The world has changed. We’ve seen massive disruption on multiple fronts—business model disruption, impact from cybercrime, new devices, and an app centric world. Power of this network is crucial to success in a mobile first, cloud first world with this ever increasing amount of data that we have at our hands. Internet of things or IoT, we can connect instrumented devices worldwide to use new data to transform business models and products.
Disruption comes in many forms. It’s not big or scary, – it’s just another way of describing change and evolution. In the 80’s it manifested as call centers. Then, as the digital landscape began to take shape, it was the Internet, Cloud Computing … now it’s AI.
Now everyone is talking about “Digital Transformation” and it may mean different things to different companies, but in the end it will be a simple salvation that will carry us forward. If you Bing (Remember, I had worked 15 years in Microsoft before experiencing Digital transformation from the lens of the outside world)“digital transformation,” it says it’s “the profound and accelerating transformation of business activities, processes, competencies, and models to fully leverage the changes and opportunities of digital technologies and their impact across society in a strategic and prioritized way.” Let me simplify it, keep reading:)
Do you watch Sci-Fi, I am assuming you have watched Star Track series? We are stealing our ideas from there, Star Track team wished to patent them to get royalty:). But in all seriousness we are forecasting our future with our imagination. Whether the robot assistants of 2001, or concept of Artificial Intelligence. So, lets move on to why it is needed in current world, your world.
The challenges facing businesses today are familiar: engaging customers, empowering employees, optimizing operations, and reinventing the value they offer to their customers. However, what has changed is the unique convergence of three things:
- Increasing volumes of data, particularly driven by the digitization of “things” and heightened individual mobility and collaboration
- Advancements in data analytics and intelligence to draw actionable insight from the data
- Ubiquity of cloud computing, which puts this disruptive power in the hands of organizations of all sizes, increasing the pace of innovation and competition
OK, so explain DT in simple English (USE CASE)
Hernan Marino explains it by giving specific industry examples to make is simpler.
Automobile manufacturing used to be the work of assembly lines, people working side-by-side literally piecing together, painting, and churning out vehicles. Made a transition to automation, reducing costs and marginalizing human error. That was a business transformation. Now, we are seeing companies like Tesla and BMW incorporate technology into their vehicles that essentially make them computers on wheels. Cameras. Sensors. GPS. Self-driving vehicles. Syncing your smartphone with your car.
The point here is that companies need to make the upfront investments in infrastructure to take advantage of digital transformation, and that upfront investment will pay dividends in the long run as technological innovations abound. It is our job to collaboratively work with our customers to understand what infrastructure changes need to be made to achieve and take advantage of digital transformation.
Harman gives another example of Electric companies. Remember a few years ago, when you used to go outside your house and see the little power meter spinning as it recorded the kilowatts you are using? Monthly, the meter reader would show up in your yard, record your usage, and report back to the electric company.
Most electric companies then made a business transformation and installed smart meters – eliminating the cost of the meter reader and integrating most homes into a smart grid that gave customers access to their real-time information. Now, as renewable energy evolves and integrates more fully in our lives, these same electric companies that switched over to smart meters are going to make additional investments to be able to analyze the data and make more informed decisions that will benefit both the company and the customers.
That is digital transformation. Obviously, banks, healthcare, entertainment, trucking, and e-commerce all have different needs than auto manufacturers and electric companies. It is up to us – marketers and account managers promoting digital transformation – to identify those needs and help our clients make the digital transformation as seamlessly as possible.
30 SECONDS PITCH
Digital transformation is a fancy buzz word, but it is present and future. It is re-envisioning existing business models and embrace a different way of bringing together people, data, and processes to create value for their customers through systems of intelligence.