In the 21th century, there have been enough examples when technology companies have collapsed and bankrupted – especially during the Dot-com bubble. Yet, digital transformation has forced many corporations to rethink how they conduct business and what can they do to beat their competitors. One may securely say that digital transformation has become the key force of disruption in the early 21th century.
As a matter of fact, digital transformation is an actual rethinking of how an organization uses technology to create and deliver value to its end-users. The difficulty of becoming a successfully digitally disruptive firm is the necessary of collaboration between the different departments of the firm.
Despite the growing number of digital behemoths and the countless industries reshaped by such digital disruptors, it is not getting any easier to carry out a digital transformation of a company. As several surveys show, less than 30 percent of the firms succeed with their digital transformation efforts.
Digital transformation is a formidable task not only for the companies in the established industries. Even tech savvy industries, such as media, high tech, and telecommunications, are struggling, with less than 26 percent being successful in digital transformation. Yet, the rate of success for the established industries (such as oil, pharmaceuticals, and infrastructure) is even more dismal, where the rates vary from 4 to 11 percent.
Digital Transformation Drivers
According to the research by McKisney, there is no universal factor or way to be a successful digital disruptor. More or less, the companies oftentimes fall for different factors of “digital transformation success,” as well as they define different crucial drivers of success.
However, there are five main categories that match the processes realized and materialized by the most digitally successful companies. These include: giving workers an opportunity to work in new ways, establishing capabilities for the workforce of the future, having tech savvy, strategically thinking leaders, upgrading day-to-day digital tools, and conducting frequent communication via the traditional and digital channels.
Digital Transformation Recommendations
Given the complexity of the entire transformational process, there is no universal set of recommendations and tips that would surely work. Nevertheless, there are certain tips you should surely take with you.
- Define and focus on a clear set of objectives. You should know what you want and can achieve with a digital transformation. For that purpose, you have to define a clear set of objectives and focus on them – regardless whether you’re starting from scratch or trying to transform an existing business model.
- Be okay with disrupting yourself. Sometimes, firms that were the most successful have been forced to disrupt themselves. Digital transformation is not always caused by the market forces, customers’ demands, or actions of the competitors. If you feel the need to disrupt your own business processes, it is likely that you should give it a go.
- Adaptive design is a must. The days when strategies and policies had been written months and years ahead are over. Be ready to make changes to your digital transformation strategy even as often as every weekend.
- Promote agile execution. Conservative-thinking firms tend to be the biggest laggards of the digital transformation. Encourage even lower-level employees to take risks and make decisions.
- Your scope must be large. When thinking about the scope of changes, you must be bold. As once Mark Zuckerberg, the founder of Facebook, said: “Move fast and break things.”