As a start, let me clarify that Digital Transformation (DX) is like every cliché in information Technology (IT) industry, you think it’s a new innovation that will change the world, then you realize it is just a renaming or bundle for few well-known solutions and it is just a re-branding to boost sales.
Let me proof it.
First let’s see what does “Digital Transformation” mean. By definition, it is the change associated with the application of digital technology in all aspects of human society. The transformation stage means that digital usages inherently enable new types of innovation and creativity in a particular domain, rather than simply enhance and support traditional methods.
To simplify it, if you are a business owner or stakeholder, you have to find a better way to deliver the value to your customers using technology. This technology will have an interface in form of application, data platform for robust processing and analytics, and infrastructure for hosting and storage, etc.
Depends on the service providers, vendor or partner, coming to your meeting room presenting Data Transformation, you will hear the same story but from different angle based on the company portfolio of products and services. Believe it or not, you will find the same output -more or less- because they are talking about your business and value to your customers.
What does this mean?
Digital Transformation shall be originated from inside the organization itself and empowered by stakeholders, for two reasons:
– Business’ stakeholders -supposedly- know more about the daily challenges and market behavior
– Every service provider will come with experience of other, hopefully in the same industry, but not exactly the same, because every business is somehow different in market, value and then solution.
Are vendors, service providers bad?
Definitely not, and I will never say nor mean it. However, Digital Transformation is not new, it is more of complete vision to add value to your customers applying set of technological solutions, and it shall be originated from inside the organization so you better decide which vendor best offer you value to investment, and here come the two famous terminologies, Total cost of Ownership (TCO) and Return on Investment (ROI).
The other sides of the story
In fact, it is all about the organization itself.
Capgemini and MIT Center for Digital Business in a three-year study defined an effective digital transformation program as shown in Figure 1 below:
Capgemini Consulting Digital Transformation
The take-away from this study is that in a digital business transformation context, all these aspects: business functions, processes, activities, assets, models, and activities are interconnected. This is an essential aspect of digital transformation: the inter dependency and inter-contentedness of everything. From business processes and models to business activities and each single activity of the organization.
– Business as usual: A common case of not seeing a problem, hearing sentence like: everything is going fine.
– Another side, is when sales numbers became not so good but the reason is not well defined.
For the above situations, organization will have to look for business consultation first and hence the real need for the Data Transformation appears and the investment will be justified and accepted.
– Data Transformation is not new, just rebranding – combo offering – for a set of technological solutions covers three layers: Application, Data Platform, and Infrastructure
– Data Transformation shall be noticed from inside the organization, because people inside are the best to know the business and challenges
– Business Consultancy is well recommended from time to time to understand the new trends and the new trends in the market.
Most world class real-world digital transformation success stories can be found here.
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