An enterprise looking to sustainably grow into the increasingly digital age MUST embark on its digital transformation if not already. It isn’t a luxury, rather a necessity under the present digital environment.
It is a natural evolution. The pace of change is accelerating and these emerging technologies are threatening to disrupt the landscape and result would be those refusing to change will fall like a house of cards. Today, companies are being replaced on the S&P approximately every two weeks.
Technology is driven a fundamental shift where business processes have to be re-designed to fully align with the realities of the digital environment. The business model transformation is thus the very foundations of the change followed by adapting various technologies in the enterprise environment.
Enterprise leaders have become aware this wave of change and are increasingly allocating resources to best augment themselves. Worldwide spending on technologies and services that enable digital transformation (DT) will reach $1.97 trillion in 2022 per the (IDC), achieving a five-year compound annual growth rate of 16.7 percent along the way through to 2022.
This is now perceived as the long term investment which must be given a priority at the boardrooms and c-suite ranks well beyond just the CIO’s domain.
“IDC predicts that, by 2020, 30 percent of companies will have allocated capital budget equal to at least 10 percent of revenue to fuel their digital strategies,”
Organizations are falling different approaches to their DT Organizations and at different pace. But speed is of essence as executive leading the DT journey have to show that digital initiatives are translating into rich dividends for the organizations.
The starting point is identifying a digital leader who can drive the digital vision of the organization and then embarking on a journey which requires fundamentally re-designing the entire operations from outside in based on the vision that customers should have a seamless end-to-end digital experience.
Improving customer experience is the starting point and therefore requires a re-think of the business where the back-end operations are aligned and in harmony with the digital front that is effective and can serve the customers.
In the following chapters, we will discuss the framework for creating an effective digital transformation framework ..