Insight

Digitally Transform or Perish: The Future of Economy is Digital and Inevitably Your Business Must Adapt

The impact of emerging technologies has finally grown to the point where it actively alters and reshapes the future of economy. Businesses now have accepted the fact that changes in today’s digital market seriously damage their business model. As a result, there is increasing pressure to take action against them, and digital transformation is required. If not, your business will perish.

Digital Transformation plays pivotal role in driving economy to further direction and become the essential role in improving greater business agility. Hence, it pushes away from traditional thinking and toward a more collaborative and experimental approach.

“According to PwC Digital Factory Transformation Survey 2022, 64% of companies are still at the beginning of their digital transformation and only high-invest to high-returns, a solid foundation drives scalable digitization.”

The digital transformation path in every organization is different; it is understandable since there is no ‘one size fits all’ strategy for transformation. Therefore, organizations need to experiment certain framework and technologies to see which suitable with the business objectives.

Before fully adjusting to digital transformation, it is essential for business to understand these 5 key points.

5 Key Points to Understand Before Undergoing Digital Transformation

1. Solve Organization’s Business Strategy

Understand the core values of business strategy. A business strategy's primary goal is to assist organizations in maximizing profits and identifying ways to map progress. Organizations can then make the required adjustments for future profitability.

2. Improve Internal Resources

Optimize internal resources’ potentials. Enhancing an organization's internal resources, capacities, and operations will help it identify its core competencies and determine how it is achieving its competitive advantage(s) in the market, which will benefit both the organization before undergoing digital transformation.

3. Design Overall Customer Experience

Acknowledge customer needs internally and externally. Customer expectations and needs are changing due to the digital customer experience offered by emerging technologies. As a result, innovation and enhancement of the customer experience are crucial components that pave the way for the development and success of a company. A digital transformation of the customer experience, according to McKinsey, can boost a company's revenue by 20 to 50%.

4. Break Through Employees’ Skepticism

Convince employees to adapt to digital transformation instead of fearing it. Employees may consciously or unconsciously resist the changes if they feel that the digital revolution could endanger their careers. Leaders must acknowledge these concerns and stress that the digital transformation process offers employees the chance to improve their skills to meet the needs of the future marketplace.

5. Create an Agile Decision-Making Culture

Adapt efficient and adjusted workflow for faster outcomes. Many businesses who are starting digital transformation initiatives discover that agility is essential to the process' success. According to a recent study, the way leaders inside organizations react to difficult situations and ongoing change is what leads to successful digital transformation. Agile digital transformation is based on research showing that successful digital transformations result from continuous innovation, which involves drastically altering business models and capabilities over time, in small steps, and as resources permit.

When envisioning the future, organizations need to fully understand the current state of their business before deciding which frameworks or digital tools used to optimize their performance. At the end, digital transformation is more about how the organization manages the technology than the other way around.