The Digital Revolution is rapidly taking us into an utterly transformed and completely digital global economy.
Yet fewer than 20% of large companies have anything like a well-defined strategy to become a value-creating digitally-competitive business. While their number could double to 40% by 2020, are reach 80% of companies by 2025, only such companies will prosper. Those who fail to "digi-transform" will simply wither and die.
Digital Revolution Platform is Transforming Every Industry
Successful digi-transform companies will enjoy booming revenue growth because they will digitally transform themselves to tap the three major elements of the new Digital Revolution economic platform, as follows:
(1) Big Data: The digitally smart enterprise thus will use masses of real-time Big Data to deliver personalized and optimized digital service experiences, based on new and fast-evolving insights into the digital customer. Every data stream will be monetized to the extent possible.
(2) Internet of Things (IoT): The main sales and revenue growth engine will be the IoT. By the end of 2017, there will be at least 40 billion IoT devices, doubling annually, with thousands of new devices added to the network every minute, 24/7. This expansive and expanding network of connected things will create brand new and previously unimagined service opportunities for the digitally-ready enterprise, as all future customers will interact across channels and supply chains. Companies which identify and grasp these opportunities will gain distinct digitally competitive advantages of many kinds.
(3) Artificial Intelligence (AI): This will all be made possible by various forms of AI to mine and refine customer data in infinite detail, in real time. Employees will need to be fluid in various AI technologies, software agent apps, and robotic assistants, using digital dashboards. Only then they will be able to make decisions and help customers instantly as they transaction business with the enterprise across omni-channels 24/7.
Beyond buzz words, the critical point to understand is that the Digital Revolution is utterly transforming our lives, as did the Industrial Revolution driven my steam engines and machines. Business has no option but to transform itself in parallel.
Digi-Transform Vision, Strategy, and Digi-Culture will Drive Success
To succeed, "digi-transform" initiatives must be integrated across the business, with a clear mission to drive revenue from digital customer experiences. Regardless of industry, and whether B2B or B2C, companies must satisfy digital customers via a comprehensive company-wide "digi-transform" strategy and culture, as follows:
(1) Digital Era Leadership Vision and Strategy: The company's digital era vision must be driven from the top by the CEO as Chief Digi-Transform Officer (CDTO), or by creating a distinct CDTO position, reporting directly to the CEO, who coordinates and consolidates all digital initiatives across the enterprise. It is simply too critical to have digi-transform activities left to the CIO or scattered across disparate functional areas, even though all must digitize. As well, there should be a "Digi-Transform Committee" established on the Board of Directors to guide and oversee all digital governance aspects, both risks and opportunities, to ensure the enterprise is fully transformed.
(2) Digi-Transform Culture, Resources, and Skills: To effectively transform an enterprise, initially at least 50% of IT and marketing resources need to be allocated to digi-transform activities, processes, and revenue stream creation, plus human talent acquisition initiatives. New skills are required across all functions to create a "digi-transform culture" as a daily way of thinking. Simply put, everyone must come to work everyday to innovate and to drive digital competitiveness in the best interests of customers. This culture must be built around design thinking and digital analysis for all processes, especially marketing, with a strong focus on IT security, risk, and compliance. Ultimately, as a matter of course, 100% of IT and marketing resources will, by definition, be digital.
Taken together, Big Data and AI applications across the IoT will be huge revenue and profit drivers, the likes of which companies have not seen in decades -- if they become Digi-Transform Enterprises, with a truly digital culture that drives each day's activities to build long-term market success.
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Copyright (c) 2016, Frank Feather
Copyright (c) 2016, Frank Feather
This is the first in a series of posts about enterprise Digital Transformation.
Future posts will address all aspects of Digi-Transform
in various industry and company settings.
Comments are most welcome.