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Digital transformation: the challenge beyond implementation


Digital transformation: the challenge beyond implementation

Is it true that the coronavirus achieved in a matter of months what great leaders in the digital industry have not been able to achieve in years? Do not confuse the digitization of companies with a process of Digital Transformation, they are two very different concepts. It is not about acquiring a CRM for sales, nor about creating corporate accounts in all social networks. Or even about setting up an E-commerce or digitizing all the documents that were previously on paper.

A Digital Transformation process implies profound changes within organizations. It is in a few words the reorientation and/or implementation of resources towards an effective model of use of technologies, digital culture and technical skills,

Currently, companies are experiencing important changes globally. There are more and more technologies and advances within reach that have a great impact on important sectors of world economies. Entrepreneurs, leaders, managers, directors and executives face important challenges every day in their positions. To meet the expectations of their markets, to increase productivity and improve profitability.

The speed of growth of technology is exponential and very sure before making any decision that could influence the course of your company vision. You should ask yourself questions such as: What organizational capabilities are necessary to achieve a sustainable and competitive business in this new world? Digital environment? How can technology positively impact my business model? How to implement new technologies and evolve in their adoption?

The answer is with a Digital Transformation strategy. A process through which your company or business will be able to incorporate emerging technologies and digital processes. With the aim of achieving a more efficient organization adapted to its environment. But for it to achieve a real and transcendental impact, the first step is to be willing and open to the development of deep and true changes within the organization.

Digital Transformation process

If you are one of those who are beginning the path of change in your organization or are considering implementing a complete business reorganization plan, you are surely also wondering: how to start the implementation of a successful Digital Transformation process? For this it is important to take into account the capacity in its business structure, speed of adaptability and precision in its execution. In order to produce benefits in the visible interactions with the client. And also in the less visible internal operations, a correctly structured Digital Transformation model is defined by four key axes, framed in leadership and digital capacity:

  • Vision and leadership: it is vital to define a road map with a leadership that must be exercised from the first executive level. For this reason the heads of areas must assume a committed leadership. They must establish the direction, generate coordination and impulse in the collaborators. To guarantee that everyone knows the plan in depth and thus advances in the established times.
  • People and processes: the attitude displayed by employees is as important as the work they do. They must be positively minded to receive the change and enhance their skills. This way they assume an analytical mentality. They must be prepared to admit mistakes and feel encouraged to adopt an open attitude towards research, training and innovation.
  • Customer experience: analytical and big data capabilities must be built. It is critical to have an in-depth understanding of customers to place them at the center of the business. Variations in their behaviors, preferences, dissatisfactions, use of digital channels and purchasing behaviors can positively or negatively influence the business. You have to turn sales into personalized experiences.
  • Business model: the way in which value is generated, captured and delivered to customers must be redefined. Without forgetting its value in the local market, it is necessary to transform towards a model with a global vision. All those involved should be constantly aware of innovations. Such as technological disruptions, cloud, gamification, big data, artificial intelligence, IoT and main digital trends that will mark the coming years.

Digital Transformation framework

A digitally transformed organization obtains more benefits than those that continue with the traditional business model. By betting on a digitization process and adopting innovative business models, your organization will be able to:

  • Redefine the vision of the company with current guidelines. And focused on the desire of employees to have a better quality of life.
  • Transform the customer experience. Redesign the contact points with the objective of increasing levels of interaction (engagement) that, without a doubt, will be reflected in the increase in income.
  • Create new competitive advantages. Innovation in products or services that meet real needs and provide diversification to their business verticals.
  • Promoting a culture of innovation within the organization generates a more participatory work environment due to the empowerment of employees.
  • Increase efficiency in the structure and management systems of the different areas and their internal processes: marketing, HR, R&D, production, marketing, quality, finance.
  • Assume an analytical mindset. Promote Big Data to turn data into knowledge and sound decisions.
  • Improve customer acquisition, conversion and loyalty. The incorporation of new strategies will directly impact the relationship with prospects, potential and current customers.

Digital Transformation: percentage of capabilities

Although it is gaining greater impact. According to the Capgemini Research Institute, by 2020, 60% of companies say they have digital capabilities and 62% leadership. To undertake transformation processes and incorporate new technologies. There are still many barriers those that must be faced and that can alter the process:

  • The resistance. If there is no attitude and motivation on the part of the collaborators and leaders of the organization, the model does not work.
  • Investment. The development and implementation implies a previous investment that not everyone will be able to assume.
  • Little leadership. Leadership must be with commitment, whoever does not assume a role of potentiating capacities will not achieve success.
  • Inadequate skills or little experience. The lack of properly qualified personnel can affect the direction and orientation of the process.
  • Waste of acquired technologies. Lack of use or little use of the platforms, leaving aside their true potential.

The transformation begins with a different way of thinking, with a change of mentality. Beyond acquiring new technologies, or believing that the company was transformed simply by investing heavily in an innovative digital platform, we must commit to leadership to drive change. Digital Transformation is the integration of digital technology in all areas of the business. It is a cultural change that requires organization and a continuous evolution of the status quo. A experimentation and willingness to fail. It is detaching from old business processes in favor of new practices. It is a change in leadership; it is promotion of innovation, and it is the development of new business models.

Maximize the value of your business with a range of high quality technology services. At Interfaz we have Digital Transformation consulting. To guide you on the path to digital maturity. By engaging in the key areas of your business, to improve your competitiveness and boost your potential.

Deloitte 2020 “Global Technology Leadership Study”
Capgemini “Digital Mastery 2020
Capgemini “Smart Digital Transformation”
Aicad Business School “Future of Digital Transformation in the world”