Numerous studies have identified some of the benefits of
digital transformation:
The Impediment
to Change
Change is always difficult. And
digital transformation can be
hard to "get it right". It
represents a radical rethinking of
how people, processes and
technology fundamentally
change the operations -- and
overall performance -- of a
company.
Unfortunately, so many
businesses focus on just the
technology -- the shiny new
object in the room. Technology
can do amazing things. Just look
at the growing number of new
analytic and automation tools
that are gaining prominence in
industries across the globe --
Artificial intelligence (AI)…
Robotics…Machine Learning
(ML)…Cognitive Computing.
Technology is great. But digital
transformation is bigger than
that. It's also people and
processes.
George Westerman, principal
research scientist for workforce
learning in MIT's Abdul Latif
Jameel World Education Lab
summed it up nicely.
"Unless organizations change,
the technology really does
nothing for the business. Digital
transformation is less of a digital
problem than it is a
transformation problem. It's a
leadership problem for
envisioning and driving change."
81%
of digitally mature
companies cite innovation as
a top organization strength
compared to just 10% from
early-stage digital adopters
84%
of business executives say
that new business
opportunities have emerged
as their companies make
digital transformations
43%
of highly digital mature
companies report
significantly higher net
profit margins than industry
averages. (Deloitte)
2,300%
higher rate of acquiring new
customers among
businesses who utilize a
data-driven focus, versus
those who do not (Forbes)
The top three benefits of digital transformation include
improved operational efficiencies, the ability to meet changing
customer expectations, and improving the quality of new
products (PTC).
Based on these statistics, one could argue the Gene Kranz-
attributed quote could be adjusted to say, "Failure to Transform
(Digitally) is Not an Option".
We have identified "three D's" in the digital transformation
movement: demand, delivery, and disruption. We discuss all
three in this paper.
Consumer Demand
COVID-19 is often singled out as the main reason for
accelerating the speed of adoption. But then, what was the true
catalyst for digital transformation?
Quite simply, it's the customer. Gone are the days of selling
products and services. More and more companies are adopting
a customer-centric model into their operations. This puts the
customer at center stage in today's "constantly connected"
universe.
DEMAND, DELIVERY, DISRUPTION | 3
