Digital Transformation Part (1)

1.        Introduction:

With the advent of new digital technologies such as social networks, mobile, big data, etc., departments in all industrial fields are carrying out multiple initiatives to explore and exploit their benefits.

This involves transformations of key business operations and impact on products and processes, as well as organizational structures, as companies need to establish management practices to govern these complex transformations.

The society as a whole is facing a fast and radical change due to the maturation of digital technologies and their penetration of all markets.

Add to the increased demand from customers, companies are facing ever tougher competition due to globalization and putting pressure to go digital before others do, seeking to survive and attain competitive advantages.

In recent years (Amazon, Facebook and Google) have grown into powerful behemoths, while companies that command their industries found their traditional value proposition under threat.

However, despite the multiplicity of technological novelties and recipes for their implementation, whether in business, public governance and private life, Digital Transformation is taking much longer and facing more difficulties than it expected.

It is beyond the traditional roles such as sales, marketing and customer service. Instead, digital transformation begins and ends with how you and your customers think. While moving from paper to spreadsheets to smart applications to manage our business, we have the opportunity to re-imagine how we our – how to engage our customers – with digital technology from our side.

2.        Background and Basic Understanding:

In recent years, firms in almost all industries have conducted a number of initiatives to explore new digital technologies and to exploit their benefits.

An important approach is to formulate a digital transformation strategy that serves as a central concept to integrate the entire coordination, prioritization, and implementation of digital transformations within a firm.

We define digital transformation strategies and differentiate them from related concepts, describe their main elements as parts of a general framework, and show opportunities for moreover research in this field.

The exploitation and integration of digital technologies often affect large parts of companies and even go beyond their borders, by impacting products, business processes, sales channels, and supply chains.

Potential benefits of digitization doubled and included increases in sales or productivity, innovations in value creation, as well as novel forms of interactions with customers, among others. As a result, entire business models can reshaped or replaced.

Owing to this wide scope and the far-reaching consequences, a digital transformation strategy seeks to coordinate and prioritize the many independent threads of digital transformation.

Owing to their company-spanning characteristics, they cut across other business strategies and should aligned with them (Figure 1).

While there are various concepts of IT strategies, these mostly define the current and the future operational activities, the necessary application systems and infrastructures, and the adequate organizational and financial framework for providing IT to fulfill business operations within a company.

IT strategies usually focus on the management of IT within a firm, with only a narrow impact on driving innovations in business development.

To some degree, this constricts the product-centric and customer-centric opportunities that arise from new digital technologies, which often cross firms’ borders.

Further, IT strategies present system centric road maps on the future uses of technologies in a firm, but they do not necessarily account for the transformation of products, processes, and structural aspects that go along with the integration of technologies.

Digital transformation strategies take on a different perspective and pursue different goals. Coming from a business-centric perspective, they focus on the transformation of products, processes, and organizational aspects owing to new technologies.

Their scope designed and included digital activities at the interface with or fully on the side of customers, such as digital technologies as part of end-user products.

This is describe a clear different Corporate strategy Operational strategy (Products, markets, processes) Functional strategy (Finance, Human Resources, IT …) Digital transformation strategy.

Ference to process automation and optimization, since digital transformation strategies go beyond the process model, and include changes and implications for products, services, and business models as a whole.

Similar to the previous discussion on the alignment between business strategies and IT strategies, it is critical to get a close fit between digital transformation strategies, IT strategies, and all other organizational and functional strategies.

While digital business strategies often describe desired future business opportunities and strategies for firms that are partly or fully based on digital technologies, they do typically not include transformation insights on how to reach these future states. In contrast, a digital transformation strategy is a blueprint that supports companies in governing the transformations that arise owing to the integration of digital technologies, as well in their operations after a transformation.

Despite first research efforts and the frequent challenges encountered in practice, academia still lacks specific guidelines for firms on how to formulate, implement, and evaluate digital transformation strategies.

References: https://www.researchgate.net/publication/281965523_Digital_Transformation_Strategies

3 Comments

  • Avatar

    Riva Collins

    December 25, 2018 - 3:33 pm

    It’s no secret that the digital industry is booming. From exciting startups to need ghor global and brands, companies are reaching out.

  • Avatar

    Obila Doe

    December 25, 2018 - 3:42 pm

    It’s no secret that the digital industry is booming. From exciting startups to need ghorglobal and brands, companies are reaching out.

    • Avatar

      Arnold Rio

      December 25, 2018 - 3:44 pm

      It’s no secret that the digital industry is booming. From exciting startups to need ghorglobal and brands, companies are reaching out.

Leave A Reply

Similar Blog Posts

How to Become Data Scientist

The third Monday of January is supposed to be the most depressing day of the…

Digital Transformation Part (2)

The third Monday of January is supposed to be the most depressing day of the…

Digital Transformation Part (3)

The third Monday of January is supposed to be the most depressing day of the…