Digital Transformation: reality vs myths
Updated: May 25, 2020
Digital transformation is more than a buzzword, it's a matter of survival.
This time of uncertainty that we are living, due to the Covid-19 pandemic, imposed on organisations a focus on the digital area. Today, it is essential to have a digital strategy that keeps organisations close to customers, suppliers and employees, and reduce costs, forecast sales, agile and optimize processes so can remain profitable and efficient.
Today, errors and decisions based on intuitions are not allowed. Organisations need reliable information to make conscious, quicker and efficient decisions.
International Data Corporation (IDC), before this pandemic, already predicted that by 2024 more than 50% of all IT investment would be in innovation and digital transformation, and in some solutions such as Data Analytics, Machine Learning, Artificial Intelligence and Big Data.
Digital and data can transform the way organisations operate, but it's not just about collecting more information, storing data, analyzing and generating insights based on the past. Becoming a digital data-driven organisation requires a change in a company's cultural and also the development of skills to discover new types of value in the data.
The advantage of digital transformation in organisations is clear, just look at businesses like Netflix, Airbnb, Amazon, Spotify, Uber, Facebook, among many others.
The problem is that many are still unable to start a transformation program because they are tied to some myths.
1. Digital transformation is only for IT companies with a digital context, such as e-commerce, SaaS and other “digital native” businesses. Not true! Any company, no matter what area, can benefit from developing a digital culture. For example, the agriculture sector it used to be an industry practically free of technological processes and today it encompasses technologies ranging from automation in the field for production to data exchange between implements and the operation centres. It is one of the sectors that makes the best use of technology to predict possible difficulties, optimize processes and, because of that, obtain better results.
2. It all comes down to the customer experience
It is true that is very important to create the best possible customer experience, but it is not enough. It can create value in a circular economy, enhancing system products, with innovative features and behaviours, new business models and new experiences for users.
3. IT sector will carry out the transformation The IT sector is just one of those involved in the digital transformation of any company. Digital transformation is a complex concept, which needs to start from the top and spread across all strategic decisions and company processes.
4. Is enough to just develop several digital initiatives
This is perhaps the biggest mistake from executives and decision-makers in companies. It’s great to develop strategies like content marketing, but those strategies are only part of the solution. Digital transformation is not just about technology, but about strategy.
Accepting that investment in digital transformation is essential for the survival of the business, will put organisations ahead of the competition and allow them to have competitive advantages, especially in an economic scenario marked by uncertainty. An organisation that does not adapt to this new digital model will be left behind.
by Tânia Espinheira
Design & Marketing Manager @Passio Consulting