Business Digital Transformation offers New Opportunities
Industry historically has run on the concept of “If it ain’t broke, don’t fix it.” Companies that had found success with a process or technology were content to maintain their status quo, and it wasn’t until they started falling behind their competition that they considered making a change. Business digital transformation changed that, as organizations increasingly embraced technology to push ahead of their competitors and are more proactive in the decisions that impact their business.
In the first iteration of digital transformation, companies looked beyond the status quo to find technologies that would help drive their business forward. In the process, it became evident that digital transformation was not one-size-fits-all. Rather, it included different drivers, different technologies, different processes and different mindsets for each market, each industry and each company.
In the second iteration of digital transformation—digital transformation 2.0—organizations are expanding their efforts to create even more opportunities and address new challenges. Those drivers, technologies, processes, and mindsets that drove digital transformation 1.0 have evolved. As such, so must the organization’s tools to address those changes.
Instead of trying to retrofit new business opportunities into existing architectural constructs, the time is now for IT leaders to reimagine their networks to meet new business requirements and evolving customer expectations.
The Drivers for Transformation – Business Digital Transformation
For every organization of every size, the initial transformation to a digital-centric company was not simply a necessary move to keep up with the competition; it was critical to ensuring their business runs most efficiently, ensuring employees have what they need to do their jobs with the goal of not just meeting but exceeding customer expectations.
Companies of all sizes understand the impact of digital transformation and are investing major dollars to implement or expand their digital transformation initiatives. By the end of 2019, spending on business digital transformation initiatives is predicted to reach $1.7 trillion worldwide.1
Indeed, digital transformation has impacted every facet of business, starting with higher productivity. At a macro level, digital transformation is a driver in an expected increase in global labor productivity, which has hovered at less than 1 percent in the wake of the 2008 recession. 2 Of the expected increase to 2 percent, more than half will be derived from digital transformation.
As part of that, IDC predicts that by 2020, 25 percent of Global 2000 companies will have developed digital training programs and digital cooperatives to better compete for new employees and retain current ones.
CIOs in 11 of the 15 industries that took part in a recent Gartner survey ranked digital business digital transformation among their top three business priorities for 2018.