A Holistic View of Digital Transformation
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A Holistic View of Digital Transformation

Khalid Walid Akawi, Global WAM Director Technology Risk and Controls, Manulife
Khalid Walid Akawi, Global WAM Director Technology Risk and Controls, Manulife

Khalid Walid Akawi, Global WAM Director Technology Risk and Controls, Manulife

Introduction

A recent study conducted by Deloitte found that 70% of transformation efforts fail, and that organizations take around three years to develop a competitive edge in the digital market even when they get it right.

The Digital Transformation has gained a huge traction in recent years, but it can be quite confusing. An organization's Digital Transformation involves reconsidering its business models and revenue streams in response to changing customer expectations through people, technology, and processes. In addition, the term is commonly used to describe the process of automating the process of delivering services and the move away from human interaction to an automated or self service procedure. A focus on moving from slower and manual processes to those that are quicker, more convenient, automated and digitized and give the user a feeling of empowerment.

Why is it vital for organizations to adapt Digital Transformation?

Every organization strives to be the best at what it does in order to achieve success. It requires new strategies like Digital Transformation and practices in order to remain competitive in this new business and economic environment. Additionally, Digital Transformation strategies have many other benefits to differentiate organizations from their competitors.

It has been observed that business and technology leaders in a number of small, medium, and large organizations have found that implementing Digital Transformation programs has two types of benefits. Firstly, the importance of a positive impact on customers' experience and the products offered by an organization. This can be illustrated by how Digital Transformation enhances the collection of data and, resource management, provides data-driven insights into customer service, improves the customer experience, and increases profits by enhancing the customer's satisfaction with the products or services provided. Secondly, Digital Transformation will provide huge benefits to the organization's internal operations by promoting a digital culture, optimizing operations costs, increasing agility, improving operational transparency, and enhancing productivity of the internal business processes.

How COVID-19 Accelerated Digital Transformation?

Satya Nadella, CEO of Microsoft, mentioned this during one of his keynotes – “We’ve seen two years’ worth of Digital Transformation in two months”. While Amit Zavery, VP and Head of Platform, Google Cloud said “Think of Digital Transformation less as a technology project to be finished than as a state of perpetual agility, always ready to evolve for whatever customers want next, and you’ll be pointed down the right path.”

  ‚ÄčA recent study conducted by Deloitte found that 70% of transformation efforts fail, and that organizations take around three years to develop a competitive edge in the digital market even when they get it right. 

As a result of the COVID-19 crisis, organizations in all industries and regions have had to change the way they operate for years to come. McKinsey recently conducted a survey of executives concerning the digitization of their organizations' customer-supplier chain interactions, and the digitalization of their internal operations, which found that their organizations have accelerated this process by three to four years. Their portfolios have increased by seven years in terms of the share of digitally enabled products they offer. Almost all respondents say their organizations have quickly responded to new demands by creating at least temporary solutions, and they have done this more quickly than they expected before the crisis. More to the point, respondents are anticipating that most of these changes will remain in place for a long time, and they are already making investments that will virtually ensure that they will remain in place for a long time to come. Interestingly, when executives have been asked about the impact of the crisis on a wide range of measures, they say that the funding for digital initiatives has increased more than anything else, as well as the number of people in technology roles, and the number of customers.

Challenges facing Digital Transformation programs

When it comes to investing in the best and most sophisticated technologies, it will mean nothing unless the organization acquires the necessary skill set and knowledge of how the technology works, and will help the organization's clients feel better at the end of the day. In organizations that are working towards Digital Transformation , there are several challenges that are commonly shared by many professionals, but these are not limited to the following: complexity, lack of change leadership, inadequate planning and clear goals, and insufficient experience in executing successful transformations.

Another challenge of the transformation equation will be the technology framework and programs that will be implemented by the organization. Many organizations have been unable to take full advantage of the cloud due to regulatory restrictions or concerns over cloud security and privacy.

The key to successful Digital Transformation

To bridge the gap between people and technology, organizations need to understand employees, customers, regulations and the community's pain points. Therefore, organizations have to find new ways to identify problems in their Digital Transformation framework and to identify and fix these problems or pain points in the best way possible.

Identifying whether Digital Transformation initiatives are heading in the right direction is crucial for the success of the initiative. Using metrics in a judicious manner is the best way to gauge whether or not transformation efforts have been successful. This includes measuring how quickly new products can be brought to market effectively without sacrificing quality. Measurement of Artificial Intelligence (AI) or automation in general. Productivity and efficiency ratings of staff. Measure the ability to accomplish more with less staff. The measurement of improving the risk posture of the organization through the reduction of technology sprawl. It is necessary to measure progress in identifying risks and clarifying regulations related to cloud adoption and data initiatives. Finally, automating processes rate, reducing product defect rates, reducing rework costs rate, and enhancing customer loyalty rate.

Looking at Digital Transformation 's future

As a result of true Digital Transformation , businesses must understand that all aspects of their operations will be transformed, from operational efficiency to customer and partner engagement to communication and collaboration. This goal requires both short-term and long-term plans.

Since there is no one-size-fits-all solution to Digital Transformation, every organization requires its own approach. It is crucial that the future Digital Transformation strategy be tailored to each organization's industry, market position, competitive pressure, and customer needs. Business innovation can be driven by technology when Digital Transformation roadmaps are designed and implemented correctly. Long-term transformation can be achieved by communicating across departments and collaborating cross-functionally.

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