PhD Graduate and result-oriented Director with 25 years experience with involvement in all levels of Business Strategy, Sales and Marketing, Managing Project and Product Development. Aside of managing a company, he is also the best corporate trainer and public speaker in seminar and conference.
Digital Innovation: What’s New?
Digital Technology has evolved radically and become the core factor in achieving business goals. More recently, digital technology expanded beyond internal dimensions, penetration firms’ products and service offerings (Yoo, Boland, Lyytinen, & Majchrzak. 2012). The technology advancement enforces enterprises and organizations to adapt and utilize digital potentials in order to support their business environment. The unique properties of digital technolgy enables new types of innovation processes that are particularly rapid and difficult to control and predict (Henfridsson, Mathiasse, & Svahn, 2014; Yoo et al., 2012; Yoo, Lyythinen, Boland, & Berente, 2010).
The use of digital technology to solve current business issues is referred to as "digital innovation." The development of a new technological strategy within an existing corporate context, the acceptance and implementation of new software or platforms, and the transition from analog to digital processes are all examples of digital innovation.Therefore, enterprises need a firm and dynamic tool to support them in utilizing digital innovation that arises.
“Digital innovation strategy can be defined as a strategy for a business to reposition itself in the digital economy.”
In order to maximize their business continuity and resiliency, enterprises should implement a digital innovation strategy. It is a type of strategic business model and process development that will alter the market and produce new value for consumers. The customer's habits and needs have changed as a result of today's innovations, and as a result, business operations and models must also evolve. Enterprises must adapt, adjust their operating and commercial strategies, and utilize cutting-edge technologies.
Stretch Beyond Technology
Digital transformation has always been identical with technology. Enterprises that refuse to incorporate technology into their business process are at risk of being outclassed by their more tech-savvy competitors. However, undergoing a digital transformation is more than just simply adopting new technology, investing in fancy gadgets, or upgrading current systems. Technology doesn’t provide value to businesses, except for technology in products. If enterprises want to remain competitive in this digital transformation era, they need to drive innovation by themselves and not only rely on the new technology.
According to 2021/2022 Digital Transformation & Cloud Survey: A Wave of Change by Baker McKenzie, a survey that measured Digital Transformation Program Maturity, Digital Transformation has evolved form an urgent effort to a permanent part of the enterprise. The respondents are representatives of digital services and cloud computing in 500 global organizations. The results shows that among 77% of its respondents are now accelerating and scalling efforts, indicating the further acceleration of Digital Transformation. The majority of respondents say Digital Transformation is a tool for improving process efficiency rather than fundamental business change.
Another survey from Broadridge Digital Transformation in 2021 shows a significant advantages of Digital Transformation for enterprises in increasing their revenue up to 1.5 more. Firms also reported return on digital investments as they advance in Digital Transformation. By integrating Digital Transformation, enterprises can now quickly detect client demands and boost overall productivity into all elements of operations, procedures, and strategy.
In order for businesses to attain digital maturity that resulting in a successful digital transformation, a balance between the adoption of technology, business models, people, and business processes should be taken into account. This is where Digital Innovation Strategy plays crucial role for enterprise. Digital Innovation Strategy is more about strategy than the technology. It determines whether enterprises will be able to accomplish their business goals or not. Enterprises should understand the importance of understanding the purpose of new technology innovation to achieve growth and goals, as well as create real value to the enterprises.
“The presence of digital innovation strategy enables enterprises generating their business and value growth.”
As customers habits and needs have changed, business should also customize their operations and processes to satisfy their customers. Enterprises that do not understand the processes and operations that are needed in this digital era cannot identify their business priorities. Additionally, enterprises also need good data and resources to form their decisions so they can take advantage of opportunities and mitigate risks. Enterprises also need the agility to execute those strategic decisions with speed and precision. Otherwise, the competition will go above and beyond you.
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