Digital Transformation is no longer a trend, but a revolution. Digitizing yesterday's processes is necessary, but it is not a differentiation strategy. Companies need to build new business models and structure themselves for the future.
Companies like Uber, Facebook and Airbnb are examples of successful businesses in the digital age. But what do these companies have in common? All three structured disruptive business models to create opportunities where none existed. Their growth over the years is an example of how technology can help create jobs and develop the economy, even in a challenging business scenario.
According to Eric Duffaut, Chief Customer Officer (CCO) of Software AG, organizations that don't transform fast will die slowly, which he calls “digital darwinism”. To help companies in this transformation, Eric listed the five pillars for a successful digital transformation journey, during an event organized by Software AG, 'Roundtable: Challenges and opportunities for Digital Transformation in Brazil', recently held in São Paulo and which brought together CIOs and executives from different sectors. Check out:
1 – Create an experience for the customer above expectations: this must be the main objective of organizations; It is always necessary to keep in mind the need to put the consumer first, as the center of all company processes. With technology, everything becomes simpler – it is possible to respond and serve the customer in real time with exact information about their needs and their user journey, and with accurate results on all actions taken.
2 – Create value through real-time data: decisions must always be based on data; Big Data in real time makes it possible to carry out the analyzes that are fundamental for segmenting customers and aligning companies' actions to add value in a personalized way, depending on what each customer represents for the company.
3 – Transform processes and build a 21st century business architecture: the transformation of the technological architecture and of all the company's processes is the basis to support its digital strategy. Companies need modern and robust capabilities for integrating existing IT systems, on premise and/or in the cloud, as well as managing APIs to meet internal demands and their digital “ecosystem”. Add to this the power of real-time analytics, predictive decision-making and Artificial Intelligence, and your organization has a digital platform based on a 21st Century architecture to gain speed, intelligence and turn data into value.
4 – Merge the physical world with the digital: it is estimated that there will be more than 50 billion connected devices by 2020. The Internet of Things (IoT) will allow the emergence of new services and functionalities linked to existing products, and incorporating this technology will enable productivity, competitiveness and profitability gains . There are no limits to the potential of IoT.
5 – Reformulate the role of CIO to CDO: from head of systems to responsible for digitization, or simply Chief Digital Officer (CDO). There is no more room for simple IT administration. There are already around 20,000 CDOs on LinkedIn and the relevance of this change is not in the name of the position, but in the business leadership role, with direct reporting to the CEO and participation in the management committee of the companies, which reinforces the critical nature of the digital transformation.
Software is the engine of business innovation, delivering speed and scale. Companies from different segments are using software to create new services, products and new ways of operating, in order to lead their markets. For Eric, the transformation is a lot like the process a butterfly goes through. “The caterpillar closes in a cocoon, changes little by little and then a butterfly appears”, he explained. “And that's what companies need to do. Transform, create wings and take longer and more prosperous flights through technology, causing impacts that will literally change the world”, he added.
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