Digital Transformation

The business moved to the high-speed phase. To be effective, you have to run fast, and to be a leader you have to ride at hyper-speed. Former models and business processes are becoming ineffective, old methods of communication do not work. Models of consumption of products and services are changing. Communication rules the world. We present to your attention a note about what digital transformation is and why it is necessary for business.

Today, no one will talk about the prerequisites of the world digital revolution. Because it is already happening. Today, almost every person uses gadgets and modern digital services, beginning with social networks, television and entertainment, ending with state services in one way or another. It would be strange to assume that in this new digital economy, business will be able to work on the old model, with traditional processes and with the same efficiency. The driver of changes is the modern consumer and his changes in the preferences and form of consumption of goods and services.

Digitalization or digital transformation – this trend is already firmly entrenched in the programs of the largest panel discussions at economic forums and profile conferences. Of course, sometimes it succumbs to blockade, but in fact is a more important fundamental topic today for business development. The potential of this market is simply enormous. Today, according to our estimates, more than 60% of the world’s largest corporations are already working on their digital transformation strategy, in addition, over the past year, we have seen a large increase in the number of requests to us among Russian companies.

The most beautiful thing is that the main driver of changes is the modern consumer – business is changing under the influence of new factors. That is why digital transformation is not a service of consulting companies, but an inevitable process that is experienced by the world business, adapting to the new conditions and preferences of the society of the digital economy.

In general, digital transformation is not so much about technology as about changing thinking in the new conditions of a new digital economy.

The methodology for developing a digital transformation strategy is built on several modules that are present in the business of every modern company:

Customer Centricity

It is for understanding your customer in business that you need to implement tools of Omni channel, analytics, variability, scoring, adaptivity and forecasting. Only with this approach can be effective tomorrow, respond to tectonic and reactive changes in the market. The client today, where he is on time, conveniently, comfortably and quickly provide a product or service. Accordingly, business needs all the tools and the ability to adapt to the rapidly changing culture of consumption and communication.

If in the traditional model of communications the brand used communication channels as a broadcasting tool for broad masses of the audience, today the brand becomes part of the consumer communication system, the content provider, an interactive element.

Partner Centricity

Digital transformation is based on the principle of infrastructure development as a platform or an entire ecosystem of the company. An important component in this concept is the principle of open API and flexible integration. This allows the business to find new non-standard breakthrough solutions in the development of its products and services through collaborations and integrations with other services and partner companies. Surely you have already noticed how quickly the number of such projects in the world is growing rapidly – from the banking sector and insurance to medicine and retail. Today, it becomes not effective and long to develop at its base any heavy service, it is enough to have the opportunity of integration and the strategy of the joint product.

Digital partnership is becoming one of the important factors of scaling, which allows companies regardless of the geography of their presence to conduct business anywhere in the world. For example, the introduction of artificial intelligence and neural networks in insurance – when the assessment of damage occurs completely remotely – this will allow large players to consolidate regional markets on the basis of a unified service system without borders and the need to visit the office.

Data Governance

Big Data is no longer just a trend, it is a working tool, without which it is impossible to imagine the work of a modern company. Based on the data, today models customer behavior, predicts demand, shapes preferences and even adapts products and services.

The major stages in the evolution of data are the three main strategic periods in the development of the company’s IT infrastructure: data collection and sorting, data analysis and evaluation for decision making, data use and implementation in the company’s day-to-day operations. All three stages are labor-intensive and important, so they can take some time, which is important to consider when forming a strategy for digital transformation.

Already today Big Data, artificial intelligence, neural networks are part of the services of financial companies, retail and medicine.

Research and Development

The word “innovations” today sounds from everywhere – everyone wants a “magic pill” or a ready-made successful case that solves all problems, but few people think about the nature of these innovations. Thanks to digital technology, we are experiencing a transition from a pre-design model to a model of constant experimentation. If earlier the product was the result of a large preliminary marketing research and expert formulation, today the possibilities of digital technologies and the speed of changes in the markets make the business constantly try and test its solutions. Thanks to modern methods of project management and analytics, we can form innovation and research centers in companies, the essence of which is the regular work on finding and testing new directions for business development, products and solutions.

Value

Using digital will transform the value of your product to the customer. Everyone sees how the way of consumption of services varies – beginning from banking and retail, finishing with the Internet of things (IoT). It becomes fundamentally important for a client to purchase products and services fully and remotely, to receive operational support around the clock and without visiting offices.

Together with this, the economic model, the business structure and the scale model are changing. Business is now available new opportunities in rapid development without regional expansion in the form of construction of offices and points of sale.

For a modern customer, digital becomes a value.

Digital Culture

The main obstacle to the successful transformation of business is the team’s unavailability – lack of motivation and inadequate expertise. In the process of transformations in business fundamental things change: the approach to conducting activity changes – companies move from the projected marketing model to the client-centric system, there is a need for continuous development, education and professional development of employees. Along with new technologies, the company also receives new positions, for example, Chief Digital Officer, Chief Data Officer, Data Scientist, Director of Transformation and others. The structure in the companies is changing – there are whole new divisions, for example, the Transformation Team, which includes specialists from different spheres of the company’s activity.

The basis of the digital transformation is the developed strategy, the implementation of which affects the development of these six areas.

Digital transformation is not a service of consulting companies. This is the inevitable process that the global business is going through to adapt to the new realities of the digital economy.

Finally, the answer to the main question: digital-transformation is a meaningful strategic process of changing business in the face of the challenges of the new digital economy. The set of transformations through the introduction of innovative culture in the company, the adaptation of business models, the widespread use of data, customer-centricity and value management.

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