Digital transformation is a buzzword which has crept into the language of business in recent years, and the definition of the term varies greatly. At Innovation Vista, we define “digital transformation” as the effort to use technology to grow revenue.
Digital Transformation – IT strategy insights for CXOs
Digital transformation is driven by a broader view of Information Technology than its traditional goals of increasing efficiency and automation to help businesses save money and boost productivity. Today, technology has advanced in ways that allow businesses to do much more than what was possible in the past.
Even in its traditional scope, IT has become a major component of most businesses’ success. Most corporate executives and C-suites are comfortable with it in this shape and size, but when there’s talk of re-envisioning IT, even with the promise of greater impact, CXOs can become understandably nervous.
Hesitations on Digital Transformation
One of the main reasons many CXOs hesitate to do more with their technology is because of fear:
- fear that their business may not operate as well with the new technologies because there are too many changes at once
- fear of digital transformation is valid but unnecessary – that the impact won’t justify the investments
- fear of becoming dependent on unfamiliar technologies for a larger aspect of a company’s results
- fear that more of the organization’s information will be put at risk to hackers
- fear that the (considerable) hype surrounding Digital business will fall short on results
A key part successful digital transformation is assessing the needs and opportunities of organizations to ensure that the chosen strategy is the optimal path. Executives are justified in concerns about change, but with the pace of innovation being what it is in today’s economy, doing nothing is often actually more risky in many industries. Concerns about information security are legitimate, of course, but those countermeasures are table stakes in their own right, and many approaches to Digitalization do not raise security risks.
The Reality of Digital Transformation
Digital transformation should not be feared, but fully explored – and where appropriate, embraced. Technological advancements have risen in recent years with the promise of improving operations for businesses in nearly all industries. They help businesses achieve a higher level of success that would otherwise be possible.
CXOs should realize that their organizations may be left behind if they choose to allow their anxieties to stand in the way of digital transformation. Executives who allow their businesses to evolve with technology will make great strides, while those who don’t will lag behind. This process is inexorable, although it is occurring at different speeds in different industries.
How to Move Forward with Digital Transformation
Knowledge is power when it comes to the digital transformation of an organization, and the best way to bring the right knowledge to bear on your company’s IT strategy is to engage an experienced consultant in your strategic planning.