Digital transformation requires strong leadership to drive change.
Companies in all industries and regions are experimenting with — and benefiting from — digital transformation. Whether it is in the way individuals work and collaborate, the way business processes are executed within and across organizational boundaries, or in the way a company understands and serves customers, digital technology provides a wealth of opportunity.
Digital isn’t a list of things to do. It’s about how you think, how you behave, what you value, about applying the culture, practices, processes, technologies of the internet-era and what drives decisions in your organization. It means reconsidering every aspect of a business, from the tools employees use for the simplest of everyday tasks to the entire organisational structure of a company.
The whole leadership team needs to take responsibility for making changes and working practices to the organization structure. They have empowered, multidisciplinary teams who have access to relevant, teal-time data about the changing environment (they are obligated to share what they’re doing, how their thinking is developing, and what they’ve learned). Than the whole workforce needs to work in an open way. When everyone behaves in an open way, your organization has access to much more useful information, insight and support than it would otherwise have.
You can’t be a responsive organization if your leadership team as a whole doesn’t understand the changes that you need to respond to, including the changes being brought about by digital technology. These changes apply not just to how services are delivered, but also to how people live their lives in a networked society, and how they therefore expect to interact with organization.
Although transformed customer experiences are the most visible — and arguably the most exciting — aspects of transformation, companies are also realizing very strong benefits from transforming internal processes through process digitization, worker enablement and performance management.
Being digital doesn’t add cost – in fact, done well, it should reduce cost, reduce risk and make you more efficient and resilient. It’s not just about making your existing processes cheaper by moving them online. Taking a digital approach often means completely redesigning the way a business works.
Executives in all industries are using digital advances such as analytics, mobility, social media and smart embedded devices as well as improving their use of traditional technologies to change customer relationships, internal processes and value propositions.
Digital transformation is actually changing the process of strategic decision-making. Leading digital change requires managers to have a vision of how to transform their company for a digital world. So, where can you look? What digital activities represent good opportunities for your business?
Executives are digitally transforming three key areas of their enterprises: customer experience, operational processes and business models.
Some companies try to make life easier for the customer, simplifying their processes through a digital plug-in.
Individual-level work has, in essence, been virtualized — separating the work process from the location of the work.
The tools that virtualize individual work, while implemented for cost reasons, have become powerful enablers for knowledge sharing.
Frontline employees, for example, are beginning to benefit from collaborative tools in which they can identify experts and get questions answered in real time.
Employees now work from home one or two days per week and, when they are in the office, sit near people with whom they are temporarily collaborating. Meanwhile, the company’s collaboration and networking tools allow employees to talk with anyone in the organization from wherever they are sitting. This is setting the stage for further changes related to globalization.
- internal processes and (work and workers)
- customer-facing processes
In both the level of detail is also increasing, allowing managers to compare status across sites or reallocate product manufacturing capacity in ways they could not do before.
Companies are also introducing digital products that complement traditional products
A winning strategy for an organization is not based on an individual choice but an expansive, countless number of decisions happening every day across all parts of a business — product, customers, technology capabilities, and more.