Digital transformation is impacting businesses across every industry.
While the ownership and implementation of digital transformation can be inconsistent, CIOs often own it. A part of this process is digital initiatives, the majority of which are driven (and paid for) by IT. Despite this, the IT department is not the most likely to lead the implementation of digital projects. Instead, these are conducted by individual business units or digital divisions. As a result, many executives in IT and across other teams feel that the IT department needs to take a more active role in transformation, particularly when it comes to innovation.
With digital technologies now driving innovation, the IT department plays an integral role in adoption integration and execution. In fact, by 2018, 35% of IT resources will be spent to support the creation of new digital revenue streams, while 2020 will see almost half of IT budgets tied to digital transformation initiatives. So, how can IT work more efficiently and effectively to drive transformation?
Adopt new technologies early
To drive a forward-thinking and innovative organization, your business – and workforce – needs to know and understand the new technologies on the horizon and how, or if, they can help transform the industry as a whole.
Technology adoption typically occurs in an S-curve, with exponential growth from ‘early adopters.’ While telephones took more than 70 years to reach 50% household penetration, radio took 28 years, while the internet took just a decade. As a result, the rate of technology adoption should continue to accelerate so that each new technology outpaces the adoption of its predecessor.
One example of IT driving early adoption of technology is through automation, a tactic that can drastically reduce costs and free up revenue for reinvestment in technology. By combining automation, AI, and machine learning to process claim adjustments, healthcare software company TriZetto saved 44% compared to manual administration. In the banking sector, Blue Prism uses automated 14 core processes and achieved a typical 30% cost saving per process, improving service quality and accuracy.
As the digital economy continues to evolve, it drives technology innovation. This brings a future founded on platforms and algorithms, ‘things,’ and ‘bots’ to generate revenue and efficiency.
Drive digital leadership
56% of executives believe that a lack of digital leadership to define a clear and concise strategy is a critical barrier to delivering an improved customer experience through digital transformation.
As the world migrates to a digital mindset and consumers become savvier, it’s the responsibility of organizations to ensure they cultivate digital leaders across the workforce, particularly in marketing and IT departments – the driving force behind a brand’s evolution and progress in the modern age.
At its core, the IT department can drive digital leadership by helping internal departments prepare for digital transformation, promoting cross-departmental fluency in digital technologies, helping encouraging individuals to develop digital competencies, and instilling a willingness to experiment.
By harnessing the power of emerging digital technologies to help key marketing department members understand how to transform big data into decisions that improve business performance, the IT department can promote digital leadership and, as a result, drive the business forward.
Match the Pace of Digital
In many organizations, there need to be better turnaround times required to achieve marketing initiatives and the capabilities of IT. Traditionally, IT departments have been involved in large-scale projects requiring months or even years.
This ‘tried and tested’ approach poses a considerable challenge in the department’s interaction within the business, as the pace of digital technologies now requires agile projects to be delivered in sprints of just two weeks.
As time passes, IT must provide rapid showcases to demonstrate project progress. This will be achieved as more digital natives join organizations to bring a ‘Twitter mentality’ to IT, which demands faster and more visible project progress and updates.
Embrace experimentation
The raft of new digital technologies presents tremendous opportunities for experimentation, whether using a new app or automation system that can make workstreams more aligned and processes more accessible.
For example, in a nationwide initiative to use digital technologies to assist with an overstretched workforce, the NHS introduced the Google DeepMind AI app to help treat patients more efficiently.
The collaboration between Google and the Royal Free London NHS Foundation Trust is being rolled out in certain hospitals in the UK to help improve blood analysis and alert carers if a patient is at risk of kidney failure.
This initiative is set to save time and money and ultimately help save lives. However, in its early stages, this is a prime example of an organization embracing digital experimentation to help improve its service.
Collaborate with other departments
While IT may be at the heart of digital services, there is also a need for collaboration with other customer-facing teams within the business. With digital disruption a constant threat, 78% of executives say their IT and marketing teams could be better aligned to deliver on their digital transformation efforts.
Marketing and customer service professionals are already staking claims to leadership roles within digital transformation projects alongside IT by expanding their technical knowledge and using it to assist with their strategic efforts while using data and consumer behavior trends to improve how they interact with their customers.
93% of organizations that have strategically coordinated their digital initiatives are more effective than 63% who still need to implement a cross-departmental strategy. By working across businesses and using talents, insights, data, and technologies, a company can gain a competitive edge and engage with its target audience.
“If everyone is moving forward together, then success takes care of itself.” – Henry Ford.