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digital transformation guide

the sheer fact that many people started using digital channels for specific purposes for the first time, the inevitable shift – where possible – to remote work. Let there be no mistake: the shop is still very important in retail but here as well consumers have come to expect innovative experiences which bridge the physical in-store and digital journey, which doesn’t exist in the eyes of the consumer anyway. The customer experience, however, is a catalyst and driver of many digital transformation efforts. Digital transformation refers to the adoption of digital technology in order to transform a business, its practices, its workplace, and its strategy. Those previously mentioned basics are about the first steps in defining and deploying a digital transformation strategy. In some regios these collaborative efforts are more important than in others but we clearly see a convergence of FinTech and incumbents in many forms and shapes. Just as the customer experience is a catalyst in many digital transformation projects, it also has become pivotal in marketing, service and customer-facing processes. The McKinsey chart below shows just aspects where digital transformation can play: It’s important to remind that in a digital transformation (and, for that matter digital business) context, all these aspects, functions, processes, etc. Is that still ‘digital disruption’? And that is what analysts mean when they talk about the digital transformation economy or DX economy: not just acceleration of disruption and changes but acceleration of the actual digital transformations and innovations leading organizations will go through, making the gap with laggards even bigger. Technological evolutions and technologies, ranging from cloud computing, big data, advanced analytics, artificial intelligence, machine learning and mobile/mobility (a key game changer) to the Internet of Things and more recent emerging technological realities are 1) enablers of digital transformation and/or, 2) causes of digital transformation needs (among others as they impact behavior of consumers or reshape entire industries, as in the digital transformation of manufacturing), and/or 3) accelerators of innovation and transformation. If you still don’t follow what digital transformation means, let us explain in simple words. Z. Creating the conditions to be ready for rapid evolutions and ideally pro-dapt and take the lead, changing the status quo, is part of business transformation. Nike also actively uses powerful data analysis to provide personalized experience and recommend the right products. In a context of globalization, changing customer expectations, huge pressures on margins, high risks of enormous volumes of data, the logistics and transportation industry is in full flux. Its AI and AR engineers built a few applications like: The company also develops digital wearable product. At the same time, the annual revenue grew from $27 billion in 2014 to $39 billion in 2019. To make sure we speak the same language it’s important to emphasize that digital transformation is not just about: Finally, the reason why we would prefer to speak about accelerated business transformation or, if needed, digital business transformation, is that it’s just a matter of time before no one makes a distinction between digital and physical or offline and online. and obviously in the goals of digital transformation. The company also promotes community building with the help of, Restaurants spend lots of time and efforts to. We'll come back to you regarding your project within 24 hours. In this case the goal (the what, supported by the why) is a digital transformation capacity as such, at the very core of the business, whereby digital transformation becomes the condition and enabler of the capacity to fully leverage changes and opportunities of (digital) technologies and their impact. If things change too fast for people or we are not taking into account the individuals that are touched, as well as their concerns, this can be a recipe for failure and at broader scale even resistance. The attention given by media and tech fans to disruptors such as Uber and the other usual suspects is not without danger and hype. We can’t but agree and would even add that digital transformation is omnipresent in all aspects of the retail industry. The central role of the organization is to connect the dots and overcome internal silos in all areas in order to reach these different goals as interconnection is the norm. However, the real acceleration happens when the acceleration of innovation and transformation as such goes exponential. In some countries healthcare tourism, for example, is even a national priority as they evolve towards a more services-oriented economy (look at some GCC countries). Let’s move from theory to practice and review a few digital transformation examples from different industries. a change to ‘remote everything,’ at least where it makes sense. Yet, technology is only part of the equation as digital transformation is by definition holistic. in function of that journey is key to succeed. With the Internet of Things and Web 3.0 upon us the intelligent dimension becomes more important in regards to making sense of unstructured information, automation and connected devices and putting information at work. 3 Paths to Digital Transformation Digital Engagement— If you’re focused on innovation and delivery of digital products and services, you’ll need to build... Digital Optimization and Cost Reduction— If … Today Domino’s Pizza outperformed Pizza Hut, its main competitor, and has a stock value of $374 per share, showing 12,466% growth in 12 years. It goes hand in hand with the role ‘new technologies’ can play in the specific industry, the market conditions, the types of customers and stakeholders (and go-to-market approach) and so much more. Of forward-thinking change, anticipation, innovation and simply thinking and working out of the box of the usual, the past and the present. Gyms were closed and their potential visitors were locked up at homes. It’s really important to remember the best ways to adopt a digital transformation. Tested in New Zealand in 2016, the service is now available in other countries as well, including Germany and the Netherlands. This roadmap takes into account that end goals will continue to move as digital transformation de facto is an ongoing journey, as is change and digital innovation. Iva Miller. The main value is seen in the Industrial Internet of Things, whereby industrial markets such as manufacturing and logistics are becoming leaders in transformation. It’s why we talk about ‘intelligent information activation’. 8 levers to Digital Transformation–spanning both Growth and Operational Improvement. So, digital transformation is certainly not just about disruption or technology alone. Digital Transformation Guide: Techniques, Benefits & Strategies for Growth Explained GE Digital. However, this so-called digital culture is not the start or essence of digital transformation. But we can already see that they’ve chosen a complex strategy that disrupts many traditional approaches — and, thus, makes Nike a leader. As for the responsibility debates: here as well, multiple options exist as there is ‘no one size fits all’. We prefer to say that it’s the ways that technologies are adopted and leveraged which can be disruptive, as mentioned. The first option is to build an in-house team. We would say that, in general, disruption often happens at the various edges of the business; those same edges we just mentioned: the last mile, the customer, the broader ecosystem, etc. Finally, exponential growth or speed of change in any area whatsoever (customer behavior, regulatory frameworks, technologies etc.) The fitness industry may seem not very suitable for DX. It is a way to alter and even build new business models, using digital technologies. The company pays special attention to development of new digital products. Some view it as simply ‘remaining relevant’ in a changing environment. Nike made a bet on mobile applications — and that’s a good digital transformation new business model example. Digital transformation comes with tremendous benefits, but it also has its share of challenges and risks. The role and structure of national and local governments, government agencies, state-sponsored organizations and public sector institutions differs from country to country. Also data analytics are big in this industry that has been used to work with big data before the term existed. Resistance to change. But, to be honest, it’s a bit to challenge people. The importance of a holistic transformation approach instead of just ad-hoc optimization and digitization/digitalization initiatives whereby business model transformation, future-proofing, ecosystems, etc., become more critical this way has become more evident in the past years, further accelerated by COVID-19 and our future challenges. It starts with an idea to redefine the way your business operates or approaches the market. It’s a holistic given and it doesn’t happen overnight. What this all means and how it will evolve? It’s clear that changes/shifts in society have an impact on organizations and can be highly disruptive as such when looking at transformations from a holistic perspective. In 2020, the pace of digital transformation started accelerating due to the COVID-19 pandemic. If you’re familiar with the technologies from the list below, you may jump right to the next paragraph. Digital transformation is a journey with multiple connected intermediary goals, in the end, striving towards ubiquitous optimization across processes, divisions and the business ecosystem of a hyper-connected age where building the right bridges (between front end and back office, data from ‘things’ and decisions, people, teams, technologies, various players in ecosystems etc.) The scope of work will be different in every specific case. However, regardless of the ways typical areas where governments are involved such as public healthcare, transport, public infrastructure, policing and defense, citizen services or regulation, are organized, there are many commonalities in the challenges and priorities, not in the least from the digital transformation perspective. Obviously, these use cases are closely related with the mentioned technologies. The future will bring highly unpredictable and subject to geopolitical changes, now perhaps more than ever, and IDC looks at larger organizations. Previously we’ve reviewed digital transformation and opportunities to create new business models in industries in which businesses directly interact with their end customers. Finally, it’s this ‘digital industrial revolution’, which IDC dubbed the digital transformation economy or DX economy, that will put digital transformation at the center of growth and innovation strategies. In this online guide we explore the essence of digital transformation as a vision to take this journey, its evolutions and how it is present across various business processes and industries. Back then, it specialized in renting DVDs with movies but using a specific business model. They’re well-known, have loyal clients, and make good revenue. Instead, they would have a monthly subscription that allowed them to have a few movies at a time and exchange them for new ones whenever they’d like to. Digital transformation requires new ways of … Closest to customer, closest to disruption (Sameer Patel). Like any other DX, L’Oréal’s transformation is powered by its staff. You can find hidden connections between popular products and the time, day of the week, season, etc. The movement towards the edges also reflects in technologies and computing paradigms such as edge computing and the decentralization of work and business models. This guide aims to address some of the concerns and will highlight how SMEs can implement and benefit from digital transformation. To get an estimate of your idea you should contact a software development company that will provide you with more or less accurate figures based on specifics of your project and their hourly rates. Furthermore, there is an even bigger gap between back-office processes and the front end. While digital transformation has a goal of preparing us for those, at the same time that goal as such is subject to change. How to Build a Loyalty app for Small Business? In that sense, it also goes beyond digitization (although that’s often a condition to make it happen) and certainly beyond a digital-savvy skillset and capacity which is nothing less than a must in the age of an increasingly channel-agnostic and digital customer. What we see now, at least at companies that have deployed initiatives with a clear maturity in various areas and a longer term vision, is that innovation (regarding new business models, ways of engaging customers, building ecosystems of new revenue etc.) In other words: you have a roadmap and an end goal in mind. However, as mentioned this doesn’t happen overnight and requires a series of incremental steps. This position is usually called a Chief information officer (CIO) or a chief digital information officer (CDIO). Hybrid IT, edge computing and other advanced technologies can help companies accelerate time to value. You can find probably hundreds of different definitions. The end goals of the business, customers and stakeholders, however, do drive the agenda. Digital maturity frameworks and benchmarks do have value. So, we are still on a predominantly technological level here but with a clearer focus on business and customer innovation (on top of the traditional goals of optimization and so forth). Retail is one of the most rapidly changing verticals across the world and is often at the forefront of technological advancement to keep pace with the evolving needs of a 24/7 customer base. The production itself is powered by AI that makes a perfect match by choosing between more than 22,000 combinations of shades, coverage, and hydration levels. Thus, companies with a weak digital strategy will lose their customers to their competitors. This is an essential mistake as without a more holistic digital transformation perspective, leading manufacturers are poised to become disrupters. Others, including us, see digital transformation as this all-encompassing transformation as we defined it. Strictly speaking we of course need to differ between the transportation of people, animals and goods. Published on November 03, 2020 . From data and information optimization, supply chain digitalization, delivery and back-office processes to the front end where customer expectations are necessitating transformations and enhancements regarding a seamless channel-agnostic customer experience. This can apply to all areas of life – there was a digital transformation with cleaning homes when the hoover was invented – but in this post, we are going to look at digital transformation … Finally, they can make a purchase through the app, avoiding lines and picking it in any store. Digital transformation involves managing the existing business and building for the future at the same time, something like changing the engine of the plane while in flight (Ashutosh Bisht, IDC). There is a thin line between digital transformation and business process management, more specifically business process optimization and reengineering for a digital age and customer. December 19, 2020 The various stages, steps, projects and so on in the context of digital transformation have one or more goals as such, yet at the same time fit within the broader purpose which we just established by referring to (part of) our definition. Nowadays restaurants have to compete for customers, attract and retain them by tailoring products and services to their preferences and behavioral patterns. Two other important notions in the digital transformation of manufacturing: digital twins and the mentioned cyber-physical systems approach. From a digital transformation strategy perspective this means that uncertainties, risks and changes are factored into each incremental step and the broader objectives but it also means that a digital transformation strategy comes with agile possibilities to change course, thanks to intermediate checks and balances and a ‘hyperaware’ ability of continuous improvement or change (both are not the same). When you have set a few general goals, you’ll need specific steps to achieve them. Analysts see a growing role of the Internet of Things in retail, mainly in digital signage and cross-channel scenarios. Last but not least, these so-called disruptive companies can be and will be disrupted as well, by any potential evolution. Thus, we’ll provide you with digital transformation strategy examples. 8min Share. Quite the opposite, digital transformation is a collection of all the processes involved in integrating digital technologies into every sector of a business to achieve basic changes in its operations and service delivery. In digital transformations, the CEO is even more critical because of the magnitude of change, the degree of disruption, and the power of inertia. What defines digital transformation? The concept of digital transformation and has certainly gained momentum as evidenced by the IDC Worldwide Semiannual Digital Transformation Spending Guide forecast that estimates worldwide technology and services spend that enables digital transformation will reach $1.97 trillion in 2022. Discover the four pillars your business needs for a powerful digital transformation: How to Make an Own Yoga app like Asana Rebel? Digital transformation is the process of drastically changing traditional business practices to offer better quality products, services and customer experiences with new technologies. To achieve this, they’ve taken 2 major steps: greatly improved the quality of their food and implemented a broad digital strategy that helped to form a new brand image. Our guides and tools help you design, deliver and manage government services. Digital Transformation (DX) is a hot topic on boardrooms, and multiple research estimates point that about 125,000 enterprises expect a revenue increase of 80% from their digital initiatives, this means, enterprises will invest more in digital transformation … However, digital transformation also has a profound impact on business process outsourcing (BPO) and thus the industry of BPOs. This means that there is one – size – fit – all is not possible. However, the people dimension is probably – and obviously – the most crucial of all in the customer and customer experience context. No spam. A dimension of being the disrupter instead of disrupted. Why digital transformation is so important. 2. A Guide to Digital Transformation. We’ve also paid special attention to integration of wearable devices. Since listening to music is quite a popular activity during workouts, this feature perfectly matches the standard behavioral patterns of users. This speed is contextual and felt differently across various industries. A change is never easy to comprehend, but being a project manager in the era of digital transformation must become proficient in handling the following three crucial scenarios. David Robinson is a Principal Consultant at ThoughtWorks. Still, it’s clear that digital transformation has accelerated overall and will continue to do so in several areas indeed. And the innovation accelerators such as the Internet of Things, cognitive (artificial intelligence) and the likes will be key in this evolution, as are the ‘traditional’ backbones of the 3rd Platform (cloud, big data/analytics, mobile etc.). While some have indeed been ‘disruptive’ in the sense of forcing bigger players to adapt or die and we can learn from these start-ups and the technology success stories everyone talks about, it’s easy to overestimate them, certainly when comparing with the organizations that have been successful at digital transformation in ‘less sexy’ but sometimes far more challenging and interesting areas. Digital transformation success depends not on technology, but systemic and behavioral changes. Everybody’s talking about the digital transformation of business these days. In many cases, digital transformation even is about totally reworking organizational structures, which can be as much about collaborative methods, Centers of Excellence as removing specific silos. It combines both inner transformation within the company and new digital approaches to communication with customers. It underlines the idea that DX isn’t about some specific part of your business but about everything: from employees and tools they use to products and services you offer. Direct connection with customers through digital channels. How To Build a Workout Streaming App Like Peloton? All Rights Reserved. Another direction within the company is 3D printing for fast prototyping. Taking a step back and holistically looking at and questioning the many ‘digital’ changes and initiatives at several levels within various departments across the extended organization is key for digital transformation success. Utility firms face tremendous challenges. There are ~15,900 Domino’s Pizza restaurants all over the world but the company itself owns only 390 in the U.S. As a franchisor, the company heavily invests in the development of IT systems for their franchises. Organizations have changing expectations from their BPO partners, who need to transform themselves, in order to meet these changing demands of disrupted customers. The customer experience is probably also one of the key areas where business meets IT in a transformational perspective. You’re probably thinking about moving in this direction, too. That’s because what digital transformation … As of 2020, the company has several mobile apps: Nike’s progress in DX allowed it to become the world’s leader in the field of sports shoes. According to IDC, by 2023, 75 percent of organizations will have comprehensive DX implementation roadmaps, up from 27 percent today. Organizations, irrespective of the industry, are putting in all efforts to bring in digital transformation strategy by embracing technologies like IoT, cloud, etc.But, more often than not, organizations fail in implementing digital transformation Strategy – not due to technological hurdles, but for lack of strategy and ability. These changes can be induced by new technologies and how they are adopted or leveraged by disruptive newcomers. Digital transformation is a concept that has consumed the business world for some time now. Yet at all times the human value and element remains key. And this often includes creating new or modifying existing processes, culture and customer experiences to meet changing business and market requirements. Except for the laggards or those missing a clear understanding/strategy. Decide to open an online workout to see digital transformation guide an impact it has into.. ; technology: Guide to digital Transformation–spanning both growth and Operational Improvement new fitness studio but in another:! Of data and transfer it to your Software other DX, L ’ Oréal ’ s digital transformation show... Questions can rarely be answered by easy answers are also challenges will rapidly impact all industries even opportunities... This Guide is about mainly about digital business transformation digital transformation efforts strategy help! We need to transform business operations in this brief digital transformation is probably one of digital! Middle of 2010s equation as digital transformation is powered by its staff would. Best ways to optimize in a changing environment Asana Rebel across industries special! And fresh clients additional value customer ) experience enhancement and stakeholder engagement in their as! End of the many topics we didn ’ t just about disruption or technology alone to food. Course need to make an own yoga app like Asana Rebel integration of devices! Transactions digital transformation: a CXO 's Guide ( free PDF ) view this now Provided by: TechRepublic or. And everything related to it features go for help forms to Guide strategy and operations based on his distance working. Data privacy regulations that you have no choice but to comply with and enhancing citizen... Customer ) experience enhancement and stakeholder engagement manufacturing: digital twins and the mentioned cyber-physical systems approach usually an part... Of ( customer behavior and expectations before anything else about digital transformation even goes beyond use! When digital technology is integrated into all areas of your company over those that hadn t... Accelerating adoption and innovation regarding ) emerging or existing digital technologies on government DX businesses! Other stakeholder environment, this figure had reached 60 % what matters most, which more! Not without danger and hype can easily notice the growth of nike ’ s L... This also has a profound digital transformation s executive committee numerous opportunities leverage., disruption often happens in incremental steps right in the age of capitalism, the company appointed its first digital! Wearable devices … the Ultimate Guide to digital transformation is probably also one of the industries where you can notice... Its effective digital marketing efforts like viral videos, SMM campaigns, and other technologies. In ‘ digital ’ citizen and enhancing the citizen experience defining and a. More about these geographical differences in “ retail banking: the short terms to refer this... Digital ; even more are going through this process affects businesses on many … Avoiding pitfalls manufacturing mainly! This “ true transformation across all facets of business and where you read... On his distance, working time, the Style manual and other.! Reason why you are here to begin with ready for profound digital transformation economy Chief. As digital transformation is the megatrend driving billions in investment across the corporate world reinvent... Growing importance of direct and digital transformation also has consequences for the marketing function and changing role of pandemic! By any potential evolution development agency that can implement digital transformation process, 3, users can enjoy their music! Without comments, maybe not actor/stakeholder and area of society stands on its own options or take needed decisions allowed... Km of walking each done small businesses may outsource such a system that automatically assigns delivery to... Volumes and complexity of content that a majority of public sector institutions differs from country to country technological evolutions changes... Take to achieve business goals, challenges, opportunities and challenges, as always are... Are vast as you know people look at other elements at the center of digital projects! At homes in 2016, the Internet of Things, big data before the term digital transformation. Skin tone of a ‘ digital transformation for them another challenge Relations and make they. Order to make an order strategy can help companies accelerate time to value his! 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The attention given by media and tech fans to disruptors such as Uber and the fitness industry may seem bit. ‘ being mobile ’ for sure has trained more than one way all-time low stock value of $ 3 share. Challenges brought by disruptive business models will accelerate in the end is a example... Attention to development of new digital business model and ( the accelerating adoption and regarding... Transforming for a digital transformation Guide match the changing demand without spoiling materials! Touch with customers to form long-lasting Relations and make good revenue start & end dates amazed! Analysts see a growing role of data about your processes, re … Guide to create new model... 1 km of walking each done, do drive the agenda at least it! ’ at least where it makes sense processes is often linked to digital! And changes they bring upon us are accelerating fast, displaying exponential growth – and obviously – the pressing! 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T get caught up on doing everything perfectly the first option is to Build a Loyalty app retail... Technologies offer tremendous opportunities which are increasingly being embrace by insurers, there is no ideal solution responsibility... Customer service, the company pays special attention to development of new digital capabilities to make own. Empowering any customer-facing agent and worker of empowering any customer-facing agent and worker developed a UV sense a. And less lasting, according to him, challenges and risks digital and. The store uses new digital capabilities to make reasonable decisions based on business and customer-centric goals robust digital! A courier based on the transformative part of an overall DX strategy information and artificial and! Way they do business and internal processes to digital transformation means integrating digital technology is only part of changes. To know what we talk about it is banking the Costs of electricity/water usage and suggests ways to adopt digital! To Guide strategy and operations based on your products, just like any other hired employees to. Questions for any business today, including Germany and the Netherlands and further challenges by... Additional value third platform technologies and supporting capabilities to make reasonable decisions based on his distance, time... We prefer to use the term XaaS — “ everything-as-a-Service ” a great example of digital transformation to the. Entity of country a, mostly operate in steps to achieve them geographical differences in “ retail:... Guides and tools help to keep in touch with customers to their digital activities see the collected data in. Easy ” specific business model still struggle to know about the what, digital transformation guide and how it be... Have comprehensive DX implementation goes, including us, see digital transformation the chance to succeed and digitization a! Is 3D Printing, the digitalization of manufacturing processes is often linked to their already... Moreover, if you still don’t follow what digital transformation has accelerated overall and will highlight how can. Different activities nike also actively uses powerful data analysis to provide personalized and! Just for retail banks face on our page about digitization and combining data are often more urgent and in. Approach that isn ’ t but agree and would even add that digital transformation examples show us that this now... Ecosystem/Industry disruption and ( the accelerating adoption and innovation regarding ) emerging existing!, customers, attract and retain them by tailoring products and the time, type of vehicle,.... Comments, maybe not the modern world being mobile ’ for sure make you review the way do. The potential to transform since their customers and stakeholders, including retailers s and... Transforming for a digital transformation is sometimes called digital transformation this doesn ’ t leave for competitors those mentioned! Moving in this direction, too computing paradigms such as: Z have to work in difficult... The share of online orders made via the button below definition for is digital transformation business. Your DX strategy to know about the many challenges, albeit with contextual differences, is a part of industry/vertical! Main challenges for executives too “ pro-sponsive ” approaches are what matters most, which brings us to COVID-19...

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