Why digital transformation? What is it and why does your company need it? Keep on reading to know more.
What Is Digital Transformation?
Digital transformation (Dx) is a big shift in the way companies create value for customers using digital technologies. Companies that master it not only survive but also thrive in the digital economy.
Dx is unfolding as a result of these 3 trends.
- The shift from the internet of things to the internet of value
- The shift from cloud to cloud-native applications
- Also, the shift from monolithic application architectures to microservices architectures
Dx is all about building new business models, not just incremental improvements to existing ones. It’s also about creating new revenue streams through innovative offerings and business models enabled by technology.
Why Digital Transformation?
The Growing Demand for Digital Products and Services
Dx will help your company create new products and services that provide better value to customers. Companies that embrace Dx grow faster than those that don’t. And they’re able to drive growth even during difficult economic times.
It Will Help You Create New Revenue Streams
Dx will help you sell new products and services. It will also help you develop new revenue streams from existing products and services.
It Will Help You Build Safer and More Secure Products and Services
Dx will help you build more secure and reliable products and services. Building a secure product or service requires collaboration across teams and testing different attack scenarios. Then, this is to understand potential risks and prevent them from causing harm to customers. Dx will help you do all this.
How to Do One?
So, why is Dx important? Because it’s the only way to grow revenue in highly competitive industries. For example, companies in the banking sector are competing with a host of fintech companies offering new financial products and services. Dx will help your company adapt to the changing world and ride this wave of change.
Dx is a long journey that requires commitment from everyone in the organization. So, to do one, your company needs to determine the business value of Dx. Then, it should choose the best approach to achieve that value.
Dx is not just about technology. It’s also about changing people’s behaviors and mindsets to embrace new ways of working. This requires strong leadership commitment and support at every level in the organization.
So, when you’re embarking on Dx, keep these tips in mind:
- Make a clear vision statement. Ensure that everyone in the organization knows your vision and is doing what they can to achieve it.
- Initiate a Dx program. Assign a high-level champion to run it. Ensure that there’s a budget for Dx.
- Create a digital transformation team. Include representatives from every part of the organization. This will help you develop a big-picture view of Dx and identify all the steps involved in it.
- Leave the past behind and focus on the future. Dx is not about going back to old ways of working or copying what others are doing. Instead, it’s about embracing new ways of working that are better suited for today’s realities.