Currently, almost every company is involved in digital transformation, in one form or another. But how many of them are actually making the best out of it? A few (as few as 8%); only this percentage of global companies have been able to achieve their targeted business outcomes via making investments in digital technologies. In other words, more than 90% of companies can’t harness the power of digital transformation properly and are struggling to deliver on the promise of a technology-enabled business model.
The major reason for this is the lack of understanding of the concept: going fully digital, and the myths associated with it. Several decades of the technological revolution have introduced many myths and hyperbole that made their way into our minds with digital technologies. Digital transformation is a highly nuanced and intricate subject since most of the leaders are engulfed with assumptions and confusions that act as a barricade for them while adopting technology and embarking on the journey to adopt digitized business approaches.
With this blog, we will try to burst all the myths related to digital transformation so that you can implement it in an effective way that will help you reach your goals. Let’s get started!
Myth 1: Digital Transformation is fully Led by The Chief Digital Officer Digital transformation is not owned by any of the CDOs, CIOs, COOs, or CMOs. It’s nothing but the business transformation in which we used digital tools and technologies, and call it digital transformation. Hence, it only makes sense that the leader is the owner of the business – the CEO, the business owner, or the Board.
Myth 2: Transformation Means Changing Your Business Fundamentals Digital transformation is not meant to change your business fundamentals; in fact, it helps you transform your business operations, processes, and competencies by using technology to discover new business opportunities in a strategic and prioritized manner. The majority of these transformations lay their foundations on the effective use of the tried and tested technologies such as networking and databases, ERPs, and CRMs.
Airbnb and Uber are the leading examples of companies that revolutionized the way we book taxis and hotels by leveraging the most common networking technologies: websites, mobile phones and apps.
Myth 3: Digital Transformation will Drain Your Budget Budget is one of the most pressing concerns for many businesses. They think that digital transformation will be daunting and will require a big investment. But the key is to focus on how you spend the money instead of how much is spent.
Budget can be managed if you strategically position your company in the market since business and investment go hand in hand. It will help you profitably sustain, compete, and respond to emerging market realities. For instance, subscription-led services cloud-based technologies are quite affordable for businesses of every size great and act as the leading enablers of digital transformation.
Myth 4: Digital Transformation is Meant Only for Tech and IT Companies Senior managers who lack the proper understanding of the capabilities of digital technology, don’t know much about the benefits it can offer for their business. Most of them think that it only applies to the technology and IT sectors but it can prove to be useful for any industry.
For instance, radiofrequency identification (RFID) might not be directly associated with an industry such as travel and tourism, but it can be used in hotel room keys, ride tickets or methods of payment to enhance security and speed.
Myth 5: Digital Transformation is All About Updating the Website and Creating an App At the simpler end of the ruler, it’s convenient to think that going digital will only include updating the way that you communicate with your customers. Just a few updates to the existing website or app, and it would serve the purpose. This is the part where most businesses go wrong.
Digital transformation takes a lot more than that: it requires a massive number of potential approaches, both internal and external, which makes it extremely important to work out exactly what you want to achieve before putting your finger on it.
Myth 6: Digital Transformation is Not for Small Companies Digital adoption does no discrimination and isn’t restricted to a company’s size. The demand from the hyper adoptive consumers is continuously gaining impetus. Hence, both the small and medium-sized businesses must engage in a strategic approach that can help them embrace and optimize their business for the digital future. Many SMBs are on the move: 82% of small businesses have implemented some level of digital transformation.
Digital transformation not only helps you enhance operational efficiency but also encourages customer-centric processes while breaking down silos and ensuring that all the departments can collaborate seamlessly throughout the organization.
Endnote Digital transformation is a broad concept that requires strategic planning and a clear vision if you want to derive quality results out of it. Simply discussing or knowing the myths associated with it, won’t rake you anywhere i.e., it won’t enable you to build a winning transformation strategy. There is a lot more to do but knowing what’s important and what’s right while acknowledging the fact that transformation takes time before it can give you the desired results, will help you lay down the cornerstone for successful