Digital transformation is now an integral part of the economic landscape. It has penetrated many organizations across the globe and has tremendously affected many facets of life, especially customer experience.
In this part two of a 2-part article, we will discuss the evolution of digital transformation economy or DX economy, and how it is present in many business processes worldwide. You can read the first part of the article here.
Here Comes the Digital Transformation Economy
The role of digital transformation in many organizations continues to evolve with the accelerating use of digital technology. When International Data Corporation (IDC) presented the “3rd Platform” in 2007, they reported that technological pillars would be driving the industry’s growth and innovation. The technologies include cloud services, mobile services, Big Data and analytics, and social networking. Over the years, new core technologies or innovation accelerators were added to the 3rd Platform. These include robotics, 3D printing, natural interfaces, cognitive systems, Internet of Things (IoT) and next-gen security.
With these new accelerators of innovation and transformation, enterprises are able to scale up their digital initiatives more effectively.
Role of data and information in Digital Transformation
Information is at the core of digital transformation, yet information management and digital transformation do not always go together, unfortunately. In fact, information chaos exists, according to John Mancini of AIIM (Association of Information Management Professionals). The four problems include the following:
- How do we automate our business processes?
- How do we get insights from all the information we’ve gathered?
- How do we make use of information to better engage customers, partners and employees?
- How do we manage the risk of increasing volumes and content complexity?
Converting these problems into solutions will provide the missing link between information management and digital transformation. Information management is also an enabler in achieving digital transformation goals.
Activation of Intelligent Information
Digital transformation is not just about managing information in this information-driven business landscape; it’s about managing information intelligently. It is about artificial intelligence and intelligent information activation, making sense of the data and putting information at work. Intelligent transformation management makes a big difference in digital transformation. Deriving insights from the gathered information and making these data actionable are crucial to having a successful and meaningful digital transformation.
An intelligent information activation approach to digital transformation includes the following attributes, according to i-Scoop, an educational resource and consulting company:
- Speed and agility – Speed is a differentiating factor, and this applies not just to the systems but to human decisions too. For example, business leaders need to make quick, smart decisions on which to prioritize and why. While many areas in the business can be automated, organizations still need human intelligence and skills to come up with innovative ideas.
- Security and governance – This refers to the holistic approach to security and information management. All information and data must be protected since they are the backbone of the digital economy.
- Accuracy and quality – It is making sure all the information gathered are error-free to ensure quality output. The consequences of having wrong information from manual data entry to inaccurate data processing are not only costly; they can be deadly too, as in the case of healthcare systems.
- Intelligence and decisions – Content analytics and artificial intelligence are the key factors in extracting meaning from all collected data. Intelligent information and smart business decisions could open the door to innovative and brave business ideas.
Digital Transformation in Diverse Industries
It is interesting to note that even though each business operates differently, digital transformation exhibits similarity across industries. Here’s a closer look at the different industries:
- Government and Public Sector
This is a wide sector that encompasses the national and local government units, government agencies and public sector entities. While they cover a broad range of services, they share something in common – challenges and priorities especially from the context of digital transformation.The citizens clamor for a better experience in using government and public sector websites and other digital programs. People are also looking for efficiency and transparency in the digitization of processes.The impact of digital transformation on government and public sector cannot go unnoticed. This research identified two key drivers of digital transformation in this sector:
Cost savings – With several choices available and changes happening in many areas, cost transparency and savings are essential.
Improved citizen experience in digital perspective – Modern “digital” citizens are faced with websites that are less informative and not helpful. Paper-based information and processes are still very dominant, but the experience is more frustrating. Meeting the citizens’ evolving needs is an integral key to digital transformation.
- Utilities Industry
This industry has a rich potential when it comes to digital transformation. Many digital initiatives can result to cost savings, enhanced customer experience, innovative offerings and alternative business models. Optimizing Big Data and Internet of Things (IoT) can lead to unlimited possibilities in servicing customers and improving supply chains.
- Retail Banking
There is a growing demand in this industry for digital transformation. Many financial institutions are undergoing transformation to meet regulatory compliance and consumer demands, as well as to improve processes and efficiency.
The Human Factor in Digital Transformation
Even though digital technology is a key factor in achieving digital transformation, it goes beyond technological aspect. It also involves people.
Digital transformation is about using digital technology in improving processes, enhancing customer experience and building new business models. An equally important aspect of digital transformation is the people and the changes it brings to our daily lives and the society. Clearly, the changes that we experience cannot be delivered by technologies alone. The human factor is an important part and, in fact, a catalyst for digital transformation.
In this digital age, enterprises across industries need to dramatically improve the way they do business if they want to be market leaders. Digital transformation has to happen, no matter what.
One of the many things that organizations need to keep in mind is that digital transformation is more than just a technological phenomenon. It involves human dimension. It includes innovation and optimization of business processes and customer experience.
Photo courtesy of Brian Talbot.