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Management
Digital Transformation in organization
Digital transformation, which has always been important as an essential strategic measure, has become more important following the outbreak of the Coronavirus. Fifty-nine percent of 373 IT decision-makers said the pressures from the coronavirus pandemic have accelerated their efforts to drive digital transformation, according to a Business Impact survey conducted in July.
Additionally, despite budget concerns following the COVID-19 outbreak, global budgets for digital transformation technologies and services will grow by 10.4% in 2020 to 1.3B, according to research published in May. The cost of using digital tools hasn’t been as impactful as other technologies, because most of the large-scale projects that are underway play an important role in the broader business strategy, according to economic analyst Craig Simpson.
Digital transformation is generally defined as a set of modern tools and processes used to solve business problems and satisfy customers. However many IT managers use different methods to implement these tools.
What is digital transformation?
George Westerman, scientist, and researcher at MIT University and author of the book Leading Digital: Turning Technology Into Transforming Business, said that digital transformation represents a fundamental rethinking of how organizations use technology, people, and processes to make fundamental changes in business performance.
Digital transformation, ideally led by the CDO, in collaboration with IT managers, HR managers, and other senior executives, requires cross-departmental collaboration to combine business-focused philosophies with agile development models.
These sweeping changes are usually driven by new business models and new revenue streams that result from changing customer expectations about products and services.
The difficulties of digital transformation
Businesses today face digital transformation, but digital transformation is expensive and difficult and requires investment.
While digital transformation has been in many executive orders for a decade or more, why is digital transformation still so difficult today?
Many organizations are digitizing—converting something into a computer-usable digital format—or even digitizing and using digital data and technology to improve business operations.
For example, automating the purchasing process and using algorithms to make purchasing decisions and analytics software to provide insights is one example of digitizing processes and using data and digital technologies to improve business operations. Of course, this type of digitalization affects only the purchase process and is not a digital transformation. To succeed in digital transformation, the entire business must be involved. To take full advantage of the opportunities that digital technologies can offer, there is a need to fundamentally redesign, and then deploy, business models, activities, processes and competencies.
Digital transformation is very slow, and it is 5 times more likely to fail than to succeed, and there are complex reasons for this.
Among other things, digital transformation should be implemented in various areas such as processes, technology, data, culture, strategy, structures, skills, and governance.
Digital transformation is an organization-wide phenomenon and must affect the whole organization. According to Jeanne Ross, Cynthia Beath, and R. Ryan Nelson, people, talent, and culture, as well as transformational leadership, are critical for digital transformation success.