3 Hard Truths of Digital Transformation

Posted by MPH Group on March 30th, 2021

Although the digital transformation is the way ahead in the times of Covid-19 pandemic, the path is not all that straightforward. The pandemic also has an adverse effect on the journey of digital transformation. As the digital transformation technology picks up at fast speed, it become imperative for businesses also to keep reinventing themselves to thrive and be relevant in the market.

Harsh Truths of Digital Transformation

Covid-19 has pushed businesses to go digital and improve their technology. As a result, companies need to maintain a broader perspective to derive value of the product, re-imagine customer experiences, and innovate new business models. Listed below are some harsh realities of digital transformation that all businesses need to contend.

  1. You need to disrupt yourself 

Usually the chances of survival are stacked in favour of new companies that are new to the field and they face against old legacies. Over the past decade, it has been noticed that nearly 500 new companies have come up with a valuation of billion each, whereas the older legacies have dropped off the list.

The main difference lies in speed and agility. The new companies adopt new approaches, embrace new technologies, and create new business models to meet changing market conditions and create new opportunities. Digital transformation can easily tell the difference between a company’s demise and longevity.

Companies who adopt disruptive technologies are pushed forward with an advantage over those who don’t. With the emergence of cutting new edge technologies going mainstream, all businesses are trying to implement them as part of their digital transformation plans.

  1. Digital Transformation is about leveraging evolving technologies

Digital transformation run as a part of an IT strategy has the risk of being considered as changes for the sake of new technology. Digital transformation is all about business transformations, where leader not only buy into proposed plans but also drive process changes in the company. Adapting to new technology is not about when you use it, it is all about how you use it. Success is derived in creating balanced partnerships so that new technologies can be integrated into the business.

Digital transformation cannot be considered as a “from-> to” process which reaches an end static state. Transformation and change is too great to ever be considered finite and finished. Digital transformation must always be viewed as evolving under a dynamic state of constant disruption.

  1. Digital transformation needs massive shifts in people, operations, and culture.

Most legacy and age old organizations are deep rooted in their operations and culture. In such large and old organization, there will be fear of change, concerns over job security, skill set gaps, and siloed thinking. These factors cause a resistance to change. The main challenging aspect of digital transformation is the human element and the resistance of people to change. People within the company need to prepare themselves for a shift to a digital technology savvy culture.

According to a recent survey, an organization can increase their success triple fold by adopting new digital transformation. Business leaders must ensure collaboration between different units. They need to ensure that their regular standard operating procedures must be modified to include new digital technology. Cultural change is the hardest challenge of digital transformation.

Conclusion

The journey to adopting digital transformation is hard and can have many twists along the way. A lot of changes need to be implemented and several old practices need to be sacrificed in order to move forward. An organization’s resilience and fear to adapt must be bolstered to disrupt the current strategy and come up with new technology ideas.

The question is,  digital transformation a path worth taking? Business leaders who are open to change and willing to embrace digital transformation and think it as a way forward for their business will consider it a path worth taking. True digital transformation will involve embracing complexities, and re-imagining the norm. If businesses are prepared for a game changing path, digital transformation is surely the way forward to their success.

Focusing on customers, adopting modern technology, and having a new strategy based on data insights will help apply to a successful digital transformation. Digital transformation is all about being prepared for a new change and a new way of moving forward.



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MPH Group
Joined: July 30th, 2020
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