Digital Transformation in enterprises
The first answer to how much we are able to invest every year in technological modernization, would allow us to carry out digital transformations in a continuous way, since if it is not done so, we will make a transformation experiment, and it will remain in that, in a experiment.
It only takes 1 minute on the Internet to find objective information on the progress of digital interactions in the world:
- During the last 7 years, e-commerce is growing steadily between 20% and 30%.
- In 2016 each person is on average 3 hours and 20 minutes using his mobile device.
- More than 90% of the population in developed countries use the Internet habitually.
- All children under 30 years old use the Internet, technology and devices MASSIVE.
- Next year will be all children under 31 years, the next all children under 32 years and in 10 years, all children under 40 years will be hyperconnected.
Many large corporations, multinationals and large-scale organizations are also far behind where they should be. Users go much faster, demand digitization that takes years to arrive, and when it arrives it is late, they focus on “keeping” what they have, and they do not realize that the only way to keep or grow is to be agile , responding to the evolution of the environment around them, and treating Continuous Digital Transformation as a strategic axis, and not as something that is done to “cover file” or “when there is no remedy.”
Usually companies ask the following questions: should we digitize? Have a computer tool to help us in the production process? Should we have an APP? An INTRANET? Now, or do we wait a little longer? Does it seem that others are using the technology?
The question is not WHEN to make a Digital Transformation. The question is not WHAT process I transform digitally. The question is not HOW I modernized myself. The question is not WHY do I have to invest in technology.
The question must be: HOW MUCH will I invest every year in technologically modernizing my company. HOW MUCH I can bet on it. Until we have a strong answer to this question, we can hardly respond to the others.
It is curious to see when a company (large or small) in a sector, is committed to Continuous Digital Transformation, and makes constant investment in technological improvements. At first no competitor perceives it, as it simply improves its productivity (which gives it more financial lung), improves its billing (because it offers something a little different and is gaining customers, and therefore, it increases its financial lung) . And without realizing it, 2 or 3 years have passed, and not only does it recover what it invests, but it generates more margin than that of its competitors, and since it is aware of technological investment, because it is what is making it grow, it increases investment.
At that point, at 2 or 3 years, just before increasing investment, the company is in this situation:
- Your management team is technology-conscious.
- Its management team is accustomed to defining technological processes.
- His human team is accustomed to digital transformation and quickly assume any modernization.
- Many of its processes are already modernized and digitized.
- Its customers perceive the value of this company.
- And at that time it makes a snowball effect, or virtuous spiral, where all the factors help one another, and its differentiation in the market begins to grow dizzyingly.
Then the competition says “and what is this doing?” “Overnight is rising like foam.” And there comes the imperative need to do the same thing that is doing that company, but we are very far from them, as we have to invest intensely, our team is not familiar with technology, our management team does not understand well either, and our processes are not digital, so we start from scratch, and as we move slowly, the other company is running faster and faster.
In conclusion you should work on the following aspects to start a digital transformation in your company:
- Put your management team to attend talks, workshops or courses that have to do with new technologies or digital trends. They need to understand this ecosystem to a sufficient extent.
- Put your team to attend courses and workshops that deal with these issues, to increase the internal culture of technological change.
- Decide HOW MUCH you can invest each year decisively.
- Hire someone with the ability to lead that technological change, or get into the hands of a company that specializes in this type of digital transformation. And whether employee or outsider, think that person or company is someone who should be very close to your strategy, and treat it as a close strategic partner, because you need to be by your side.