The implementation of digital transformation is no longer a trend – it’s a reality. In 2019, vast amounts of organizations have allocated a wide majority of their resources to digital transformation. A Deloitte report released this past March has shown an undeniable pattern: companies have increased their annual budgets for digital transformation strategies by as much as 25%. Deloitte performed an extensive survey of over 1,200 US executives in effort to distinguish their views on the digital transformation movement.
The report put a lot of focus on why so many companies have decided to dedicate themselves to the digital transformation. One key aspect they highlighted was that most organizations see this as a way to increase their revenue. According to the pivots in the report, 50% of digitally mature companies were said to be above average in their net profit margins within the respected industries. Thus, the connection to the digital transformation is undeniable. It goes on to emphasize the tangible areas that help provide the organizations with measurable data from transformations, such as better customer service, reduced time to launch new products and lower costs.
One of the final pieces the report touches on is the seven fundamentals required for an organization to successfully move forward in today’s digital age. The focus is primarily on how all types of industries are going to distinctly benefit from digital transformations. These elements include:
- Flexible and secure infrastructure: All types of organizations are using public cloud infrastructures to help them further their digital transformations and tap cloud-based artificial intelligence technology platforms.
- Mastery of data: Data is immensely powerful and, when analyzed correctly, helps companies find new efficiencies and opportunities within their systems. Industries such as e-commerce, investment banking and automation benefit the most from capable data use.
- Digitally savvy, open talent networks: This includes incentives and crowdsourcing in order to find new talent in the workplace.
- Ecosystem engagement: Companies are routinely joining one another to further their capabilities within their respected fields. An example being an automotive company teaming up with a technology company in order to offer more capabilities in their products.
- Intelligent workflows: Most labor-intensive industries have a high demand for robotic process automation (RPA). This is the push for automation to streamline workflows across all industries.
- Unified customer experience: Using technologies to enhance in-store experiences such as using augmented reality to help customers get the most out of their trip.
- Business model adaptability: Companies are merging/buying up existing companies to create new revenue chains.
We do understand that some industries are organically more digitally mature than others. Some organizations have an intrinsically more positive response towards potential technological disruptions. According to the Deloitte study, technology, media and telecommunications (TMT) was much more likely to digitally transform when compared to government and healthcare services.
Regardless of the industry you’re in, FlexManage is here to help you define your path to digital transformation. If you have questions or concerns about your organization’s digital planning, we would be happy to consult with you. Let’s talk.