Digital Transformation takes place when you combine business with modern digital technology to gain competitive edge, to increase productivity and profitability. According to studies CEOs believe that technology will transform their business more than any other global trend.*
It’s important to understand that this is not something for tomorrow. Capgemini has stated, that “Every industry we’ve studied, already has digital masters”.* Companies around the globe from High Tech to manufacturing are looking into transforming their business using digital technologies.
Many companies have been very successful in managing the change. There are companies such as BMW, Lego or Wärtsilä to name a few examples. The World Economic Forum has collected some Digital Transformation case studies here.
Let’s take a look at the four key areas where CEOs are embracing digital and executing digital transformation. How do transform the way your operations work?
According to PricewaterhouseCoopers study the following areas are in focus by the CEOs when preparing their organisations for digital transformation.
The 4 key areas in Digital Transformation
Reinvent & designing a compelling customer experience. Understand the customers (data) and create new touch points (apps). Design from outside in.
Services & Products
Differentiate and capture new revenue streams by introducing digital value adding services. Improve service on a constant basis based on customer feedback, data and advanced analytics.
Processes & Operations
Optimise processes using data and insights. As an example a bakery can Increase operational efficiency.
Manage change as it's the people, not the technology, that are at the core of digital transformation.
Make sure communications can reach all employees, not just the office workers. Introduce a new data flow within company to provide more visibility and to empower employees with Data and insights. Enhance better collaboration.
*PWC How Finland is embracing digital transformation – Digital challenges and successes showcased
**Leading Digital; Turning Technology into business transformation, George Westerman, Didier Bonnet, Andrew McAfee 2014