Going Through Digital Transformation. What’s next?
Digital Transformation is a huge topic now. Most software vendors have adapted their products to include the Digital Transformation message. Transforming into a digital company is no longer a choice and it is clear that the companies that transform faster can develop a competitive advantage that will serve them for years while the companies that do not will slowly fade into irrelevance.
Digital Transformation is the change in an enterprise that makes it acquire and deploy the best in class technology assets and systematically removing analog or manual touch points, handoffs, processes and decision making. It is the ability of the enterprise to understand, assimilate and leverage the latest technology trends such as cloud, mobile, APIs, AI, Blockchain, ChatBots, Analytics, IoT etc.
Digitally Transformed. What’s Next?
A key topic of concern around digital transformation is that this discussion often exists around a technology upgrade discussion. Often led by Technology and IT teams, digital transformation ends up being the deployment of new technology made available to the product and business teams as a platform. This is a recipe for failure as technology simply being made available to the enterprise has no impact on the viability of the enterprise and its business model.
Digital Transformation changes how an enterprise operates by making key systems, processes, interfaces, and decision making digital rather than analog. However, true innovation requires the technology tools delivered out of a digital transformation to be utilized to generate customer value. Customer value is generated by solving actual customer problems using technology capabilities. For example, a chatbot and the associated platform to develop, operate and manage the chatbot is useless unless the chatbot delivers value such as enabling users to discover relevant information thereby addressing pain points, increasing satisfaction and reducing support costs.
Key KPIs that should reduce as a result of Digital Transformation are “Time to Market” and “Time to React”. A digital organization is able to understand problems and issues faster, ideate and built solutions and bring these solutions to market faster. Digital transformation that does not significantly impact these metrics is almost always a tech/IT only investment that only really increases the operational costs associated with the maintenance of the old and the new technology stack.
The enterprise needs to strive to enter a new phase post early wins in the Digital Transformation: Digital Innovation. This is the phase where the technology deployments from Digital Transformation are leveraged to build new or improving existing applications that solve real customer problems. Enterprises should strive to improve their Time to Market of new applications or solutions and should see a marked improvement in customer satisfaction, retention and revenue metrics.
It’s All About The Customer Experience
Ultimately, the real reason to undergo digital transformation and become digitally innovative is to improve customer experience. The latest and greatest technologies enable enterprises to deliver value (new or old) with higher quality, accuracy, ease of access, higher reliability and higher resiliency. These changes might not generate new revenue streams however they make the experience sticky thereby fortifying existing revenue streams and making it much harder for competitors to steal the customers or differentiate based on simply operational efficiencies and effectiveness.
The AI Company platform is designed to enable Digital Innovation providing up to a 25X speedup at 1/10th the cost and minimal risk. Talk to us to see how we can help.