Digital is NOW. Just as a wheel, electricity and computers were once new, digital is now a key element of a competitive business model.
Integrating digital into all business aspects from channels, processes and data to operations, incentives and culture is the best way to generate maximum benefit. Easier said than done!
Digital transformation can be undermined by:
- management fear of losing control
- slow decision making as a result of internal politics and silos
- too much focus on technology and not enough focus on people and culture
- difficulties in making digital strategy operational
- delay in realising the predicted commercial benefit
Opportunities in digital transformation:
- Growth through better understanding of client value
- Outside-In customer-centric view in redesigning the business model
- Implementing innovative client experiences, strategies & products
- Client value beyond clients traditional experience through process improvement/re-engineering/transformation
- New revenue streams delivered at lower cost and higher margin
- Improved business intelligence for forecasting & decision making
- Disruption and differentiation become a source of competitive advantage
- Staff retention/recruitment through digital skill development and knowledge
Challenges in digital transformation:
- Managing fear of the unknown including or losing power, control or role/job
- Consistent C Suite and senior management engagement and support
- Decision makers poor understanding of day to day operations
- Stalled decision-making - internal politics/unresolved competing priorities
- Silos precedence over integration, variable customer outcomes & quality
- Technology focus rather than people, margin and competitive advantage
- Inability to prove business value through traditional ROI methods
- Regression under pressure of time, relevance, fear, uncertainty and doubt
- Fear employees will waste time on social media at expense of real work
In a global economy enabled by the Internet of Things,
the digital option is not If but How and When.
Cost Management Specialists engage staff in digital transformation to deliver better client value, increased ROI for all stakeholders and financial sustainability.