Digital Transformation Strategy Business Growth Accelerator
It’s no secret that digital technology has transformed the business landscape in ways few could have anticipated even five short years ago. What’s new is that the techniques and solutions that once seemed far-fetched are rapidly becoming table stakes in most industries. That is why leading businesses are emphasizing a robust digital transformation strategy.
Data, analytics, IoT, cloud computing, AI, and disruptive new technology are reshaping every sector of the global economy. Amazon and Alibaba have set the pace in retail, mainly without owning stores. Airbnb is one of the highest growth brands in business and vacation rentals even though it neither owns property nor operates hotels. Uber and Lyft have done it without owning their fleet of vehicles.
A robust digital transformation strategy isn’t just about technology. Digital disruption impacts the entire organization, and the approach needs to take that into account.
Digital Disruption is Impacting All Industries
There are many recent examples of digital disruptions. For instance, several companies are trying to disrupt the way people find and hire their real estate professional. Customers, whether business or consumer, have come to expect a smooth, omnichannel buying experience, whether they are purchasing a pair of shoes or a million-dollar business investment. Traditional businesses are finding ways to transform their competitiveness by reinventing back-office processes, speeding up supply chains, and re-imagining service offerings.
The most advanced of these are often called digital gazelles—these are the organizations that are able to combine the scale advantages of incumbents with the speed and agility of native digital businesses.
How does a Digital Transformation Strategy Impact Growth Acceleration?
What’s at stake, of course, is industry dominance, brand reputation, and customer success. Organizations that seize increases to their digital fluency and create value throughout the organization are steadily dominating many markets.
These are amplified by network effects to the advantages of scale; it is especially critical not to be left behind.
The Most Critical Elements of a Digital Transformation Strategy
In my experience of doing large scale digital transformation procjects, these are some of the most overlooked areas that can make for success or failure:
Establish a Company-Wide Digital Culture
Many companies believe a digital transformation strategy is about technology and the IT department. The truth could be no further from this belief. One of the biggest reasons digital transformations fail is because the entire organization believes it is IT’s sole responsibility.
Place Emphasis on Effective Change Management
Change and culture go hand in hand. Often, digital disruption is impacting a process, procedure, or business line that has been doing something one way for a long time. Without buy-in into the end goal, the transformation will never be sufficient.
Robust Competitive Gap Analysis
An essential aspect of a digital transformation strategy is competitive analysis. This exercise can help illustrate not only the gaps but also the sequencing and prioritization of initiatives.
Don’t Overlook Architecture – Business and Technology
Most organizations suffer from what I call accidental or spaghetti architectures. These are often brought on by business change that gradually happen as a business goes through its natural evolution. Having a robust structure for both IT and the company provides clarity as the organization introduces new processes and technologies. I have found architecture done right can save significant time, effort, and pain.
What are the Next Steps in Creating a Digital Transformation Strategy
Digital transformation remains the primary source of change in today’s rapidly evolving marketplace. When it’s successful, it leads directly to increased revenue and improved profitability. When it is not, it can lead to direct brand, profit, and customer erosion.
At Ovesto, digital transformations lie at our core. We understand how to create a digital transformation strategy that will have a profound impact on your business. We have implemented various digital disruptions, technology overhauls, analytics, AI, and new digital product releases. If you cannot afford a full time experienced resource, consider hiring a fractional Chief Information or Digital Officer.
JOHN R. MILES
John R. Miles is the founder and CEO of OVESTO, the leading provider of on-demand executive staffing. Ovesto provides transformational leaders for fractional, interim or project assignments. Miles is widely viewed as an expert on digital disruption and business transformation. He is a highly sought after speaker, consultant, and writer. Miles has significant business experience a Fortune 50 CIO, Fortune 100 CISO, and seasoned private equity leader in COO and CEO roles across several diverse industries.
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