For the digital transformation, the strategic planning must come from the business leads, IT Team talent and skill should be used to execute the plan.
By Ravi Krishnamoorthi
CEOs play a key role in maintaining the thin line between digital transformation and digital devastation. The CEO must wake up to the business-enabling potential of digital, and know that this sits with them. According to a study conducted by Fujitsu, less than 20% said that the CEO is driving the digital agenda in their organisation. For most part, digital transformation sits within the IT team. This is a cultural change that must happen if digital is going to reach its potential. While the IT team may well be the right place for the skills needed to execute, the strategic planning must come from the business leads.
The core problem lies in the fact everyone in business is talking about “digital transformation”, but not in the right sense. Most decision makers think that immediate investment will reap instant reward. They rarely approach digital as a business initiative; therefore it remains in the IT department. This is bizarre given the potential rewards are not linked to IT – we are talking about improving service to customers, evolving business processes and identifying new revenue streams. If any investment was deserving of CEO eyes, it’s this particular one.
A great number of digital projects have been executed in organisations across the world. It can, as many governments have alluded to, be an economic game-changer – helping businesses improve service delivery, advance manufacturing, streamline business processes and make more money for the world economy. But for this to be realised, we must first fully acknowledge that digital transformation is not a technology switch, it is a business evolution and for organisations to avoid digital devastation, it must be treated as such.
While rapidly moving towards digital transformation, the disparity in development between certain sectors remain unseen. Certain sectors or regions are more digitally advanced than others, and upon closer inspection some common themes emerge, such as a lack of confidence in ensuring successful digital transformation. Digital transformation is desired by all yet only a handful of businesses have a strong digital plan in place. There is mounting pressure on organisations to move with time and technology, and the only way to grow faster is by going digital which involves taking huge risks. This is where an unstructured approach eventually leads to digital devastation instead of bestowing profits from the digital transformation.
Digital technology is understandably still new for businesses, but it has been proven to be truly transformational. For instance, Gatwick Airport, with its cloud-based unified communication solution that connects front line staff in terminals and the airfield with the back office decision makers via voice, video and data, effortlessly proves this statement true. Yet another great example is of Airbus, whose uses RFID technology to reduce inventory, allows real time control of their production line and enables easier servicing of aircraft.
Also, it is highly recommended that before businesses begin investing in digital projects, it is imperative that the separate, misaligned approach to digital should be eliminated as it will only result in two things – wasted investment and back-office integration problems now and in future.
It is absolutely fundamental that all corners of the business communicate and work together to develop the right strategy for the entire organisation. This may well have sidebars where certain departments add additional layers or projects they specifically need but there should always be a central digitalisation plan that spans the entire business, and will therefore wholly benefit from it.
It is important to take digital transformation seriously, in order to make a significant impact. However, organisations are still treating digital transformation like a new, exciting technology that sits on the periphery of the business.
This leads me to the next point wherein even if businesses take digital seriously, they often tend to rush into digital projects without a clear, strategic plan. Sadly, such a hurried approach never ends well. When we talk about digital transformation, we are essentially talking about changing parts, processes and inner workings of a business, some of which won’t have seen a change for decades. In short, you are building a new foundation for the organisation – one that will future-proof it for the connected age. But like the foundations of a skyscraper, you first need a blueprint.
The author is Senior Vice President & Head of Business Application Services, EMEIA, Fujitsu.