Digital or Business Transformation

Digital transformation refers to the changes associated with the application of digital technology in all aspects of human society. Digital transformation may be thought as the third stage of embracing digital technologies: digital competence → digital literacy → digital transformation. The latter stage means that digital usages inherently enable new types of innovation and creativity in a particular domain, rather than simply enhance and support the traditional methods.

– Wikipedia

It has been more than 30 years since computers had been introduced into business world. With the help of, powerful mobile devices and high connectivity, now we are living in a momentary world that is evolving so fast towards digital that now digital transformation is inevitable.

Most of the C-Levels in corporations started to pay more and more attention to Digital Transformation. They believe, without this transformation, even a long-established company may extinct. It is the Kodak example they are afraid of. To be honest, the risk is there, however is ‘Digital Transformation’ just enough?

Marketing, sales, manufacturing, finance processes should all be digitised in order to fulfil the transformation. It includes working anywhere anytime, broader and faster communication, enterprise integration that would enable performance & efficiency improvements.

That is all well planned and should be executed step by step. Yet can you imagine any change to be internalised without a holistic approach? Without embarking every team member, adjusting / improving their competencies, engaging them all around the same evolving mindset…

That’s why, we believe this topic should be handled with a broader scope and it is the reason behind we like to call it a “Business Transformation’ rather than a Digital Transformation.

In other words Business Transformation shall handles the topic more broadly including mindset and organisations, leadership and entrepreneurial mindset, education and pragmatic planning.

Your Business Transformation journey is unique

Every company has its own inner dynamics and every category has its own realities hence your journey should be tailor made to your business. When there is so much at stake, it is not an easy task to move the rocks around, without rigor planning, sufficient on-boarding, kicking off the new mindset with an adjusted organisational structure.

The internal impact – Mindset & Organisation

Any change in a company first impacts its own resources, starting from human. Top-down transformation approaches tend to stay at the top level with Digital Transformation Teams, causing manager level (or further) to think it is not their business. The only way to beat the resistance to change is to embark the resistors ASAP.

Corporate and entrepreneurial mindsets are two far ends thus moving from one to other is not given. However, with the power of a corporate company, an entrepreneur mindset can achieve higher goals sooner. That’s why, we should keep on increasing skills of the individuals in our organisation, empowering them to move forward within the team.

The Impact on Consumer Experience

Digital transformation for the consumer end includes an architecture of your digital ecosystem to be able to do better listening, segmentation and tracking, enabling you to increase your digital media investments efficiency, letting you to fish where the fishes are. All these changes will definitely have a positive impact on your consumer engagement and thanks to the new tools, we will be able to measure the ROI of your campaigns / activities.

Step by Step Approach

As said, digital transformation is a key stage throughout this journey. All your existing processes should be analysed with expert analysts according to the dynamics of your company and industry. Only after then, a solution can be determined and tailored to your needs. The gains here are not necessarily immediate, therefore long term investments should be planned with an entrepreneur mindset.

All in all, Digital Transformation is inevitable in this era, we just need think it as broad as it requires to land it well in your organisation. As Portera we are committed to understand, analyse together and help you build the right organisation to reach this new mindset fully.

Why Digital Transformation Is Private Equity’s Sharpest Tool

Private equity groups are always looking for the sure thing – it’s part of their culture. It’s not surprising they’ve been so slow to embrace Digital Transformation, but money is usually pretty conservative. So here’s a wake-up call for anyone in private equity – you need to take Digital Transformation seriously and make it one of the tools of your trade.

Private equity has to create value in its acquisitions. That’s pretty obvious and we know the common strategies. In the past, a private equity firm would acquire a business with the intent of growing it and hopefully acquiring another, putting them together and building greater value for both companies. Part of that process would involve creating efficiencies within the new company through economies of scale and instituting better practices for sales, marketing, supply chain and operations.

That’s what Digital Transformation is all about – creating greater efficiencies and best practices – but for the digital age – not the steam age. Private equity has to realize scale is not the only efficiency – from customer management systems (CMS), to building out robust e-commerce engines, to exploding a brand, Digital Transformation can turn around an undervalued company and absolutely smash competition with just a bit of digital vision.

Digital Transformation affects all aspects of a company – and each aspect represents another potential growth point for private equity. Think about this: private equity firms always worry about losing key employees after an acquisition. A well executed Digital Transformation always includes a clear digital vision delivered to the company first – and always considers how to improve its employee’s work experience by utilizing every chance to supercharge internal processes and efficiencies. Think how that will affect morale during a take-over – and help improve ROI.

In fact, private equity firms would all be wise to initiate a Digital Transformation within their four walls. You can’t just pound your chest like a gorilla – you have to rip the antiquated doors off your own walls. Sure, hedge funds are computerized out the yin/yang but private equity firms struggle. In addition, how well do they manage their own digital presence and their public digital profile – their leadership casting? Are they active on the social media front? Are they providing opportunities for top talent to share their vision – and build their digital profile? Everyone in PE firms know a sharp suit is important for first impressions – so help your firm, and your people, look sharp on the web.

These are just a couple of examples of how Digital Transformation can affect both the efficiency and culture of a company – before it even addresses creating greater revenues and new markets. Every PE firm in the world should be making Digital Transformation part of their tool set before they are the ones that get out transformed!

Digital Transformation – What It Means for Global Enterprises

Fundamentally, a business enterprise would exist in a ‘going concern’ to make profits and maximize the shareholders’ value. To be able to deliver business results consistently then becomes most important objective. There could be a number of strategies, programs and policies that an enterprise would practice to deliver business results. Digital transformation is one such innovative strategy that an enterprise could look to practice in a structured and time bound manner.

Here is an important dimension that I would like to highlight, and to put it simply, digital transformation would bridge the gap that always existed when Digital (in business parlance this would mean Information and Communication Technologies) became necessity for efficiency, but remained a huge cost center and avenue of change inertia for a majority of times. It is all about getting closer to transforming this cost center to a revenue center, by consistently and selectively applying Digital to get closer to customers and stakeholders alike to make difference to the way they live, or do business, or collaborate.

For global enterprises what this means is that when its digital interests are driven by keeping its customers at large in focus they can be construed as making significant strides in their digital transformation strategy. Depending on what stage of technology adoption they are into (1st, 2nd or 3rd generation) the DT intensity would vary. For instance, recently I wrote an article on how GRC solutions can be revenue enablers – GRC then becomes a part of a broader digital transformation strategy.

A majority of new age business enterprises would have made substantial investments in implementation of most grass root enterprise systems. That is a whole reasons why from the technology provider ecosystem do we get to hear about mobile, analytics, social and cloud most of the times when it comes to digital transformation, which is a contemporary articulation. The fact remains that it is up to the CIO and other CxO executive team members to figure out what would be a right beginning of their digital transformation program and what would its life cycle look like in their company. In other words, an enterprise could really be ready for digital even if they aren’t talking about social, analytics and mobility, similarly, even if a relatively new enterprise (such as a start-up) can still be talking of massive investments into DT even if they do not use large enterprise systems, for instance an ERP. As we said, the key to remember, and hence to derive most benefits of amazing digital transformation program, is to know how and if digital investments made by an enterprise are taking it closer to a customer to make difference to the way they live, or do business, or collaborate.