Digital Transformation: Areas of Concern
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Digital Transformation: Areas of Concern

Digital Transformation: Areas of Concern

Article

An IDC definition goes: “Digital Transformation is the approach by which enterprises drive changes in their business models and ecosystems by leveraging digital competencies.”

Notably, digital technologies are commonly associated with the purpose of achieving three goals – optimise internal operations, improve interaction within the organisation’s ecosystems, and create products, and services that customers want and expect.

The Needs of Digital Transformation

However, the value of having digital transformation that leverages digital technologies, goes beyond these three goals. It can also be used to address, and strengthen five areas that are being digitally disrupted and for which, some change is necessary for the organisations to successfully adopt the right digital approach.

Organizational Wide Transformation

From the research house’s point of view, digital transformation is multi-faceted, concerning five different types of transformation, for the whole initiative to be truly organisation-wide, pervasive and holistic.

Namely, these five areas are Leadership, the customers’ Omni-Experience, Information, Operating Model and Worksource.

Unlike the computerisation era where everything was much simpler, the complexity of managing changes in this digital era has increased exponentially.

Added with the fact that we have continuously, and blindly performed changes within our organisations using the same traditional approaches, IT environments have become more chaotic, resulting in ever-increasing costs, reduction in organisational responsiveness and speed to response, as well as decreasing flexibility and adaptability to disruptions.

Instead of ICT being a “saviour” when it was first introduced back in the computerisation era, it is commonly associated with being a “cost centre” nowadays. This is the painful reality in most organisations today.

Traditional solutions/approaches are no longer effective, and it needs to change, if IT is to become relevant again, and enable the business to achieve its larger goals, and ultimately, transform into a profit centre.

Without leadership transformation through Digital EA, it will be difficult to foster enterprise-wide digital culture, a very key component to have for the organisation to successfully navigate through the entire digital transformation journey.

Consumption habits are also evolving rapidly, enabled by new digital technologies and demand for simplicity, convenience, and instant gratification, resulting in all the points of interaction with customers have to evolve along with customer needs.

To be able to extract insights and that can provide value and utility, data across all new and existing sources must be integrated and made consistent. After applying big data and analytics technologies upon all these information related to customers, markets transactions, services, products, physical assets and business experiences, not only can new revenue streams be generated, but decision-making becomes informed and more impactful.

As everything starts to come together, the next thing to work on is making business operations more responsive and effective, by leveraging digitally connected products/services, assets, people and trading partners.

Workforce Competencies Become the Major Factor

People, are any organisation’s most valuable resource. Worksource transformation requires taking into account, IT talent and skills management, as well as continuous competency development programme for them to achieve, and sustain the desired competency level required to perform their roles effectively in today’s digital workplace.

Hence, professionals need to acquire the relevant skillsets as defined by Iasa in its ITABoK skillsets library. This body of knowledge is also supported with professional certifications of CITA-F, CITA-A, CITA-S and CITA-P.

An organisation has the potential to achieve its business goals, within the required time, using the allocated required resources, by performing changes based on the organisation’s actual needs, instead of blind assumptions.

These 5 areas of digital transformation, can help ensure that this happens for the organisation.

Click here to explore more on how the five areas will impact your digital transformation journey.

By Aaron Tan Dani, Chief Architect, ATD Solution

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