During an interview with Box CEO Aaro Levie, Executive Chairman of Cisco Systems, John Chambers said that 40% of all Fortune 500 businesses today will die in 10 years if they don’t figure out how to change their entire company to accommodate new technologies.
Strong words indeed! I agree with him and go one step further, all businesses, be it small, medium, large or Fortune 500, all are under potential risk of vanishing in next 5 years if they are not serious about adopting digital transformation in their businesses.
What is digital transformation and why it’s needed?
You have been running your business for years, why then you have to change the way you do business?
What will happen if you don’t adopt digital transformation in your business?
And perhaps, most important of all, what is digital transformation?
Let me answer these questions in detail.
Going digital doesn’t mean an addition of new websites, e-commerce stores, mobile apps or getting more likes or retweets for your social posts.
The word digital is a synonym for the piece of change that is occurring in today’s world driven by the rapid adoption of technology.
This is putting tremendous pressure on the existing businesses. Because of rapid technology adoption, how our customers engage with you in changing how we create a new sustainable competitive advantage.
There are two types of organizations who adopt digital transformation. The first one, those who are just doing digital, and second, those who are digital innovators!
And these digital innovators are disrupting every conceivable marketplace enabled by these new technology adoptions.
Examples of digital innovators are Amazon, Uber, Airbnb etc.
The mistake we are seeing is that many organizations are simply digitizing existing services and calling it as digital transformation. But it is not, unfortunately.
Digital transformation is a journey of strategic, planned organizational change and develops new products around digital technologies ecosystem.
It starts by empowering your teams with new methods to create a highly responsive strategy and fearless culture of innovation.
It is the right leadership that creates the high performing innovative organizations which is delivered by marketers and technologists.
It is the combination of changing your business strategy, operations models, culture, customer engagement, innovation, technology, and data analytics.
Digital Transformation: Digital can reshape and transform every aspect of your business
Customers are looking for faster results and are taken care of. If they are not getting fast and desired results, they will simply move on to your competitor who is giving a much better and faster result through digital technologies across customer journey from educating your customer to engage them and finally selling your product/services to your end customers. If you don’t implement the right strategies then you will lose a customer forever.
If you don’t change how you do business to adapt to this digital age, the new startup’s who are digital innovators will soon overtake you no matter how prestigious your organization is and the legacy you boast about.
How do you implement digital transformation in your business?
#1: Reinvent your business model
Create a “digital agenda” for your company and evaluate how technology can be used to improve how you do your business to stay ahead of competitors.If required, don’t be afraid to change your organizational structure, process, and even leadership to get the desired results.
#2: Adapt to change, Fast and Efficient
If you look around, every business is transforming themselves to adapt to new technology and changes are coming every day. There is absolutely no respite. If you don’t act quickly and efficiently, soon you will be squashed by new startups and competitors.
#3: Strategic Partnerships
Since you can’t be an expert in every field or technology, it will be a wise idea to establish a strategic partnership with companies having domain expertise is a field which is a key value add in your business process.
#4: Adopt Digitization
Since every business is going to be significantly transformed by digital technology, find ways to implement mobile, cloud, IoT, Artificial Intelligence and data analytics in your business or you will face the risk of extinction in next 5 years.
#5: People and Training
To learn and adopt new skills require training. It is a wise idea to train your existing staff to adopt and learn new skills and there are low-cost ways to give training, like providing them with the material, videos in YouTube, attending webinars /seminars etc.
We are going through a Digital Revolution and those who do not adopt to change and hide their head in the sand and do little or nothing will perish over time. New startups and smart competitors who focus on the new ways of doing business will squash you over time, no matter how big a company you are and how many years of legacy you can boast of.
Please share your feedback via comments below, Have you taken any initiative to transform your business digitally? Please get in touch with our business growth team here.