Digital Transformation: 6 Keys to Success
The digital transformation market is expected to reach $1,009.8 billion by 2025, growing at a compound annual growth rate (CAGR) of 16.5% during this period. It is predicted that 65% of the global GDP will be digitized by 2022 (Source: Research & Markets, 2020). The transition to a digital mindset requires several changes and certain underlying traits. We identified six core elements that are interconnected to create a digital mindset and digital transformation framework.
A leader’s role is most important during times of change, and demonstrating a positive mindset starts at the top. A study found that organizations with leaders familiar with digital technology were 2.3 times more likely to succeed in transforming. The same increased success rate was found in organizations with a dedicated chief digital officer. Leading digital transformation requires a top-down approach, which goes hand in hand with digital maturity.
Having access to data is vital in any digital transformation playbook since it fuels the breakthrough insights that AI and machine learning provide. The utilization of these existing technologies won’t work without access to data. Combined with expert predictions about the role of big data in 2020 and beyond, data will only become more valuable in the future.
Successful incorporation requires a talent pool that is ready for digital transformation; this is a roadblock for many organizations. To keep stakeholders up to speed, companies invest in training and retraining programs. Companies should aim to create a company culture – whether through talent acquisition or educational opportunities – that reflects those found in companies that have been digital since the beginning.
Make a bold move. An organization cannot implement a digital transformation framework broadly unless it undergoes a top-down overhaul. There is still a need for some ramp-up; in fact, many digital transformation projects fail because they attempt too much, too soon. Transformation efforts should begin behind the scenes rather than with client-facing operations, for example. However, the ultimate goal should be transforming the entire organization.
Digitally mature companies view their organizations as empowered, prepared to convert disruptions into advantages. This is the essence of agility. Agile organizations optimize cross-collaboration between functions. Embracing dynamism as it pertains to talent allocation and team formation is also essential.
An organization’s adaptability refers to its ability to restructure while still remaining secure (and cyber-secure). Incorporate new systems quickly, while keeping an eye on newer, more effective ones. This is what adaptivity is all about.
There are risks in Digital transformation, but the potential is enormous, and best practices are being developed as we speak. When companies want to take advantage of these transformations, they need to hire the right people, define a digital mindset, and create flexible action plans. Reevaluation will be a constant process. Organizations as a whole are being reexamined. For companies that are capable of adapting to the drastically changed mindset that digital transformation demands, the future promises big things, despite its evolving nature.