"We don’t use technology solutions to solve technology problems. We use technology solutions to solve business problems,” Daniel Newman, principal analyst and founding partner of Futurum Research + Analysis, shared during the Americas’ SAP Users’ Group (ASUG) Webcast Digital Transformation and Innovation at Scale Across Industries. “By adapting and innovating quickly with emerging technologies, the speed in which you are constantly looking to use technology and growing your culture to take advantage of them will inevitably help companies become disruptive by nature.”
But all too often, companies fail to find the right digital strategy that will propel them into the stratosphere of industry leaders such as Amazon, Netflix, Airbnb, Lyft, and Facebook. So what’s going on? Is it possible that they are making digital transformation more difficult than it really is?
As the rate of change accelerates, leadership needs to pay attention to how digital transformation relates to the overall business strategy. Understanding how the interdependence of people, process, and technology breathes new life into the marketplace can set the business on a path towards outperforming and dominating competitors while adding value to every customer’s experience.
But all too often, as Newman noted, executives are caught up in the ever-evolving flurry of favored buzzwords, ideas, and terminology. “Every single business is challenged by technology jargon, especially digital transformation, digital disruption, and innovation. It is important that there is a baseline understanding that these terms are all distinct and not interchangeable.”
By knowing how these terms interconnect, companies can set a firm foundation for success for years to come:
Companies that are successfully innovating and overtaking their competitors are the ones that understand how to address four fundamental elements:
By unifying these components, companies can deliver the tools they need to make better decisions and offer products and services that resonate and evolve with customers. Such a foundation is critical because, as Newman suggested, “there is simply too much data flowing through businesses right now – we don’t just need analytics; we need analytics and insights now.”
Technology that helps users cut through a massive volume of data so they can get the right information and pair it with their experiences is invaluable in today’s economy. “For example, machine learning helps people make better decisions faster by leveraging quantitatively supported forecasting metrics, facial recognition, and pattern detection,” Newman continued. “Meanwhile, blockchain helps improve how we validate information, verify transactions, and establish a system of checks and balances to make sure data [from which decisions are made] is accurate from the perspective of the business and consumer.”
Digital transformation of any kind is never easy; however, it doesn’t make sense to make it harder by moving forward without the right mindset, culture, data, technology, and partnerships. Before innovation can happen at a competitive speed, the people powering the business at every level and in every organization need to buy into change and embrace innovation with ease.
As Newman noted in his discussion, it is imperative to build a strong culture around change and innovation. There are just too many hurdles to overcome in the process – and a weak culture will only magnify them.
Contemplating people, culture, and a changing mindset when starting any digital initiative sets the foundation a business needs to transform. But more importantly, it opens up a platform for imagining the possibilities and experiences the company wants to create – even without considering the limitations of finances and politics involved.
Article By : Paul Kurchina