4 objectives your digital strategy should address
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4 objectives your digital strategy should address

4 objectives your digital strategy should address

Article

Most companies across the globe are in the process of defining or executing a digital transformation in response to what has been tagged ‘fifth industrial revolution’ which is expected to significantly change the way we live, work and interact with one another. This technology driven revolution is projected to be faster, more scalable and adopted by more people than perhaps all industrial revolutions prior.

 

According to a recent EY report, organizations must ensure that all digital transformation initiatives embarked upon meet at least 2 of the following objectives; improve customer experience, empower employees, increase revenues and optimize operating costs.

A significant number of organizations are struggling to achieve the return on investments from their transformation; resistance to change is cited as one of the most prevalent reasons for failure. Digital introduces new ways of working, different from what most experienced employees are used to. This typically leads to resistance and low adoption of the new operating model. To win the adoption battle, organizations must carefully consider the impact of transformation initiatives on people (skills, roles and KPIs), existing employees need to be upskilled and empowered to function in the digital age, the introduction of external skills may be required for specialized functions (cyber security, data science, enterprise architecture, customer experience mapping, software development etc.). Most importantly, management needs to clearly communicate how digital initiatives will assist employees perform their roles more effectively.

According to Akinsope Roberts, EY Digital Solutions Architect for West Africa “Customers expect a significantly improved experience on digital channels. Traditional organizations are more often than not compared to disruptors such as Facebook, Amazon, Uber, Jumia, Air BnB, Wakanow etc., who have harnessed the power of emerging technologies to deliver intuitive customer-oriented business solutions. Emerging technologies such as block chain, artificial intelligence and IoT amongst others are undoubtedly important enablers for digital, but organizations must keep in mind that these are simply a means to the end which remains robust customer experience; simple, personalized, interactive and secure.”

Prioritizing the right change levers is key to the success of any transformation, but how the transformation journey is managed and measured also plays a big role in digital transformation. In a recent survey commissioned by EY, it was found that digital transformation leaders embrace systemic change, especially in the realms of organizational structures, cultures and human talent. These dimensions are frequently overlooked or undervalued by less mature firms and those just commencing their transformation journeys. Leaders are also notably more focused on customer needs and new business models. Lastly, they measure success more holistically and in ways that go beyond purely financial metrics (such as cost reduction). The right strategies, structures and cultures are closely correlated with the most digitally advanced companies. As a result, digital leaders enjoy a broader range of benefits (especially around customer satisfaction, profitability and greater adaptability to emerging threats), than laggards, who are more narrowly focused on cost.

EY understands this, which is why we have established 5 distinct digital offerings reflecting the holistic set of challenges that digital creates for clients across industries ‘Grow, Optimize & Protect’: Strategy- help clients rethink their business strategy and operating model for the digital age. Innovation & Incubation- establish an end-to-end innovation capability to incubate new ideas and business models, Continuous Experience Implementation analyzethe world of the customer, then design and implement new experiences,Digital Operations align, enhance and automate operations and supply chains to deliver on the promise of digital, Digital Trust scan the digital risk horizon and help clients build agility to respond to digital risks.

“If any digital initiative lacks a strong business case clearly outlining contributions to revenue or reduction of costs, it belongs in the laboratory. Launch in sizable doses and scale quickly.” – Dapo Adewole, EY Digital / IT Advisory Leader for West Africa.

 

Author by : Philip Okafor

Source by :www.businessdayonline.com/

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