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Three Things They Don't Tell You About Digitalization

Kairos Technologies
Three Things They Don't Tell You About Digitalization

Becoming a digital business has been a priority on the to-do lists of executives and IT leaders for nearly a decade. Now, due to the pandemic, it's created an urgency to act now. Even with the accelerating rollout of new digital tools and platforms, organizations don't often find success, or even fulfillment, when it comes to the digitalization of their businesses.

According to 2018 Gartner research, nearly nine in 10 senior business leaders say their companies prioritize digitalization, yet two-thirds of transformations are unsuccessful. Data from McKinsey shows that only 16% of executives said their digital transformation initiatives were succeeding — due in large part to employee resistance and lack of managerial support.

Over the years, the idea of transforming into a digital business has been massaged and stretched so much that it can be hard for organizations to fully imagine their digital destination.

As the CMO of a company that offers business and technology transformation services, I believe that for organizations to take advantage of disruptive technologies like IoT, AI and robotics in the name of increasing profit or realizing new revenue streams, they must recognize that existing digital business approaches have been largely unproductive. Covid-19 has surely stunted growth estimates in digital business spending, but Statista data projected (paywall) that worldwide spending on digital transformation technologies and services would grow over 10% in 2020. PwC research suggests that while companies are making budget cuts, they're protecting digital transformation budgets ahead of other areas.

If companies want to truly enable digital business with that spend, they should understand the nuances of digging deeper, changing in short spurts, and creating new opportunities from existing assets.

Transformation requires practitioners, not just experts in new technologies.

Enterprises often enlist the help of experts in particular technologies, software or language to guide their digital transformation decisions. These experts' knowledge is usually a mile deep and an inch wide — that is to say that their knowledge of their niche is bottomless, but their application experience within a particular industry might be rather narrow (or sometimes nonexistent). They are not always best positioned to answer the question "what are we solving for?" This is problematic for digital transformation efforts and could lead to a company utilizing the best technology but solving the wrong problem.

In my experience, tech specialization is not as important as transformation specialization. The model I've seen work time and time again for the largest global enterprises is focusing on collaborating, iterating and creating solutions with their digital teams and business partners.

They should look for team members who can step back and comprehend the bigger picture, can understand the pain points of the customer and are well-positioned to solve them.

Also Read : Digital Transformation Services

Transformation is not a singular, big-bang event and doesn't have to be expensive (really).

If someone were to tell me they were going to completely and radically change my business to accelerate growth and income, and it wasn't going to be expensive or take very long, I'd be skeptical. However, with a detailed blueprint, much in the same way buildings are constructed in phases, you can enable digital business more effectively. You should use a bite-sized, incremental approach to deliver results and greatly lower implementation risk.

When business and IT leaders collaborate in short sprints, I've found that it creates faster and less costly results. With a practitioner approach as outlined above, it's possible to bring together technology and business teams in agile, short sprints that create real-time business intelligence and launch new products. When you add AI and the right algorithms, you can gain insight that keeps you on track to deliver specific business outcomes.

And that's the goal — simplification and continuous innovation through experimentation. It's about building a process, not a one-time upgrade. The goal should be to create high-value models for customers and ensure a higher probability of success. Taking a bite-sized approach not only helps ensure success in execution but also enables course corrections with greater agility. This can also lead to more efficient processes and drive down the costs considerably. It debunks the myth that digital business enablement is costly and time-consuming. And perhaps most importantly, you are not disrupting current business operations or adversely impacting customers.

Transformation isn't about new technology as much as it is new products and business.

Most executives believe they know their customers intimately, and why shouldn't they if they've achieved success? The reality I've seen, however, is that their level of customer understanding and insight is often not deep enough to develop solutions to fully meet customer needs. If Steve Jobs asked people what they needed when Apple was developing the iPhone, he likely would have heard "fix dropped calls," which was a common complaint for a long time. Instead, I believe he found the latent needs of what was truly important to people and created a totally new mobile experience. He didn't sacrifice simplicity and an intuitive experience even though the iPhone is a highly complex piece of technology. Data and insights are the lifeblood for digital business implementation.

When you understand what people want and deliver solutions that they may not have even thought of, that is when real digital transformation takes place.

The road to digital transformation is paved with good intentions. Navigating it with these thoughts in mind can enable new digital business that delivers faster and cheaper and jump-starts your growth.


This Article Source is From : https://www.forbes.com/sites/forbescommunicationscouncil/2021/02/12/three-things-they-dont-tell-you-about-digitalization/?sh=30466a2e70fa

Kairos Technologies
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