In order to understand the digital transformation model, it is useful to first understand the current business models and business trends that currently dominate the corporate landscape. The current business models and trends tend to focus on consolidation, which is perhaps the most important and most obvious impact of the current business model and trend. Consolidation occurs when one business unit purchases another unit of a same business process or product to allow the operation to move faster and produce more.
Consolidation and market changes lead to two major effects: increased organizational flexibility and efficiency, and decreased cost base. Digital transformation requires strong leadership to effectively drive digital transformation throughout your organization. However, it also needs a clearly defined vision for what segments of your business you wish to transform.
Organizations in all sectors and industries are experiencing considerable benefits from digital business transformation. Some of the more prominent changes include productivity, quality, flexibility, and increased profitability. However, the key to digital transformation is effective management, or more specifically, change management. Properly implemented and managed, change management will enable your organization to successfully execute digital business models and stay competitive.
The change management process begins by identifying your organization’s goals and objectives, as well as the existing digital capabilities. Next, you must develop the organizational strategy that best meets your organization’s goals and objectives, as well as the digital capabilities needed to achieve those goals and objectives. After developing an overall strategy, you must determine the appropriate mix of technologies to support the strategy. There are three basic technologies involved in digital transformation: new technologies, existing technologies, and extensions of existing technologies. Each technology has its own benefits, specific uses, tradeoffs, and tradeoffs with others. You must consider the key benefits, risks, benefits, and costs associated with each technology during your analysis.
Next, once you have determined the appropriate combination of technologies, you must determine how to provide users with the appropriate interfaces to support the digital transformation, such as through the application software, user training, and web services. This application software must be appropriately designed to manage the digital transformation, such as through the integration of customer and business value. It is also important that you consider the costs, benefits, risks, and costs associated with the different interfaces to deliver the digital business value to your customers.
When you apply the appropriate solutions, your organization can successfully implement digital transformation seamlessly. In order for a digital transformation solution to be successful, it should support a wide variety of digitized business processes and data. Your solution must not only provide users with easy access to digital technology, but it must also support other business processes, such as supply chain management and logistics. Your solution must be flexible enough to handle the changes brought by digitization.
Another important thing to consider when creating a digital model is your organizational culture. The purpose of implementing digitization is to enhance the overall productivity of your organization. A digital transformation strategy must take into consideration the desires, goals, and needs of your employees, customers, suppliers, and society at large. The best solutions will leverage the multidisciplinary approach by experts from diverse disciplines to develop a holistic digital model that enhances and leverages the collective power of knowledge.
Digital transformation is an important tool for increasing business value. However, it does not happen overnight. It takes time to improve and digitize your company’s information system. With the right tools, planning, and a change in mindset, your organization can benefit from the digital transformation sooner than you think.
Deepak Wadhwani has over 20 years experience in software/wireless technologies. He has worked with Fortune 500 companies including Intuit, ESRI, Qualcomm, Sprint, Verizon, Vodafone, Nortel, Microsoft and Oracle in over 60 countries. Deepak has worked on Internet marketing projects in San Diego, Los Angeles, Orange Country, Denver, Nashville, Kansas City, New York, San Francisco and Huntsville. Deepak has been a founder of technology Startups for one of the first Cityguides, yellow pages online and web based enterprise solutions. He is an internet marketing and technology expert & co-founder for a San Diego Internet marketing company.