The digital environment is highly dynamic. It was just yesterday that big data was a buzzword, and today, generative AI is the talk of the town. How will businesses respond to this unstoppable and overwhelming wave of change? Let's not forget the curveballs we faced when the pandemic hit us. You never know what the future holds next. What we've seen during the pandemic is a glimpse of what businesses need to do to prepare for all this uncertainty.
The cursor has forever shifted from “if” to “how” organizations can successfully navigate the digital age. The global digital transformation market is growing at a staggering CAGR of 16.5% and is expected to reach USD 1,009.8 billion by 2025. However, we find that 80% of “digital transformation” projects across industries are not delivering the results businesses need. .
The question we then face is: What do companies need to do, whether they are giants or aspiring disruptors, not only to survive, but to build a healthy growth trajectory? about it. What course correction strategies should we adopt?
A major reason why digital transformation projects fail is when companies embark on a big-bang transformation mission, but the entire enterprise is not fully prepared for the change. Some of the key challenges we've noticed while working with both digitally native and traditional companies include:
- A single source of truth is lacking, allowing you to manage massive amounts of data and gain reliable, actionable insights.
- Talent is not ready to respond to change with a digital mindset and agility.
- Cultural gaps leading to lack of collaboration and innovation.
- There is a lack of a unified platform for implementation, monitoring, and incremental improvements.
These and many other reasons have led us to consider the fact that we now need to consider the evolution to a digital business, not just selective transformation projects.
Solving the mysteries of digital business
This is not just a technological change, nor is it another program run by the IT team within your organization. Digital business happens when companies take the initiative to consider comprehensive, holistic transformation by leveraging cutting-edge digital tools and technologies, while building an agile, collaborative culture where innovation naturally occurs. .
Digital business includes people, processes, culture, and technology within a company. By embracing digital business, companies can make data-driven decisions and improve the customer experience to unparalleled levels. This paradigm shift drives a sustainable growth trajectory for companies in the digital era, impacting 53% of revenue and 47% of operating efficiency.
It is also important to note that digital business is not a quick fix. It requires a consistent and consistent approach with leadership involvement. Although many companies have made a start, they are unable to derive expected values for various reasons.
In some cases, leaders prioritize favorite projects, overlook the big picture, or set ambitious transformation goals without considering budget, talent readiness, cultural agility, etc. there is. This can have a significant impact on the desired outcome.
So what is the most effective way forward?
Business driven. Results first: Gartner reports that 91% of companies have some kind of digital program in place, and 87% of senior business leaders have prioritized digitalization. But most digital transformations to date have been technology-driven, and we know the consequences. Digital business charts a path that is completely business-driven and results-based.
Involving executives, senior leaders, and employees in your digital business vision is critical to success. By sharing the potential value and charting the path to achieving it, leaders can foster a unified effort towards business goals. By taking this approach, your team will be able to efficiently navigate the journey and take advantage of upcoming opportunities.
Practitioners in action: Building a digital business requires a fundamental shift in the mindset of the people driving this change. They are thinkers who go beyond everyday tasks and explore new possibilities. We call them practitioners with transformational expertise, not just technology expertise. These experts collaborate with their agile teams and business partners to assess the big picture and create a roadmap with incremental and iterative solutions.
The power of a single source of truth: A consistent data strategy that starts with a single source of truth is essential to success in a dynamic business environment. Estimates suggest that nearly 50-90% of enterprise data in over 80% of companies is unstructured in the form of text, video, audio, server logs, etc.
Successful digital businesses are abandoning outdated practices like data pools and warehousing and focusing on data-driven outcomes. Fast, actionable insights from cutting-edge tools enable executives to understand their business in real-time. An integrated and democratized data approach will permeate all departments, enabling faster and more agile decision-making to seize growth opportunities.
The heart of digital innovation: Leaders need to advocate for digital innovation through a strategic approach. For example, you can maximize your cloud ROI by fine-tuning the areas of your business that are suitable for cloud adoption. Employing automation to create a secure and scalable production environment provides several efficiencies. Applying his DevSecOps to the entire software development lifecycle increases agility and facilitates the creation of robust solutions. This visionary approach propels organizations toward transformational growth and resilience.
Seize the digital advantage in a future with endless possibilities
Digital business can definitely help companies increase operational efficiency, make better decisions based on data, improve customer experience, and drive innovation. It has been difficult to predict changes in the business environment in recent years.
But as a digital business, leaders have more control over how the business reacts and can set a course for growth. This can be done using a digital business methodology, a proven route that brings together all the elements of people, processes and technology and implements them on a cloud-based digital business platform. Consistency.
Over the next five years, we can certainly expect that digitally mature companies across all industries will have a sharper competitive edge and be able to take advantage of emerging technologies such as AI/ML and GenAI.
— Ranga Khanapathy, Chief Transformation Officer, APAC, Chief Delivery Officer, Altimetrik.
