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Resource Centre | February 16, 2019

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The state of digital transformation

Is your organisation embracing digital transformation?

We live in a digital world, one where technology has evolved beyond tools to infuse itself into every element of our personal and professional lives. We are using computers and connected devices for almost everything – they are on our desks, in our pockets and even integrated into our clothing.

Unsurprisingly, for businesses to keep pace with the competition, implementing a strategy of digital transformation is essential. Adopting cloud computing services, data management and analytics technology and modern business process management solutions are all vital ingredients in achieving the ultimate goal of better customer service.

According to research by IDC, however, many organisations may be lagging behind in their efforts to adapt to this new world. An April 2016 report from the analyst firm found that, while 22 per cent of businesses surveyed considered themselves either digital transformers or disrupters – with purposeful efforts in place to reach digital maturity – transformation from the remaining 78 per cent is uneven, if it exists at all.

Adopting new innovations is the heart of digital transformation.Adopting new innovations is the heart of digital transformation.

Concerning statistics about digital transformation

There seems to be little argument about the benefits of transitioning to digital operations – the 2016 Gartner CEO and senior business executive survey found that 84 per cent of respondents expect digital change to bring higher profit margins. That said, IDC's research is just one example of the troubling findings industry observers are noting with regards to digital transformation.

For businesses to keep pace with the competition, implementing a strategy of digital transformation is essential.

A similar survey carried out by market researcher YouGov revealed that, despite the potential benefits, just 14 per cent of organisations have successfully made the switch in all intended technology investment areas. Almost half reported some partial migration, but the fact that so few have wholeheartedly embraced a strategy of transformation suggests that the challenges involved are proving incredibly difficult to overcome. 

So, what exactly are the biggest barriers to successful digital transformation, and how are market leaders overcoming them?

Adapting with agility

The pace of digital innovation seems to have caught a number of organisations off-guard, leaving some scrambling to put together a cohesive plan for the future. The vision for digital transformation must be clearly devised, and organised in such a was that it can be easily communicated across the business. Outlining precisely what digital means, how transformation can benefit each department and, and the potential impact digital can have on the customer experience are all critical for success. 

According to Deloitte, just 15 per cent of companies at the early stages of  digital maturity believe their organisations have a clear and coherent digital strategy. Among digitally maturing businesses, however, that figure leaps to over 80 per cent.

Nurturing a culture open to innovation is critical.Nurturing a culture open to innovation is critical.

Freeing the organisation from legacy solutions

There's a well-known term amongst corporate and IT teams that speaks to a hesitance to adopt innovative new techniques and tools – Not Invented Here syndrome. Essentially, the term relates to organisations or individuals that favour products and solutions developed internally over external products, even in cases where an external solution may be a superior option.

Building a culture that is more accepting of change within the organisation can help businesses free themselves from the shackles of outdated legacy systems, and experience the best of what the digital age has to offer. Communication plays a significant role in the digital transformation journey, and nurturing a working environment that is open to innovation can yield tremendous benefits, even at the expense of established processes.

Guidance for digital transformation

Overcoming these challenges isn't necessarily something your organisation can do alone, but there is expert advice available if you know where to look. ANATAS is in the business of solving digital problems, a leading provider of service integration, services and products that deliver comprehensive end-to-end solutions to drive business performance. Get in touch today, and move from being a digital explorer to a digital transformer.

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