Digital transformation has been on the agenda for organizations for years. 2018-2020 will be a critical time for leaders in all industries to plan and implement this.
There is widespread agreement among senior executives that digital technology’s role has changed – it no longer serves to drive marginal efficiency but instead as a catalyst for innovation and disruption. In the future, companies will have to make a series of decisions to ensure they don’t fall prey to disruptors and competitors.
85% of critical decision-makers believe they only have two years to master digital transformation. While there has been some progress in digital transformation over the last few years, it is now urgent. 59% of business executives need more time to adapt.
What is the future of digital transformation? And what should leaders consider when planning its implementation and development?
Technology is just one thing that matters
Information Age reports that digital transformation will be the dominant business strategy for 2018. CEOs will look at their CIOs as strategic partners to help them navigate significant changes.
The US is spending $1.5 trillion on tech, which is a record high. To get the most from emerging technologies, organizations must ensure that they have a variety of elements in place.
Technology that tracks, measures, and responds to critical shifts in a consumer-dominated world can make or break an enterprise. Automation and artificial intelligence (AI) are enhancing the workforce’s efficiency. Customer obsession and insight are the basis of organizational success for 2018. The CMO can now take on the responsibility of driving growth or give that role to someone else in the C-suite, such as the chief growth officer.
Digital leaders must prioritize optimizing the customer experience, enhancing business outcomes, and connecting critical dots between people and information across multiple channels to succeed in 2018.
While technology is a critical component of the digital shift, it’s not the only factor. Senior executives must cultivate the right culture to transform their business into a digital one. It is essential to create an executive structure that works for your organization.
Clarify who is in charge
In 43% of organizations with a mature digital strategy, the competition between departments to control digital is seen as the most significant barrier to digital transformation. This confusion can be avoided if everyone knows their role. Clarifying who is responsible for each process will ensure that your digital transformation strategy has maximum impact and is sustainable.
Each business has its unique service, product, culture, model, and structure. But when it comes time to migrate to digital, choosing the right person or people is crucial. Many experts believe the CDO will become obsolete as the CIO takes on more technology and customer service responsibilities. However, this is a linear outlook.
The CDO and CMO can work together with the CIO in a collaborative manner to accelerate the digitalization process. They should use a mix of data analytics, technology insights, and innovative consumer marketing to help businesses thrive in the age of the customer.
Strong leadership often involves collaboration. As long as everyone knows their goals, aims, and responsibilities, your business can digitally transform seamlessly.
The digital skills shortage
Organizations must be able to spot patterns and trends in consumer behavior and react to changing situations. To help businesses become more intelligent and savvier, and to be better equipped to adapt to new trends and technologies, by 2019, 40% of digital transformation initiatives, and 100% of practical IoT efforts, will be supported with cognitive or AI capabilities.
The issue is finding the right talent to make this technology work. A recent study found that 65% of CIOs believe that they need more skills to achieve their goals. Over half feel that acquiring or developing new skills should be a top priority. To thrive in today’s modern business environment and to continue connecting with your customers on a meaningful, valuable level, business leaders need to foster a culture that encourages continuous learning.
The organization can progress as a unit by creating forums where team members can openly discuss the new technologies used in the business and how they affect their roles. They can also exchange data, skills, and information. You can ensure that digital transformation is at the heart of your business strategy by providing your employees with relevant digital courses and giving them time, tools, and resources to continue building on their talent.
There is a global need for more digital skills. You can close the gap by taking the initiative and spotting weaknesses in your organization. You can also implement processes to ensure new learning programs are created to keep up with the latest trends.
Be prepared for significant changes
According to Forrester’s 2018 predictions, companies that want to secure their position in the future will focus on the impact of digital technology and the evolution of the internet.
AI and Machine Learning technology is already massive disruptors in the business world. This means that the members of the C suite must commit to adopting new operating models which add real value to their organization.
According to predictions, blockchain is unlikely to disrupt any industries. However, companies that understand its potential and power will continue investing. Tech leaders will also begin experimenting with Quantum Computing, following the lead of industry leaders such as Microsoft, Google, and IBM.
Disruptive companies will also transform their traditional business model into a business platform connecting with customers directly or via intermediaries and business partners. In the boardroom, questions will revolve around new platform-based business models, partnership ecosystems, and innovative ways to organize the business.
Business leaders can prepare for these changes and remain one step ahead while forming long-lasting relationships.
By 2020, the ability to create digitally enhanced products, services, and experiences will be essential for 50% of Global 2000 companies.
As a leader in digital transformation, you must be transparent and open with your team about the steps you take to improve the future of your business. You can increase your chances of success by allowing others to access various technologies and information and demonstrating how they can support major changes in the industry.