Saturday, February 4, 2023

Three Routes to Future-Readiness for Digital Transformation

By Umme Sutarwala - October 31, 2022 4 Mins Read

The road to a successful digital transformation is not one-directional. Regardless of the approach or approaches adopted, everyone must comprehend the strategy and how the many components work together, even though certain ways may be more or less appropriate for a particular organization.

Only over 10% of the more than 1300 IT leaders polled for Red Hat’s 2022 Global Tech Outlook report stated they had no plans, hadn’t started, or were just starting their digital transformation process.

Even if firms understand that people and procedures will be more crucial than any particular technologies, they still have questions to address.

Which route firms should pursue to maximize the value of their digital transformation efforts is one of the most crucial concerns.

Here are a few suggested routes for preparing for the digital transformation of the future.

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Please customers first

On the other hand, a business might initially place a high priority on Customer Experience (CX). Early on, this is more fulfilling because customer satisfaction ratings and possible short-term sales growth are on the rise. This is due to the fact that digital transformation can take the form of small-scale innovation initiatives that concurrently address the demand for mobile apps, better contact centers, and new customer services. The necessity for a single platform is not as great as it was throughout industrialization.

The hardship, however, is probably evident in that improvements frequently involve new, stand-alone systems that increase the complexity of already complex systems, data, and processes. This raises the cost of providing customer service and puts more of a burden on employees to go above and beyond in order to fulfill promises.

The secret lies in identifying when businesses have accomplished significant customer experience goals and concentrating on operational effectiveness and a platform attitude.

Industrialize

Operational effectiveness is the focus of an industrializing path. This method has a lot in common with early conceptions of cloud computing and earlier standard operating environments.

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The majority of people want to virtualize complexity so that consumers, many of whom will be using mobile devices to access services while on the go, may receive what they need in the most straightforward manner feasible.

Industry analysts contend that adopting a platform attitude of silo integration, clean data, automation, and efficiency is necessary for success along this approach. Additionally, they point out that this industrialization process is now quicker, less dangerous, and less disruptive than it was in the past because of cloud computing, Application Programming Interfaces (APIs), better solution architectures, micro services, software/product as a service, and agile IT teams.

Typically, businesses choose this strategy when their current Customer Experience (CX) is “good enough” and improving operational effectiveness is their more urgent strategic objective. This approach’s necessary cleansing of legacy systems and data can make it seem like not much is occurring at first, which can cause failure and disappointment. The important thing is to keep going because once a new platform is created, innovation and the launch of new services become simpler. However, efforts to streamline processes and lower expenses must come first.

Switching the focus

It’s legitimate to wonder at this point: “Why concentrate so intensively on operational effectiveness or customer experience? Why not tackle both at once if businesses would ultimately need to deal with both? Firms can use well-defined minor projects to progress down this pathway, which experts and companies refer to as “stair steps” that switch between enhancing CX and enhancing operations until they reach their goal.

Alternating focus runs the risk of leaving one with no focus at all. Any corporate transformation initiative needs discipline and a clear understanding of the decision-makers. However, it’s crucial and essential to the success of this strategy. Asking management to explain how a given project fits into the overall plan, specifically how to harmonize between CX and operational efficiency projects works, is recommended by experts in the industry as a solid approach to determine whether an enterprise is adequately disciplined.

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AUTHOR

Umme Sutarwala

Umme Sutarwala is a Global News Correspondent with OnDot Media. She is a media graduate with 2+ years of experience in content creation and management. Previously, she has worked with MNCs in the E-commerce and Finance domain

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