Top five misconceptions that enterprises have about Digital Transformation
It is not news that businesses need to undertake digital transformation if they are to keep up with the times, competition and the demands of the market. Digitization has therefore gone from being trend to becoming a core competency. That being said, despite the many years that digitization has been spoken of as a necessity, many organizations are yet to make the complete move. A survey by Computerworld – Tech Forecast 2017 brought out that only 11% of organizations had achieved 100% digitization, with 40% feeling they had half way to go and 49% saying that they are less than the half way mark.
What perhaps causes this lagging behind is the lack of a forward looking road map to digitization. Errors in judgment are often caused by what seems to be the right mode of action for a specific time and requirement. These judgments often do not have the foresight and can ruin a project. But, thankfully there are quite a few organizations that have cracked the code of smart digitization of an organization and based on their road maps, here are 5 myths dispelled that will help you make smarter decisions for your organization.
Myth 1 – We Will Make it In Time
The misconceptions here work on multiple levels – some companies feel that digitization is not really for them, but for technology and B2C companies. Fact is, digital transformation for any kind of an organization is about improving efficiency and performance; both for large and small companies, across industries.
Now with this understanding, let’s dispel another notion – that you have enough of time to implement the change. A common mistake is to misjudge the speed of change that you are facing. While test, learn and evolve is the way to go for any sort of disruptive change, you cannot afford to go easy on the risk-taking. Going digital is disruptive and the transformation process has to be equally so. Bottom line is – don’t hesitate to take the plunge when needed.
Myth 2 – It’s All About IT
Yes, it is digitization of a business but that does not automatically make it an IT function. Making the transformation cuts across boundaries and is as much about leadership functions as it is about the technology involved. You will require a new mind set to work with digitization. Leadership will involve creating the right organizational structure to support the requirements of digitization for your particular business. Boxing these digital changes as being merely software changes will not allow your business to maximize its potential with the transformation. Digital transformation is about an organization-wide change and will require engagement on multiple levels. It definitely is not a single department job, and cuts across hierarchy.
Myth 3 – Digital Transformation Means I will Become an Online Company
The term digital can have several misconceived connotations, one of them being that a transformation is equal to your company becoming an online one. This can happen, but is not necessarily true across the board. Making use of technology is not only about leveraging it for efficiency but also to open up new business opportunities. The fundamentals of your business will always remain the same.
Myth 4 – It will result in downsizing your workforce
Digital transformation involves the use of artificial intelligence as well as transferring of tasks to machines. This often leads to the misconception that there will be a reduction in manpower required and hence downsizing. Companies often tend to hold back on digitization for this very reason. But the fact is that people will always be required – to drive the efficiency of digitization, human efforts are always going to be needed. Yes, there may be a change in work profile definitions, but that is where adaptability and a change in mind set that we spoke about earlier comes in. Digitization is also about spotting inefficiencies and making a change. Humans will always be required to do this.
Myth 5 – Digital Transformation Means Instant Uptick in Business
So here’s the thing – digital transformation is all about improving efficiencies, which in turn enhance productivity and of course, that will make your customers happy. This, however is not a guaranteed outcome. Your business wing and your IT department are two different pillars of an organization and both have varied starting points and goals. In order to make them work together, your road map to digitization has to be inclusive and your goals charted out right from the get go. Only with such synchronized working will you be able to make the most of the digital transformation of your company.
Digital transformation is applicable to all kinds of companies without an exception. In most cases, it is not about your business falling behind as it is about struggling to keep up with the speed of transformation required. Keeping these five misconceptions in mind when working out your strategy will help in paving the way to the right form of digital transformation. It will enable your organization to keep up with newer technologies that will advance, combine and create new ways of doing business.
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