workplace. This led Codelco to move to an automated model with driverless trucks in its four mines in Chile. The new model further enhanced its reach to places which were considered dangerous and costly for humans to mine. The efforts were further recognized when they bagged the MIT Sloan CIO Symposium Award for Innovation, in 2011.
Marriot, a leading player in the hospitality sector, expanded its web presence rapidly across the globe without having regional strategies in place. But it soon realized the importance of personalizing the medium with a local flavor. Their strategy focused on attracting and engaging customers through the web channel in their local language. It proved to be a critical element in driving their international growth which translated to $7 billion of annual online sales, and also reinforced the company’s brand image in new markets.
Amazon, a leader in the e-commerce sector has been a pioneer in leveraging digital technology to deliver, simplified and relevant customer experience. Technology is embedded in their DNA, and they use analytics in every aspect, right from enhancing the online customer experience with precise product recommendations, to delivering exemplary backend customer services. Apart from the customer front, analytics is ingrained into their operations as well, to track, monitor and secure inventories around the world.
Codelco had a clear vision with the right technology identified, and an execution plan to achieve their target. In Marriot’s case, design and usability played a critical role in their successs story, by creating personalized experiences for their diverse target audience. With Amazon, the whole business model had been aligned with technology right from the start, which helped them to scale their initiatives. These companies either had or developed a clear strategy, powered by the right technology, and user experience, which helped them establish themselves as leaders in the digital space.
Endeavour has been helping businesses embrace disruptive digital technologies for faster deployments, reduced costs, lesser risks, increased collaboration and most importantly, to remain relevant in the face of persistent competition and volatile market situations. Our extensive experience in Strategy, Technology, Design and Usability has helped leading companies in their Mobility led Digital Journey.
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