AZ India

F E E L A T H O M E www.azindiatimes.com PAGE - 10 Jan 2019 1-844-AZINDIA Digital Transformation: The What & The Why Yogs Jayaprakasam jyogaraj@gmail.com In the introductory article on the Digital Transformation, I talked about the dif- ference between “ Digital Transformation ” and “ Digitization ”. In other words, transforming your company for “ Digital Business ” vs. “ Doing Business Digi- tally ”. I also mentioned that every company will have to embark on the Digital Transformation journey to become a Digital Business. There are so many materials, articles, websites and books that focus on Digital Trans- formation. Most of these materials focus on executive leaders and the companies on what they need to drive trans- formation success. I would like to focus on what each of us should learn about digital transformation, and how do we prepare ourselves to em- brace the change and take advantage of the career op- portunities that come with it. Before we explore the opportunities, let’s establish a common understanding of, what is “Digital Transformation” and why the companies will have no choice, but pursue them. I have read many books and sources on this topic, and there isn’t a single way to define the What and the Why. Below is my attempt to simplifying the definition. What is “ Digital Transformation ”? Digital Transformation is the integration of digital tools and technology that the customers interact with, in their day to day life, into all areas of a business, fundamentally changing how you operate and deliver value to customers. In other words, taking your business to where your customers are. Digital Tools are everything that you, me and our kids use on a daily basis (e.g., Social Media, Mobile Devices, etc.) Digital Technology is the underlying technology that powers those Digital Tools (e.g., Mobile operating systems, such as, iOS, Android, Cloud Infrastructure, Data, Artificial Intelligence, Machine Learning, etc.) Digital Transformation also includes, evolving the organizational culture and ways of working to have shorter feedback loop with your customers to know/ anticipate customer needs, aligning your solution with the evolving Digital Tech- nology, experimenting with new opportunities, and getting comfortable with fail- ures. The idea is creating an evolving organizational culture, that will redefine or disrupt itself to customer and shareholder value. Why organizations have to embrace Digital Transformation? Innovative companies usually define great products or service experiences that the customers will fall in love with. But for most companies, force transforma- tion is a survival issue. It’s usually all their competitors are doing it, are new and smaller players are eating their current pie. If you look at the S&P 500 index, in 1958, U.S. corporations remained on the S&P 500 for average of 61 years, according to the American Enterprise Foundation. By 2011, it was 18 years. Today companies are being replaced every two weeks!!! Technology had driven that shift. Emerging Digital Tools result in constantly evolving consumer behavior. Companies that want to succeed must understand how to merge technology with the business strategy. The IDC Digital Transformation research predicts, “ By 2019, digital transforma- tion spending will reach $1.7 trillion worldwide, a 42% increase from 2017 ”. Forrester Research report, half of companies’ revenue will be driven by digital by the year 2020. In a recent Gartner survey, “ 56% executives said that their digital improvements have already paid improved profits ”. Research shows that 90% of IT decision makers feel that their existing legacy applications take 70% of their investment to run the current business, and they prevent from harnessing the digital technologies they need to grow and become more efficient. It’s very clear that every company needs to drive Digital Transformation, and it is not easy. What are the key areas that will change, and what is the framework for digital transformation? Will discuss in our next Chapter. Note: Opinions expressed here are solely mine and do not express the views or opinions of my employer. So you mean to tell me a stress ball isn't for throwing at people who stress you out?