Dispel the Top 4 Myths about Digital Transformation

As digital consultants, we come across a wide variety of perspectives and viewpoints as well as misconceptions in our dealings with enterprises large and small. When working with businesses that are just starting to be aware of the digital transformation opportunities, we typically spend time and energy getting them up to date on the overall landscape.

Interestingly, even when working with organizations that are more aware of the digital technologies landscape, we’ve found that a number of misconceptions persist, which cause these businesses to do too much, or to excessively focus on specific aspects while ignoring the bigger picture.

Based on this experience, we’ve identified a few common misconceptions–or myths, about digital transformation. We’re not looking to make an exhaustive list, but here’s a quick overview of some of the most common myths:

1. Every company should undergo digital transformation

The myth that every process & every company should transform would hold true if it were a software upgrade or some improvisation technique. The revenue, market share, and profit of the organization would determine the impact of the transformation initiative. As our digital consultants would tell you, before even thinking of transformation you need to assess your organization’s existing processes and whether they would be able to adapt themselves to the new model. Your company should be able to inherit those modifications smoothly and efficiently.

There is a lot more to digital transformation than just trying to become an online business. In fact, that may not even be the right goal in most cases. The idea should be for you to deliver on your niche products or services and simultaneously develop new lines of revenue. To achieve this, you might not need to transform every process. Not all processes are equal from a digital transformation perspective: some maybe only tangentially connected with the new digital revenue streams you’ll be developing, and others may have no direct impact on your digital initiatives, at least in the short term. As such, the transformation of existing business systems, rules, procedures and models might not always prove to be helpful even if it seems to be affordable and doable.

With digital consulting services you can streamline the vital processes of your company. Your transformation process must help you leverage technology to expand the company’s core strengths and create a competitive advantage to prevent you from becoming obsolete.

2. Only technology enterprises can become digital natives

We often equate the evolution of digital transformation to disruptive technologies, and as a result, assume that digital transformation is the prerogative of technology companies. That’s certainly not the case, as undertaking a journey of becoming a digital native enterprise is a lot more complex than simply adopting a few new technologies. However, there is a lot more to it.

We can dispel this myth by using examples from our own experiences. From popular restaurant chains to leading insurance agencies, we have helped them all in their transformation journeys.

While deploying some new technology is almost always necessary, just deploying new technology will not get you the results you are hoping for.

The first steps in the digital transformation journey invariably need to focus on identifying processes, envision product or service improvements, reimaging customer experience, and so on.

3. IT can bring about digital transformation on its own

IT drives Digital transformation; however, it is not entirely dependent on IT. Digital Transformation is much about leadership than IT, and digital leadership demands a wholly new mindset at every level. This digital mindset helps assess how the technology will be used to innovate in terms of business model or product offerings and will drive value for the business. According to predictions made by digital consulting firms, the 3 factors that will drive digital transformation for the balance of this decade are: creating value for the business, strong leadership and culture of constant change.

When working with one of our clients from the healthcare industry, we observed that what really needed to be changed, apart from their existing IT systems, was their outlook on the workplace culture. Technology is a powerful enabler of Digital Transformation, however, besides technology, the people, the organizational structure and the resources that the business has, are key differentiating elements to set this transformation successfully. The organizational structure should be such that it supports the objective of the project. The culture must connect people and systems. An open mindset that accepts the rationale for change would be an added benefit for the entire journey of digital transformation.

4. Digital Transformation is an extravagant & rapid process

Digital transformation is a challenging and complex task, and hence it requires utmost clarity and step by step supervision. Taking on too much at once causes you to miss out on the little details and the foundational elements.

Additionally, too many people continue to be unaware of the varying pace in a transformation journey: You might start off seeing very rapid progress initially, but the momentum will slow down–as it should–when things start to scale beyond a little innovation lab into the wild. Pacing your transformation journey correctly is critical, and knowing when to expect rapid change and when to slow things down is essential.

Digital Transformation isn’t a one day task; when we take up the task of transforming a business, we do it with utmost patience and keen observation of what strategic change would work best for you. It is a continuous process finding relevant answers, understanding what you’re solving for and what results you’re seeking to achieve. Simultaneous application of technology will make your transformation journey a smooth ride.

It’s very important to have a proper understanding of what digital transformation entails for your business and try to make it work according to your requirements.

Instead of sitting back and allowing yourself to believe in these preconceived notions, why not get in touch with digital consulting firms with knowledge and expertise on how technology can make your business run more efficiently and guard against disruption?