Although we often write about and discuss digital transformation, we often fail to identify the end goal we are really trying to achieve. We talk at great length about data, analytics, speed, information logistics systems and personalized user experiences, but none of these are the end goal. Ultimately we must digitally transform so we can remove the “fog of war,” and have clear visibility and insights into our businesses and the needs of our customers. The end goal of digital transformation, however, is the ability to rapidly act and react to changing data, competitive conditions and strategies fastest enough to succeed.
Knowledge is nothing, if not tied to action. In a recent survey of 500 managers, they reported the number one mistake companies are making in digital transformation is moving too slow. They may have all the necessary information and strategies, but if they are incapable of acting or reacting fast enough to matter, then it is wasted. Digital transformation includes the information logistics systems capable of collecting, analyzing and reporting data fast enough to be useful, plus the ability to act and react in response.
The ability to respond, may involve transforming many different IT systems, business processes and organizational structures to facilitate business agility and speed. It will likely take a lot of work and strong leadership. This unfortunately is not always available as managers surveyed list employing the wrong leadership for digital transformation as the third biggest mistake companies make.
Is the ROI (return on investment) for digital transformation worth all the trouble? The answer is found in a recent survey we conducted involving 2,000 executives where they identified the top 5 ways digital transformations drives value generation as follows:
- Accelerates speed to market
- Strengthens competitive positioning
- Boosts revenue growth
- Raises employee productivity
- Expands ability to acquire, engage and retain customers
A quick review of the top 5 show they are critical. The number one value generator is “accelerates speed to market,” in other words it enables faster actions and reactions.
Follow Kevin Benedict on Twitter @krbenedict, or read more of his articles on digital transformation strategies here:
- Digital Transformation and the Ignorance Penalty
- Surviving the Three Ages of Digital Transformation
- From Digital to Hyper-Transformation
- Believers, Non-Believers and Digital Transformation
- Forces Driving the Digital Transformation Era
- Digital Transformation Requires Agility and Energy Measurement
- A Doctrine for Digital Transformation is Required
- The Advantages of Advantage in Digital Transformation
- Digital Transformation and Its Role in Mobility and Competition
- Digital Transformation - A Revolution in Precision Through IoT, Analytics and Mobility
- Competing in Digital Transformation and Mobility
- Ambiguity and Digital Transformation
- Digital Transformation and Mobility - Macro-Forces and Timing
- Mobile and IoT Technologies are Inside the Curve of Human Time
Kevin Benedict
Senior Analyst, Center for the Future of Work, Cognizant
Writer, Speaker and World Traveler
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***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I am a mobility and digital transformation analyst, consultant and writer. I work with and have worked with many of the companies mentioned in my articles.
