SMBs currently investing in digital transformation are 1.9 times more likely to forecast revenue increases than their counterparts with no plans for digital transformation and 1.3 times more likely to forecast increases than those planning for digital transformation. Laurie has built widespread recognition for her capabilities and insights in the small and medium business (SMB) market in several areas, including cloud computing, mobile solutions, business solutions, social networking and collaboration, and managed services. The worldâs obsession with the latest technology, social media and apps revolve around a desire for an easier life. These digital business transformations are influenced/driven by the following factors: Technology innovation, customer behavior and demand, and external environmental factors. And finally organizations have deal with external influences such as regulatory laws, changing economy, market competition, and business partner demands. SMBs know how important it is to start planning for digital transformation: More than 80% agree that technology is reshaping their industries, businesses and workplaces. These are followed by age-old problems including a lack of IT skills, time and money to get things off the ground. In a study of 40 digital transformations, companies that focused on culture were 5x more likely to achieve breakthrough performance than companies that neglect culture. Artificial intelligence (AI), machine learning (ML), Internet of Things (IoT), sensors, analytics and other technologies are teaming up to create sweeping changes across a wide swath of industries and functions. Pick two out of three.". When they get new capabilities elsewhere—from round the clock support to fast returns—they want them from your business too. A Forrester Consulting research study commissioned by Accenture Interactive (click here for report) found that the key drivers of digital transformation are profitability, customer satisfaction, and increased speed-to-market. It offers in-home consultations and installation services, and Total Tech Support contracts provide customers with unlimited support for their devices and appliances, no matter where they purchased them. To support its transformation from print to digital, Goodway Group needed more efficient and flexible solutions for key processes, such employee expense and commission tracking, invoicing, and financial consolidation. This fundamentally changes how you operate and provide value to your customers. |. This is imperative if you are expecting the workforce from all departments to come together and embrace change. What are your thoughts on digital business transformation? To keep it simple, it is the integration of digitalization into every area of banking. Change is hard, but thinking and planning for digital transformation is critical to ensure viability and growth. The need of the patient becomes the focal point of the business. But Best Buy took a fresh approach to transform its business and differentiate based on providing a better customer experience. Reminds me of what I used to tell my clients when I ran a software development company: "You can get it done cheap, done well, or done quickly. A necessary disruption, What is design thinking? Digital transformation is an excellent opportunity to rebrand your offerings. Be it in our homes and our offices, throughout industries and society as a whole, technology empowers dramatic ⦠Customers demand increased technological capabilities combined with the desire for ease of use. The number one choice was “improving the experience of customers, ” followed by growing revenues, improving differentiation, and reducing costs. The take-away from this study is that in a digital business transformation context, all these aspects: business functions, processes, activities, assets, models, and activities are interconnected.This is an essential aspect of digital transformation: the inter dependency and inter-contentedness of everything. What is Digital Transformation—and Why is it Important for Your Business? Prior to SMB Group, Laurie worked in analyst roles as a Partner at Hurwitz & Associates; Vice President of SMB Insights & Solutions at AMI-Partners; and Vice President at Summit Strategies, where her original research of the emerging cloud computing model earned her broad recognition as a thought leader in this area. As they embark on digital transformation, many companies are taking a step back to ask whether they are really doing the right things. Copyright © 2020 IDG Communications, Inc. However, due to the rise and dominance of Apple and Android, they ended up falling behind and subsequently exiting the business. Digital transformation refers to the use of digital technology to better serve customers. The list of reasons could go on, as digital technology has many benefits for businesses, but the best way to know them all is by going digital now. In my experience, this is easier said than done. When you talk about data and Digital Transformation of the Water Industry the first things that comes to most peopleâs minds is concepts such as âBig Dataâ and âData Miningâ in reality the importance of data to the water industry is so much more. It provides businesses with the opportunity to rethink how to use technology better engage customers and employees, and to meet changing business and market conditions. Vendors must create more accessible on-ramps to help more SMBs move from aspiration to execution. If your business is spending so much time just trying to keep up with the daily grind that you have no time prepare for the future, the wear and tear on the business will eventually slow down growth or even bring it to a halt. For instance, Goodway Group, a third-generation family-owned business, has evolved over the past ninety years from a printing press, to a direct-mail marketer, and now, into a digital marketing organization. Hi, Iâm Heather Taylor from Simplicity 2.0âs podcast. All of them will lead to increased profitability and success. Are they easily adopted or is the organization experiencing difficulties integrating this new technology? Customer expectations are being reshaped by digital innovation. Most of us are familiar with large enterprise digital transformation stories, such as Best Buy. What is digital transformation? It impacts not only industry structures and strategic positioning but it affects all levels of an organization (every task, activity, process) and even its extended supply chain. It provides businesses with the opportunity to rethink how to use technology better engage customers and employees, and to meet changing business and market conditions. Capgemini and MIT Center for Digital Business in a three-year study defined an effective digital transformation program as shown in Figure 1 below: Capgemini Consulting Digital Transformation. We can say that businesses who are yet to take a leap of faith towards digital transformation, are already late in this race. This is the first post in a two-part blog series sponsored by Sage Intacct that examines digital transformation for SMBs. SMBs’ recognition of and desire to transform their businesses for a digital future is real, but the vast majority are still unprepared or underprepared to act on it. And if you are not embracing it, should you? Employees increasingly expect to use more powerful, easy, consumer-like tools, and always on information access to get their jobs done more efficiently as well. What is Digital Transformation? A quick Google search will identify “digital transformation” as one top buzzword out there today. Banks which undertake this transformation can expect reduced costs ⦠As technology innovation accelerates, it can be difficult to keep up with new jargon—let alone figure out whether the latest bright and shiny buzzwords are relevant for your business. Executives in all industries are using digital advances such as analytics, mobility, social media and smart embedded devices as well as improving their use of traditional technologies ⦠Digital transformation is the process of using digital technologies to create new business processes, culture and customer experiences. Technological innovations leads to what we call technology disruptions. Digital transformation is just as relevant for SMBs. But before you move with your digital strategy, itâs important to understand what it really means and thus how to be able to benefit from it. The company improved delivery times, introduced a price matching program and transitioned to a data-driven marketing strategy to offer customers customized recommendations and assistance. This integration leads to fundamental changes in how the financial institutes operate and deliver value to their customers. However, the overselling of the concept, as Gartner highlights, is approaching the trough of disillusionment. Digital transformation goes beyond individual application areas like marketing, financials, HR or services. It is also about how these technological innovations are adopted and used. Digital transformation can be defined as the acceleration of business activities, processes, competencies and models to fully leverage the changes and opportunities of digital technologies and their impact in a strategic and prioritized way. The participants were: Gautam Dutta, Senior Director, Marketing, Siemens Digital Industries Software, Jigar Mehta, Head, Analytics & Financial Controller, Aditya Birla Health Insurance, Ramanathan ⦠Best Buy now focuses on advising customers, not just selling to them. In the simplest terms, DT is all about using various forms of digital technologies so it helps the customer (in this case the patient) lead a better life. Digital business transformation is the ultimate challenge in change management. But the bad news is that it’s still a fuzzy term for many—and most SMBs are uncertain as to how to tackle it. A flourishing digital culture is a tremendous asset to any digital marketing team, and can help facilitate everything from the ready acquisition of new digital skills amongst team members to the bettering of the digital environment in ⦠Note that digital speed is as much as 5 times faster than a traditional business. Digital transformation also means more than simply asking “How can we do the things we do today, only faster?” Instead, it means questioning “How do we need to adapt our business processes to keep pace with new market realities, and how does our technology strategy need to change to support this?”. Digital transformation: the importance of culture. Digital Transformation is a trend that can be materialized only when the organizations can rethink business processes. [ Get an inside look at 10 real-world digital transformations at today's leading organizations and find out what digital transformation really means. However, the execution is challenging. Regardless of size or sector, one of the most important changes a business will undergo is ensuring they have the choice to send their communications via paper or digital channels. Laurie McCabe brings more than 25 years of experience in the IT industry to her current role as Cofounder & Partner, SMB Group. The good news is that the percentage of SMBs say they’ve heard of digital transformation and understand what it means has grown from 33% in 2017 to 57% in 2019. Business success increasingly depends on putting technology to work to better support your business goals. By Mark Edmead, Lift in customer engagement (75%) â One of the first and most important benefits of Digital Transformation is that it leads to a great lift in ⦠The secret to digital success, CIOs disrupt IT operating models to align with digital business, Why companies struggle to cultivate digital strategies, Your digital initiative’s biggest test may be measuring its success, CEOs' lack of success metrics dampens digital prospects, Digital transformation: Why it's important to your organization, CMOs much more likely than CIOs to lead digital transformation, Top 9 challenges IT leaders will face in 2020, Top 5 strategic priorities for CIOs in 2020, 7 'crackpot' technologies that might transform IT, 8 technologies that will disrupt business in 2020, 7 questions CIOs should ask before taking a new job, 7 ways to position IT for success in 2020, 20 ways to kill your IT career (without knowing it), IT manager’s survival guide: 11 ways to thrive in the years ahead, CIO resumes: 6 best practices and 4 strong examples, 4 KPIs IT should ditch (and what to measure instead). Even if you wish to become a fast follower, if not the leader, then also pace is essential. Copyright © 2016 IDG Communications, Inc. Today, Best Buy is reaping the benefits, with adjusted earnings per share surging to a record $5.32 in fiscal 2019. The experience of customers is at the heart of digital. But transformation is not just about technology innovations and their disruption on the business. These are performance orientated benefits and show that digital transformation is proven to increase productivity and helps companies enhance customer experience. Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. Most of us are familiar with large enterprise digital transformation stories, such as Best Buy. It decentralises production by facilitating mobility and remote communication. Cultural transformation Redefining an organisationâs mindset and culture can be the most important element when it comes to digital transformation. Subscribe to access expert insight on business technology - in an ad-free environment. Importance of Digital Transformation â Digital Transformation â is becoming more than just industry buzzwords â it is the embodiment of industry-changing elements that impacts workforce efficiencies and ⦠To further clarify, the study asked decision-makers about their broad strategic priorities over the next year. Do these innovations brings value to the organization? Ideally IT spending is driven by the need to meet business requirements. Laurie’s nine years at Digital Equipment Corporation, including her last role as Director of Market and Competitive Intel, Sage Intacct300 Park Avenue, Suite 1400San Jose, CA 95110, Sales Inquiries: 877-437-7765Customer Support: 877-704-3700Partner Support: 866-201-9401, © Copyright 2019 to 2020 Sage Intacct, Inc. | Privacy Policy | Site Map | Home, © Copyright 2020 Sage Intacct, Inc. | Privacy Policy | Site Map. SMB Group defines “digital transformation” as: how businesses use digital technologies to create new or modify existing business processes, practices, models, culture, and customer experiences to meet changing business and market dynamics. By Ashley Friedlein November 4th 2013 10:59. Several years ago, many people thought that Best Buy could not survive against Amazon. Integration tops the list of complications, followed by difficulty in figuring out which solutions will work best. CIO Business leaders want IT to be focused on business results, innovation, and continuous improvement. A solid digital transformation strategy can help you prepare your business and for the digital era. There is a lot of talk at the moment about this process, where an organisation overhauls its capabilities in order to reach digital enlightenment. The Importance of Data in the Digital Transformation of the Water Industry . Naturally, digital transformation will bring success to you largely because of its speed and ⦠Several years ago, many people thought that Best Buy could not survive against Amazon. What challenges do you face? In fact, digital transformation is business transformation. Importance of digital transformation. Phillip Morris CTO scraps bimodal IT for consumer-centric model, Perfect strangers: How CIOs and CISOs can get along, Top 5 strategic priorities for IT leaders in 2021, Measuring IT project success post-COVID—and 4 leadership lessons learned, Rémy Cointreau ports SAP to the cloud to help sell more cognac, IT Resume Makeover: Setting the tone for IT leadership from the top, CIOs reshape IT culture in wake of pandemic, Businesses lack a streamlined approach to digital transformation, Why Microsoft is your best strategic partner for the future, Sponsored item title goes here as designed, CIOs, CMOs share tips for successful partnerships, 10 real-world digital transformations at today's leading organizations, An inside look at 10 real-world digital transformations at today's leading organizations, What is digital transformation? Digital transformation in the industry provides an opportunity to combine practices and ways of doing that result in new techniques, skills and sources of income. The Importance of Digital Transformation Technology has permeated in every aspect of our lives. Heather Taylor. Listed are a few points that state the importance of digital transformation: Enhanced customer experience; With increasing competition around, it is tough for ⦠Digital transformation is imperative for your companyâs success. In the next post, I’ll discuss how to start planning for and executing on a digital transformation strategy. Podcast Transcript. Here are some of its key benefits: It reduces costs as a result of time savings in processes. From business processes and models to business activities and each single activity of the organization. Another digital transformation success story comes from Nokia, a once dominant force in the world of mobile communications. 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