Digital transformation may be decades old, but there are also misunderstandings:
Many companies disproportionately focus on the back end and neglect the customer front. Other companies know that digital transformation is important, but assume it is a complicated and time-consuming task. Ultimately, and perhaps the biggest myth of all, in my opinion, is the idea that companies are incapable of undertaking digital transformation efforts on their own and must rely entirely on consultants to do the work for them.
As a result, companies are unable to reap tangible and significant benefits from their digital transformation efforts. Here we’re going to look at some myths about digital transformation, the trends they’ve uncovered, and what’s needed today.
Four big lies about digital transformation
Many business leaders have taken the first step with digital investing, but realize they have not yet reached their goals. Many of these digital illusions stem from these myths:
1. It’s at the back.
In my experience, business leaders tend to focus on the back end when they think about digital transformation. However, this makes the front-end very weak from the customer’s point of view. Investing in back-end capacity can improve operational efficiency, but its impact is not visible to customers.
Therefore, a scanned background has a limited impact on metrics such as NPS, turnaround times for customers experiencing processes, and completion rates.
2. He is older than 5 years.
Many companies have long roadmaps for their digital transformation investments. Digital transformation is considered difficult, takes time, and takes years.
If companies focus their efforts on replacing deeply integrated backend systems, this could be true. But the first digital transformation can be achieved much faster.
3. You must close the trades.
Business leaders may be reluctant to invest more in digital transformation because they believe the company should be suspended. But this is not true:
digital transformation, if managed properly, can have a minimal disruptive effect on day-to-day operations by synchronizing directly with existing systems rather than replacing them.
4. IT must lead the digital transformation.
Ultimately, companies lost confidence in their ability to lead their digital transformation efforts. They rely on IT/CTO to “make” them digitally.
However, the downside is that they are not aware of the client’s needs and can undertake projects that are not suitable for the client/company. Millions of dollars and years later, it remains an irrelevant portal that is rarely used.
Three trends that have exposed these lies about digital transformation
These misconceptions about digital transformation are starting to disappear. This is mainly due to the following trends:
1.The Rise of SaaS: SaaS Software Enterprises (SaaS) has helped business leaders realize that digital transformation doesn’t have to be complicated, time-consuming, or IT-intensive.
SaaS products typically require little or no coding to implement, integrate seamlessly with existing systems, and are easy to scale as demand for services increases.
2.The economics of APIs: Most digital software today has APIs that connect to other third-party applications and portals. This means that companies do not need to upgrade their existing core systems. Businesses can easily plug-in technology that enhances their core systems.
3. The Covid-19 crisis: The pandemic has accelerated digital transformation trends, driving companies to adopt customer-centric technology quickly. While companies view digitization as a pre-crisis wave, the pandemic has highlighted the danger of relying on outdated channels and personal efforts.
Although to some extent the pandemic is on the brink of extinction, customer demand for affordable digital and third-party services remains strong.