The Four Pillars of Digital Transformation

In the complex process that transformation projects go through, enterprises often forget the importance of people transformation in the context of digital transformation. While many organisations put a lot of emphasis on process and technology transformations, people transformation often gets badly neglected or sidelined. This is very sad because the real force behind such transformations must actually be the talent base or the human capital within the organisation.

Brian Solis the famous futurist and thought leader quotes:

Often, a lot of growing organisations realise that they do not have well-defined business processes, which in turn have now started posing a hindrance in their business growth and expansion capabilities. Business process engineering and process optimizations can be useful initiatives to streamline process across different departments of the organization. Implementing systems like Six Sigma, Lean or Kaizen can be considered during this stage to not only upgrade business processes but also define clear KPI’s for measurement and reporting of the process improvement being considered.

Once process optimization is taken care of, it is always a great practice to automate those optimized processes leveraging systems like ERP, CRM, WMS in the form of ERP /CRM systems like SAP, Oracle or Microsoft D365. Also investing in areas like data warehousing, data analytics by leveraging business intelligence tools like Power BI, Tableau or Qliksense can drive quantum benefits for the enterprise. Without process automation, even after process optimization is achieved, true process transformation and realization of its benefits are not possible.

In many cases, even when process transformation is taken care of, there may be a need for technology upgradation and technology transformation as the existing legacy systems have either become technologically obsolete or irrelevant . In such cases, a technical upgrade could be considered to bridge the gap and make certain business applications more relevant in the present . An example of such a technical upgrade could be an ERP upgrade, which may have become mandatory because of the way the architecture of the application itself may have changed over time , which might have now rendered the entire application obsolete.

Of course, this kind of application upgrades that organisations engage in, may also offer a great opportunity for companies to invest in process improvements as some of the old processes implemented earlier may have currently become obsolete. In other cases, companies may like to adopt a completely new technology because of the way, customer demands, and expectations have changed. Companies adopting emerging technologies like VR or AR and launching an AR based online platform to tap into a new or evolved audience are great examples of such technology transformations.

There is no discipline in business other than marketing and sales that has perhaps fundamentally changed more in its overall approach and execution in recent times . The last decade or so has seen the emergence and growth of digital marketing and online sales to a level that we has never been seen or experienced ever before in history. The reason for this is simple: The growth and evolution of the Internet as a technology and the consequent impact it has had on changing business models. The adoption of online business models have fundamentally changed sales and marketing more than ever before. With the rise of online business models in almost every kind of business, whether it is B2B or B2C, new approaches to marketing like content marketing and inbound marketing are gaining more and more prominence with every passing day. New concepts like Smarketing, which is nothing but integrated Sales and marketing rolled into one are becoming more important leading to concepts like Revenue teams and not just Sales teams. As Ecommerce based businesses are building more influence, different kinds of online business models are evolving that include B2C, B2B, D2C and B2B2C. Online marketplaces are becoming more important in every industry and players who will adopt these new business models and innovate successfully will stand a great chance to become market disruptors and emerge as industry leaders. Uber, Airbnb and players like CAFU are great examples of companies who have successfully built disruptive business models to make traditional players almost irrelevant.

The Covid pandemic has proved beyond doubt that digital marketing and shifting to new business model can be pivotal for a lot of traditional businesses which have been primarily brick and mortar firms. Examples include retail and hospitality chains. The adoption of ecommerce after the pandemic , almost overnight by retailers and restaurant chains alike, and the emergence of concepts like cloud kitchens have highlighted the importance of a paradigm shift in the way businesses have had to adapt marketing and sales transformations in the highly VUCA environment that we find ourselves in today.

Change management must be a very important function in every digital transformation initiative and must always be non-negotiable. Transformations often go through a J-Curve and unless the initiation excitement and motivation , which quickly turns into serious organisational resistance is managed well, chaos dominates in such projects, which if not handled well, can lead to failure of the whole initiative itself , instead of the desired transformation. Unless such programs are guided by a transformational leadership, such initiatives will have a very high chance of failure.

Digital transformation is never just about embracing technology alone. It is about using technology to transform business processes and models by orienting the organisational culture in the right direction by a transformational leadership at the top. It is about using the insights delivered by technology and interpreted by a capable leadership and execution team which can take informed decisions to envision new business models, explore new markets to maximize business value for the enterprise while delivering compelling value to customers. This is why organisations that focus on putting talented people in key positions at the start of their digital transformation projects are more likely to achieve much more success with such initiates than organisations who choose to give more importance to just technology and process improvements.

To conclude, unless the required importance and focus is given to each of the four pillars of digital transformation explained above, such programs will often meet with failure. Unfortunately, the truth is that over 70% of all digital transformation fail ( according to Forbes) and if only enterprises take more care in educating themselves better to know how to really drive such projects to achieve more success, many of these failures can be avoided.

Digital transformation is fundamentally reshaping the business landscape, driving innovation, efficiency, and collaboration. By embracing digital technologies, companies can enhance their project delivery process, reduce costs, and improve safety and sustainability. Case studies from companies like Skanska and Autodesk highlight the tangible benefits of digital transformation in construction, underscoring its importance in shaping the future of the industry. As digitalization continues to evolve, construction companies that embrace these technologies will be well-positioned to thrive in an increasingly competitive market.

As organizations embark on their digital transformation journey, MIK Consultivo emerges as a trusted partner, offering comprehensive solutions and expertise to guide businesses towards creating an intelligent enterprise. By integrating SAP software solutions and leveraging MIK Consultivo's capabilities and resources, organizations can harness the power of transformation to unlock new value propositions, streamline operations, and drive sustainable growth in the digital economy.

70% of All DX Projects Fail according to Forbes - Partner with us as industry Experts to Optimize your enterprise systems, drive growth, and stay ahead in the rapidly evolving global markets.

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