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Digital transformation is accelerating transformation of the business process, activities, competencies and business models to upmost leveraging the changes and latest opportunities of digital technologies. While considering their impact in a strategic and prioritized way.
While development with these new competencies around the capacities the process is more agile, people-oriented, innovative, customer-centric, aligned and efficient. Finally, the goal is to move faster from an increased awareness capability regarding changes to decisions and innovation, keeping in mind with the latest updates in changes.
Customer Behaviors, new economic realities, ecosystem disruption could be the major areas of changes from present to future. To increase a revenue sources and ecosystems the key digital transformation drivers provides a well-versed experience in optimization, operational flexibility.
Of course, the transformation happens over a period with different intermediate goals. The transformation is a continuous process with evolution of trends technologies. The process, divisions and business ecosystems must be continuously optimized in process to travel through a journey to succeed. Digital transformation aims to create the capabilities of fully leveraging the possibilities and opportunities of new technologies and their impact faster, better and in more innovative way in the future.
The end goals of the business, customers and stakeholders, however, do drive the agenda. 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 interconnectedness is the norm.
From a technology perspective think about how data analysis is moving to the edge, the decentralization of information management, the shifts in security towards the endpoints, the impact of the Internet of Things and much more.
The McKinsey chart below shows just aspects where digital transformation can play:
• The (digital) customer experience (as said, de facto a key element with many digital transformations being a mix of customer experience optimization and process improvement – and cost savings).
• Product and service innovation where, for instance, co-creation models can be used.
• Distribution, marketing and sales: another usual suspect and in practice an area (along with customer service) that is often one of the earliest areas undergoing digital transformations.
• Digital fulfillment, risk optimization, enhanced corporate control, etc.
Others we can add include:
• Intelligent information management (with information, data and the processes they feed being key and a focus on activation).
• Customer service, customer experience management and contact centers, customer relationship management.
• Work, human resources, new ways of collaborating, workforce engagement and enablement (agile working, social collaboration, enterprise collaboration, unified communications,…).
• Learning and education.
• Procurement, supply chains and supplier relationships.
It’s important to remind that in a digital transformation (and, for that matter digital business) context, all these aspects, functions, processes, etc. are interconnected and silos have less (or no) place, not from a technological perspective but most of all also not from a process and people perspective.
There is more to learn towards it.