Digital has become part of our everyday lives. Organizations have been reshaping their business models, their internal processes and policies to meet the increasing consumers’ demands. Organizations need to identify top levers from which they could easily take an innovative approach for the digital transformation with the goals to measure the success and assess whether the outcomes are in line with the business objectives. Companies tackle digital transformation for various reasons depending on the industry, the environment or the type of challenges they are facing. The drivers could be internal and external influencers that force organizations to set priority for certain transformation actions by achieving them at a fast pace while impacting fundamentally the organization.
1. Industry chain value transformation.
Digital transformation is reshaping all the industries value chains. Competitors are already in the race undergoing disruption across infrastructure, operations and even business models[1]. In Energy industry for example, ENGIE, one of the major organization in the industry has understood these value chains and the way digital transformation has the ability to radically restructure the company and create value for the business[2].
2. Improving customer experience for a growth perspective
To sustain a viable position in the market, organizations should reshape the customer experience. Competitors are already in the market with aggressive offers that fulfill customers. Companies should therefore be always actively seeking new ways to create more effective and exciting products and services to amaze the customer and enhance their performance in the market. Yet, digital appears to the companies as essential for winning and retaining clients[3]
3. Enhance the productivity of the workers
Productivity becomes critical in the digital age. Emerging technologies enable outstanding productivity when well deployed and used. Organizations need to struggle to improve the effectiveness of their processes[4] by implementing news working tools in replacement of the old ones. The companies need to establish a network of people and organizations that could help them accomplish ideas sharing and collaboration in the digital era.
4. Enhance existing and create new products and services
New products and services are developed to better fit the news requirements and the necessary innovation in the digital age. Also, existing products are enhanced for the fear to be outdated within the digital era. As for an example, Jean Louis Blanc, New business Director states that “At ENGIE, we are focusing our energies on developing the new services our customers need and incubating innovative ideas”[5]
5. Reshape the cost base
New ways of working and collaborating constitute the key factors for driving real operational cost savings. Digital brings in the company a simplification and a lightweight technology that dramatically improves speed to market efficiencies and delivers an increased of the profit margins. Yet, organizations are thinking of the replacement of their old self-hosted business systems and heading for Cloud based systems and for the new model of TCO (Total Cost of ownership) sharing.
Pressure from influencers
The drivers for digital transformation appear to be external or internal influencers that force organizations to put in place actions for digital transformation.
External influencers
- Clients come to the organizations with a variety of challenges and issues, all shapes and sizes, which they need to address. Employees need to have the necessary knowledge and skills to be able to respond to these challenges and create effective solutions, deliver results and add the value that the clients require and paid for.
- New startups companies come up with new business models that take the opportunities the digital provides to beat the leading companies in each industry
Internal influencers
- Business survival or opportunities for businesses to grow their bottom line constitute an internal influencer.
- Employees bring at the workplace new working fashions and technologies that are expanding at a fast pace within organizations.
Taking together these internal and external influencers, organizations have the imperative to continually develop the digital knowledge to respond to their clients and their needs, assess their strategies, their business models, and working with processes to ensure that they are utilizing digital to benefit the business and enable employees to work more efficiently and be more cost effective.
To go further
[1] Digital transformation of the energy industry
[2] Digital transformation according to Nicolas Petit
[3] Digital transformation of the customer experience: Companies still reluctant
[4] Using Digital to optimize process and innovate
http://www.digitalforallnow.com/en/digital-transformation-the-main-drivers-and-obstacles
[5] Interview Jean Louis Blanc, ENGIE Executive Committee member and Innovation and New Business Director Jean-Louis Blanc at Figaro
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