“Digital customer experiences are only the shining faces of a digital business. Those pretty faces quickly lose their luster unless you’ve also transformed your business operations to make them better every single day.” — Forrester
In other words, front-end success depends on back-end support — and that support is increasingly based on a digital infrastructure. Forrester calls this a strategy of “digital operational excellence” and points out that 80% of a company’s digital transformation should be directed to this purpose.
Digitization of products, services, and business processes allows disruptive players to deliver the same value a traditional competitor provides —and even augment it— without having to reproduce the conventional value chain.
In fact, that is the objective of digital disruption: to provide superior value to the end customer — either a consumer or another business — while avoiding the capital investments, regulatory requirements, and other impediments of “encumbered incumbents.”
Lead from the Top Down: Given the magnitude of digital transformation, only top-down leadership will ensure that new strategic directions are cultivated throughout the organization and the right culture of innovation is created.
Create the Workforce of the Future: Digital business transformation requires a next-generation workforce that is digitally savvy, creative, and accustomed to constant change. Collaboration solutions and the sharing of information — in real time and across fragmented silos — are critical.
Merge Business Processes and Technology: By knocking down silos and integrating IT and operational technology (OT), organizations can drive real-time agility and deliver new levels of business and operational efficiency as they connect everything, embrace analytics, and secure their technology and operations.
Ideate and Innovate Fast: Agile IT, automated business processes, enhanced collaboration and decision-making, real-time insight — all of these factors combine to create fast innovation. The digital business ideates quickly as creative, connected employees drive rapid prototypes and speed time to market — and respond to ever-changing opportunities, successes, and failures.
Cultivate the Partner Ecosystem: Organizations will need to rethink their partner ecosystems as they seek unique value that will create new disruption. Cultivating the right network of vendors, partners, and contract workers will be critical to smoother and more impactful digital business transformation.