How Should CIOs Rethink Digital Transformation in the Novel Economy?
The pandemic has shattered economies across the globe. But challenging times offer an opportunity for new businesses to flourish by becoming fully digital.
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The ongoing pandemic scenario has shattered economies across the globe. The COVID-19 crisis has widened a performance gap between organizations that invested in technology innovation at a scale before the pandemic triggered and those that did not. But the challenging times offer an opportunity for new businesses to flourish by becoming fully digital as well as contactless. To persevere and prevail, companies of all sizes across industries think of implementing means and ways to minimize the disruption caused to humanity, which makes the current time an opportune one to focus on digital transformation. On top of that, the chance to build improved digital business platforms hasn’t been greater ever.
How Have Businesses Behaved So Far?
It is the charisma of strong digital foundations that leading companies can adapt to the crisis faster. A global retailer that invested for years in true omnichannel sales and delivery started offering curbside pickup at 100 of its stores. When compelled to close its physical stores due to the pandemic, it could expand its curbside service to 1400 stores in a matter of two days. The retailer maintained most of its revenue at the same time.
Let us take another example here to understand the power of technology and digital business transformation in these times. A global food manufacturer having invested in AI-driven tools and “digital twin” modeling capabilities for supply chain optimization before the pandemic began could rapidly access and analyze information critical to logistics. It could thus move supplies closer to production sites and prevent idling a single factory due to a lack of materials.
What Does the Research Show?
Conducted at the end of 2019, Accenture Research measured differences in the adoption of digital technology, its depth, and culture penetration. Findings were that the top 10% of businesses (“leaders”) grow revenue 2x the rate of the bottom 25% (“laggards”). The methods and approaches of leaders and laggards are, of course, dramatically varied. Leaders have adopted AI and automation five times as fast as laggards and have strategies in place that make them confident with regard to the reliability of their data. The report by Accenture shows that digital leaders are not only performing better through the crisis but also doubling down on their investments.
It is, therefore, time to rethink your digital transformation strategy. Most CEOs know the destination, but they are unsure of how to move forward with enough confidence and speed to accomplish the ultimate CX digital transformation.
Grow Mature Digitally
The very first step for CEOs is to understand their organization’s level of digital maturity. All organizations, in these times of post-COVID-19 recovery, should be as good as digital natives. Only then can they unparalleled experiences to their customers and employees. But you cannot alone build your digital foundation. You need new kinds of relationships with cloud, technology, and digital transformation companies. You should recruit those who can help you build and be a part of your digital core. These people should invest in your success and give your business the resources as well as the attention the business demands in the current situation.
Fast-Forward Yourself to the Cloud
Leaders can grow themselves digitally mature and scale digitization across their business faster, only with a strong foundation in the cloud. As you move your legacy systems and applications to the cloud, you get the efficiency, innovation, and talent advantages to doing things quickly and differently. As per the research conducted by Accenture in 2019, 95% of digital leaders are known for their significant cloud capabilities, as compared to only 30% of laggards. You should, therefore, set a target of a minimum of 50% of your business in the cloud in the upcoming one to two years, if you are early in your transition to the cloud.
Act With a Goal in Mind
As a business, you need to have a purpose and your people with you. Articulating your business purpose clearly is the most important to ensuring cutting-edge change management techniques. Such techniques optimally use the power of employees to act with agility and thus drive digital transformation.
Learn from Your Peers
Organizations should think beyond their conventional ways of conducting business to solve complex problems. It is crucial to learn from your customers, employees, and leaders in your industry as well as other industries. In response to the coronavirus outbreak, first responders in health and public sector organizations have been quite agile in adapting interactive virtual agent models from financial services and telecommunications companies with much success.
Maintain the Speed of Your Growth
Now when companies moved faster to grow more mature digitally and found remote working to be the best way out, they need to behave the same way in the new normal. They need to maintain this level of agility. To put it better, businesses should create lean decision-making and governance processes. It is most crucial to evolve your organizational culture to a new way of working in the novel economy.
Are You Ready to Transform Digitally?
Businesses can’t just go about reducing costs and freezing. They need to speed themselves up to new levels of digital performance. Only then can they meet customer expectations and scale to new growth opportunities in the market. As an organization, you should keep in mind the growing health challenges of coronavirus and instill a changed, safe culture. Emerge stronger and become the leaders of tomorrow by comprehending the unique nature of the current crisis and applying new rules of CX digital transformation to their business.
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