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Digital Transformation: Key Success Factors

Regina Jacobsen, September 1, 2021

Not only is digital transformation important for short-term market share and growth, but it also helps to ensure long-term viability and relevance. Digital platforms and ecosystems are able to drive efficiency and create new value for customers and businesses through unexpected collaborations. There are four types of digital maturity: digital beginners, digital fashionistas, digital masters and digital leaders with digital and leadership capabilities driving business transformation.

The digital age has changed the way we think about process and operations. Digital capabilities of smart devices are seamlessly bringing direct benefits to the industries in terms of productivity, efficiency and innovation.

The top priorities of millennial CEOs are innovation, speed-to-market, trust, and human capital. This leads to initiatives around data driven and digital business. CIOs are responsible for managing both innovation and operations. It is one thing to improve transformation, efficiency, security and cost-effectiveness, but it’s also to reduce costs & time to create new services, maintain, simplify IT models & infrastructure, and improve business processes.Transforming Business Digitally

It is the business results that determine the success or failure of a digital transformation programme. These could include customer experience transformation and enterprise user efficiency. Any transformation program must succeed in three key areas: people, process, and technology.

It is crucial that digital transformations are applied holistically and not as a series of steps. A digitally-driven customer acquisition front with a manual or semi-manual back office process will not lead to the desired business results. A complete digital transformation program will lead to innovation, efficiency, trust, and ultimately success.

A key success factor in a digital transformation is change management. The fate of any digital transformation is determined by the people / resources directly and indirectly involved. Be concerned about perceived loss of control in a manual or semi-automated process, resistance to change, adaptation of any innovation should all be addressed by a structured management process that includes clear communication, direction from management, and a collaborative environment to address cultural issues within the organisation.

The success of a digital transformation that is adaptable and successful relies on technology. It is not the technical knowledge or features of software or hardware that matters. Instead, it is ease of implementation, design thinking and smooth transition. This results in a digital transformation that is acceptable and well-received by both internal and external audiences.

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