Human-technology interaction was never that smooth for many reasons linked mainly to the complexity of technology and people's resistance to change. In both cases, organizations still struggle to realize the full potential benefits of technology.
Digital transformation projects are complex compared to hardware-based projects due to their abstract nature. Take the data center image below as an example. Such a data center looks high-tech if it powers the most complex data analytics or sits ideal. Are you aware of IT administrators just keeping unused servers powered on even when servers host no applications, as turning them off is a source of trouble? No one will know.
Top 5 Digital Transformation Challenges
During the last decade, technology has been transformed and somehow simplified. Thanks to some technology innovators who transformed the technology industry from the hands of legacy players and made it affordable. Open Source, cloud computing, mobile apps, IoT, blockchain, and others are perfect examples of new technology models.
Such a new stack of technologies made it affordable for any organization to innovate sometimes better than the more prominent and influential organizations. For an organization to realize extended levels of benefits from technology, they have to go through a transformation process that may affect a large number of the organization's 22 elements (see business transformation page). However, achieving such extended levels of benefits is very difficult and is an underutilized opportunity. According to a recent Harvard study, 75% of digital transformation projects do not succeed.
Digital Transformation, the underutilized opportunity
Many organizations are still stuck in their legacy world. The absence of a proper digital transformation maturity framework made it a trend for some powerful organizations to associate their brands with technology and innovations as being leaders in digital transformations. Moreover, many consulting companies contribute to the fragmentation happening by producing content on digital transformation without getting into the actual success drivers of digital transformation. It is not a surprise that Harvard's recent study shows that 75% of digital transformation initiatives do not succeed.
Depending on the business, the general rule is that real success in digital transformation brings a substantial change including significant growth opportunities, new product offerings, faster customer response, and 24/7 availability of service. Some companies may believe that they have achieved that today but unfortunately that is not accurate. The business model and interaction should be completely automated and has some level of artificial intelligence that updates processes automatically. So, what are the real obstacles lifting companies? the top 5 are:
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Organization's senior management. Allocating budgets is not enough unless those executives live the technology values and are able to develop transformative digital strategies.
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Technology transformation professionals: It is scarce to find professionals capable of introducing technology to transform the core elements of an organization.
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Organization culture: We see many business executives either do not believe in technology or have a perception that their company is unique and nothing can work for them or are not willing to pay on technology because technology is cost and hype.
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Business alignment: Organizational alignment is crucial for successfully automating its business processes. Many organizations seeking batter alignment do that through batter technology-business alignment.
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Win-lose relationship: As an organization may benefit from proper technology adoption, some employees may find that a threat.
Five-level maturity model of Digital Transformation
The answer is simple but its simplicity is deceptive and hard to achieve. It is about knowing technology so well, knowing how to transform business using technology, and being willing to change. Digital transformation starts by understanding where and how technology can be a part of an organization. Those are 5 digital transformation maturity levels:
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Level 1: A company has a secure and reliable infrastructure: Infrastructure services cover: connectivity, storage, VOIP, Video Conferencing, access control, virtualized platform for provisioning, and de-provisioning of services.
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Level 2: Productivity and middleware: The essential productivity services such as Email, office collaboration knowledge management, and middleware integration capabilities.
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level 3: Operations automation: This is the majority part which includes all core systems such as the financial system, line of business applications, CRM and marketing automation, Internet presence, mobile app, administration systems, and others.
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Level 4: The virtual company: level is achieved is when the organization offered its services virtually and transact and supports customers just seamlessly. Level 4 is not an e-commerce website or a company receiving orders or applications online. It is when customers can seamlessly interact with an organization with all or majority of interactions.
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Level 5: The pinnacle in customer and partner experience: The entire organization runs based on artificial intelligence to personalize all relevant responses and with instant speed. Customer and partner interactions are extremely flexible and their flexibility is intelligently built as per the customer's needs.
Top five digital Transformation myths
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Technology is expensive and is a hype
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Technology is too complex and difficult
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We spend a lot on technology; therefore, we are advanced and well automated.
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We have many awards and certifications; this means we are great.
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We are the best, even in technology :)
If the above makes any sense to you or your business, feel free to talk to us. We will guide you on how to join the real digital world.
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