Why you cannot ignore Digital Transformation (DT) !

More and more the topic of DT gets discussed and everyone is rushing around like crazy trying to get ready for this, almost like they know a wave is coming and should figure out how to prepare.

The reality of this is that, as was the case with the Internet many years ago, it is something that just appeared and is making us think about what to do and potentially how to embrace this. As was the case with the Internet, it is surely the work of some brainy scientist that started using this and now it trends more than certain presidents and their walls. DT is a reality and as sure as the sun will come up tomorrow (except if you in the Nordics or Alaska somewhere), it will dawn on us and businesses everywhere. Global researchers are publishing predictions on the major shifts in the way business will engage, and provide their services or products to their clients. The choice ultimately is yours… you can disrupt or be disrupted.  I plan to publish a series of blogs based on real world practical examples on how I experience business’ change and thinking around this.

For now, let’s starts with the basics, what is DT? I believe it is much simpler that everyone makes it out to be and if you look through all the smoke that the technology vendors are blowing in your face on this, it is simply: Being able to operate your business digitally and potentially provide a service or product to your clients through some form of digital channel. This does not take away from the interaction with people and never will but increasing pressure from shareholders on businesses fuels this. There is only 2 ways that a business can make more profit, cut cost or get more revenue. This is also exaggerated with more and more players coming into the market offering competitive products or services. So, business stakeholders must rethink how things are done.

The biggest prediction major businesses are sitting with, is the fact that more and more other businesses are offering the same services or products but historically would have been classified in different industries. Let me try explain, when going to my bank or engaging with them, it was for typical financial transaction. Now I can also buy airtime for my mobile through their digital channels, meaning I don’t have to visit my mobile operator anymore. Same goes for the luxury grocery store that now offers me financial products. What is going to make me decide on my provider of choice is the most convenient way to do the most with the best service. Maybe my retailer becomes my bank?

To be able to cater for digital enablement you need to consider 4 areas of the business that is most affected. These are: your people and empowering them, creating better efficiencies in your operations, transforming your products or services and serving your clients better using digital means. However, you cannot consider your clients if you have not internalized this yet. It’s like providing your client with the best digital mediums to interact with and then printing your order out and processing it manually in the back office. Remember, digital is a concept and mind shift, it is not the end of all of things to come but I am confident it will disrupt the way we think about businesses soon.

Check back in shortly when I publish the next in the series. This one will focus on how to enabling your people to be ready for this cataclysmic event dawning on us.