Digital Transformation Myths and Trends in 2021
You have heard of the Fourth Industrial Revolution. It’s arguably the hottest topic for companies, thought leaders, policy makers, scientists, and, of course, technocrats.
Klaus Schwab, founder and executive chairman of the World Economic Forum, who coined the term, writes: “The first industrial revolution used water and steam to mechanize production. The second used electrical energy to create mass production. . The third used electronics and information technology to automate production. Now a Fourth Industrial Revolution is building on the Third, the digital revolution that has occurred since the middle of the last century. It is characterized by a fusion of technologies that is blurring the boundaries between the physical, digital and biological spheres “.
He makes a very important and pertinent point: “Neither technology nor the resulting disruptions are an exogenous force over which human beings have no control. We are all responsible for guiding its evolution, in the decisions we make every day as citizens. , consumers and investors “.
While digital transformation as a term is still misunderstood, digital transformation as a business imperative is widely shared today. So what is a digital transformation in practice? Is it an IT project? Or the introduction of some great tools in the company? Or the addition of a mobility-driven customer relationship management (CRM) initiative to better engage customers?
As an organization, if you’re looking to embark on the digital transformation journey or are trying to stay away from it, there are still some digital transformation myths you need to steer clear of. If you want to lead your organization through digital transformation, the first step is to understand the realities of digital transformation, rather than getting carried away by the hype.
In this article, we use excerpts from some prestigious industry reports / white papers to dispel some myths.
The reports / white papers we cite include:
World Economic Forum (WEF) White Paper on Digital Transformation of Industries: Digital Enterprise, developed in partnership with Accenture
Forrester Report, The Digital Business Imperative, written in collaboration with Martin Gill and Nigel Fenwick
Digital is a fad; a trend my company doesn’t need to think about
digital transformation process
Digital has transformed every company’s market environment and the pace of change is accelerating.
The WEF White Paper states: – There is widespread recognition among leaders in most industries that the role of digital technology is rapidly shifting from Digital Transformation being a driver of marginal efficiency to a driver of fundamental innovation and disruption. Digitization is the cause of radical and large-scale transformations in multiple aspects of the business, providing unprecedented opportunities for value creation and acquisition. Business leaders across industries are grappling with the strategic implications of these transformations for their organizations, industrial ecosystems and society.
Digital transformation means exceptional customer experiences powered by new technologies
Digital has had an impact not only on channels and customers. It is revolutionizing organizations from within, changing the way they do business. Digital offers new opportunities for organizations that can embrace technology quite quickly. Accelerate time to market, reduce costs and unlock new revenue streams.
Forrester Report states: – Digital business is not just about the customer experience; it is also a way to promote operational agility. Digital operations can increase the speed of market access, make employees more productive, drive leaner processes, and maximize resource utilization.
Let me build an app. My digital transformation is over.
Digital transformation isn’t about introducing a few tools to change a particular aspect of your business, whether it’s employee collaboration or customer transactions.
The Forrester report states:
Digital changes your relationship with your customers radically. You can’t address this change with a bolt-on digital strategy that adds an app here or a site there. To stay competitive, you need to redesign how your business creates value for your customers in the digital age.
Redefine your business not as a set of products and services, but as part of the ecosystem of personal values that your customers assemble according to their needs and desires. Learn to increase value by expanding your company’s role neg