While digital transformation may feel like a loaded term, it’s clear that the business mandates that come with it – to rethink old operating models, experiment more, become more agile in your ability to respond to customers and rivals – aren’t going away. For that reason, leaders should start planning their transformation projects now, even if they don’t know exactly how they will turn out.
The best way to understand the digital transformation concept is to think about how technology advances have changed customer expectations and behaviors. People now expect to be able to do their jobs, buy products and services, and live their lives at the speed of light, on any device, with all supporting information and personalized content close at hand.
Technological innovations have also enabled companies to make better use of resources and improve their agility. For example, Amazon’s digital transformation enabled it to launch AWS by using its existing capabilities in storage and computing to provide a service that is now an integral part of the company’s revenue.
Successful digital transformation projects involve implementing new technologies with an eye toward sustainability. For instance, when deploying cloud systems for data management, IT leaders must be sure they can bridge data silos that are created by multiple clouds and that these cloud systems will work seamlessly with legacy systems the enterprise chooses to retain. They must also consider how to manage security risks that are heightened by the massive amount of data being moved and shared across internal and external environments, particularly in regulated industries.