Today’s technologies are redefining the world of business and everyone seems to be going digital. In this modern era, digital transformation is becoming a top priority for organisations across the globe.
But what does “digital” truly mean?
Karel Domer and David Edelman of McKinsey & Company defines digital not as a thing, but as the way of doing things.
To be meaningful and sustainable, we believe that digital should be seen less as a thing and more a way of doing things… Being digital requires being open to reexamining your entire way of doing business and understanding where the new frontiers of value are… At the same time, being digital means being closely attuned to how customer decision journeys are evolving in the broadest sense.
Digitisation presents a multitude of opportunities. No longer is it considered as an extra feature, but as a default to deliver several aspects of customer experience. Beyond that, leveraging digital technologies is critical for an enterprise to remain relevant and profitable.
To maintain your business’ competitive edge in the digital economy, there are critical steps that you must undertake. In this article, we enumerate some ways to accelerate your organisation’s digital transformation.
#1: Develop Multiple Strategy Prototypes and Test Them
Digital transformation comes with its own risks. To minimise this, Andy McAfee of MIT’s Center for Digital Business says, “experiment. Run a pilot, run a test, get feedback. Keep iterating that way.”
On the other hand, BCG Digital Ventures notes that “the traditional three- to five-year strategy and planning process is no longer effective” and recommends implementing four innovative methods that leading digital companies have pioneered.
Agile innovation methods have been successfully pioneered at companies such as Google, Amazon, Facebook, and Twitter. These companies have proven that there are real advantages in the following areas:
- Learning by doing
- Rapidly and frequently delivering working products inspired by real consumer needs
- Developing innovative delivery methods and value propositions
- Adapting to changing requirements
The above-mentioned methodologies have brought success to many B2C companies, BCG Digital Ventures reveals. And today, more and more B2B companies are starting to follow the same approach.
#2: Integrate Mobility into Your Digitisation Initiatives
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All digital transformation efforts should not forgo without mobility. Mike Sutcliff, CEO of Accenture Digital, has painted a clear picture why designing your digital business with mobility in mind is imperative.
Today, we have about 6 billion people on the planet, about 4 billion have mobile technology and 5-7 billion “things” are connected. All of these numbers will explode in [the] next couple years. We think that we will add 9 billion new connections to the Internet next year.
Sutcliff further predicts that mobile technology will cause a massive shift in the next 12 to 18 months.
#3: Re-examine Your Business Models and Design New Ones
EY’s Jaimy Chadam and Robert DeMaine stress the importance of designing new revenue models to the success of digital transformation.
While traditional revenue models still matter, you must also reassess your business to diversify into digital revenue streams, explore new pricing models, and adapt to new and emerging payment models such as mobile and virtual currencies.
Constellation Research’s Ray Wang agrees to reassessing business models and using digital to build new experiences. “Customers seek outcomes and experiences while organisations continue to sell products and services. This gap in expectations only worsens in a digital world,” the report points out.
#4: Develop a Digital DNA Culture
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In order to succeed in today’s digital age, fostering a culture of digital DNA is vital. Wang believes that balancing cultural change from top to bottom and vice versa is a step every business undertaking digital transformation should take. Sutcliff agrees, saying, “getting that top-down/bottom-up balance right is where organizations will see the most massive change occur.”
Wang adds, “digital DNA requires strong leaders who are not afraid of dips in share price, cannibalising existing markets, and identifying new approaches.” Strong leadership can influence individuals and help them understand that digital technologies are not disruptive, rather they give people the ability to do a better job.
#5: Make Use of Data Analytics
Analytics is to digital transformation as technology is to product design. It is the core, or more specifically, the backbone of the transformation process.
BCG Digital Ventures says, “companies that use big data effectively tend to generate higher revenues and come up with more innovative project ideas and capabilities. In the process, they create entirely new revenue streams, business units, and stand-alone businesses.”
Sutcliff also shares that involving the human element into the analytics and big data is a must, as superceding this element is where analytics goes wrong. “When that happens, humans are resistant, so it’s important to try to provide a balance,” he notes.
#6: Beware of Digital Darwinism
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Digital Darwinism is real and businesses should be aware of it. Defined as “the phenomenon when technology and society evolve faster than a business can adapt,” Digital Darwinism is a result of missed business opportunities, says Brian Solis, business strategist and futurist at Altimeter, in NetSuite’s SuiteWorld conference.
He notes that businesses have only two options to go it: either they adapt to the phenomenon or they don’t. Those that try to react to it may find success in the future and those that don’t may expect to fail. “[Human] Behaviour always changes, this is Digital Darwinism in action… Digital Darwinism favours companies that at least try,” Solis explains.
#7: Embrace Risks
Digital disruption is not a fallacy and businesses are certainly taking notice. While digitisation is not without its inherent risks, successful companies are learning to embrace them. “By understanding and monitoring risks, you can take advantage of new opportunities while still knowing when to persevere — or shut down a failing product or service,” explains Chadam and DeMaine.
The opportunity to transform your business digitally is yours for the taking. As businesses adapt with the ever-changing digital world, how are you preparing to compete?