Traditional businesses and digital transformation
In last 50 years, IT had profoundly transformed businesses twice and today we stand at the edge of third transformation. The first transformation was during the 1960-1970 about process automation — automating individual activities in the value chain from order processing and bill payment to manufacture resource planning. The growth of the internet drove the second wave of IT transformation during 1990-2000, which enabled co-ordination and integration across activities; with outside suppliers, channels and customers across globe. Now we are on the third wave of IT transformation, called digital transformation, which is driven by emerging digital technologies. Some of these emerging technologies driving the digital transformation includes mobility, big data and analytics, social media, cloud computing, Internet of Things (IoT), artificial intelligence, machine learning, robotics, wearables and 3D printing.
In digital transformation, technology moves out of the mainstream of enterprise and changes drastically the way we shop, work, bank, book our holidays or even take a cab. At a collective level, these technologies are disrupting established business models and transforming the way we conduct businesses. In this digital wave, the common question asked is “How can I transform my business to be ahead of my competitors in the digital world?” To transform businesses, digital transformation framework was proposed by (George Westerman, 2014), which comprises three unlike elements as pillars: • Transform Customer Experience: Important aspect of digital transformation are shifting customer experience and contains — understanding customers, top-line growth, and customer touch points. Usage of social media empowers businesses to transform customer experience via co-creation, participation in real-time exchanges, improved brand strategy using a low cost multidimensional information and audience extension. • Operational Processes Transform: Apart from transforming customer experience, companies should also realise the benefits of transforming internal processes through performance management, worker enablement, and digitisation. Transforming Business Models: Foremost blocks of business models transformation includes digital globalisation, formation of new digital businesses and digital modifications. Each of these three pillars, though encompass different elements formulate building blocks for digital transformation.
Success stories
Some of inspiring digital transformation stories are:
McDonald’s
There has been a considerable shift in consumer behavior and McDonald’s adapted digital way of attracting customers. In 2015, McDonald’s began installing kiosks where customers can speedily tailor their hamburgers. Also, they were the first company to adopt Apple Pay Mobile pay and are still continuing to look for new innovative solutions.
Disney
When in 2011, Disney observed a declining rate of customer satisfaction, they announced My Magic+. My Magic+ consists of a wristband, mobile app, and website. This allows Disney to track and analyse customer behaviour thereby create a seamless and personalised Disney experiences.
EmiratesNBD
In 2017, EmiratesNBD, launched the mobile application called Liv, which allows customers to open their bank account instantly from their smartphones through simply scanning in their Emirates ID card. Apart from using the app for banking, the application can also be synced with fitness tracker, social media and live chat. The application is still fresh and we hope that much more innovate transformation happens soon.
The prevalent challenge of efficacious implementation of digital transformation is that business leaders should be readily investing in digital talent and advanced technology to stay pertinent and competitive in contesting marketplace. A study by MIT and Capgemini (George Westerman A. M., 2012) shows that the digital leaders outperform their peers in every industry and only firms who have positioned themselves to capture the real benefits survives the third transformation phase. The writer, is PhD (CS) and GMP (IIMA), Certification in Marketing, Customer Analytics from Wharton School (University of Pennsylvania) and Electronic Commerce from NTU, Singapore. Currently is Associate Professor (Information Systems) at Skyline University College, Sharjah, UAE. Views expressed by him are his own and do not reflect the newspaper’s policy.