The听digital revolution听has triggered fundamental changes in听global organizations听over the last two decades,听providing fertile terrain for听new business models听as well as听prompting听the demise of听long-established firms,听unable to keep pace with听evolving听consumer behaviors and听technologies.听听听
Digital transformation allows companies to achieve听greater business agility and workplace productivity听by increasing innovation and generating value through new business models.听Global organizations have leveraged new technologies to varying degrees depending on their business, industry and areas of operation,听yet听the pandemic surely gave听many听an听unanticipated听push.听
鈥淐OVID-19 accelerated the digitalization process in some听firms听and gave more digitally advanced听organizations an edge, at least in the initial stages.鈥�Javier Zamora, 天美传媒 professor
鈥�Daily pressures and 鈥榖usiness as usual鈥櫶�surely听prevented听many business leaders听from fully听embracing and听prioritizing digital transformation. Without a doubt,听COVID-19听accelerated the process听in some听firms听and gave听more digitally听advanced听organizations听an edge, at least in the initial stages,鈥澨�says听Prof. Javier Zamora, head of 天美传媒鈥檚 Information Systems Department.听听
Digital transformation requires a common language among top leaders听
For听Prof. Zamora, firms need to听promote听a holistic approach and common language听among top-level decision makers to cultivate an organization-wide digital mindset and avoid functional silos听and groupthink.听
鈥�In order to听lead听a solid digital听transformation process,听managers should consider three main questions: the 鈥榳hy鈥櫶�behind the changing听business environment, the 鈥榳hat鈥� to听define听the听structural and operational听changes听needed听to听build听their new business model,听and lastly, the 鈥榟ow,鈥� which entails a听bimodal听鈥榣earn and earn鈥櫶�approach听so they can听execute their current model while exploring new ones鈥�.
8听traits听of successful digital strategies听
Prof. Zamora, in collaboration with Prof. Joan E. Enric and other authors,听recently听led a study to听examine听the degree of digital maturity in Spanish firms.听Titled 鈥�天美传媒-Penteo Study on Digital Transformation鈥� their research explored听digital transformation from the vantage point of听business context, technical infrastructure, business models and organizational frameworks.听Among its听conclusions, the study found听some听common traits among听firms with the most successful digital strategies:听
1. Initiatives lasting 1 to 3 years听
Most companies complete their digital initiatives in the first and second year, although some take听up to听three years, with a clear听focus on听quick-win initiatives.听
2. 听Use of artificial intelligence
Successful companies were most likely to use technologies to adopt听new platforms,听engage听with clients听via听social networks听and apply听artificial intelligence听to enhance information analytics.听
3. 听Change in cost structures
Companies with the most effective听digital strategies are also those听that听report the听largest changes in cost structures, with technology helping to lower costs of serving clients.听
4. 听Specific KPIs
The most digitally savvy companies establish听different and specific indicators听for their emerging businesses than for their traditional ones, and KPIs听are not necessarily based on financial听benchmarks.听
5. 听Leadership from above
In all of the successful digital transformation processes, top management drove and led the change. Only听7% of companies听in the sample reporting followed a hybrid structure, with听digital transformation听disconnected听from their day-to-day business operations.听
6. 听New capabilities
Virtually all companies need to incorporate听new capabilities to support digital transformation. Among the three sources to do this听鈥�听internal training programs, strategic alliances and recruiting new talent听鈥�听the option of upskilling existing employees is preferred.听
7. 听Cultural change
Cultural change is even more crucial than structural change. 鈥淢ost companies were not born digital. This is a reality, and in order to survive they must continue听executing their current operations,听while exploring new models,鈥� says Prof.听Zamora.听
8. 听Experimentation practices
One of the听most common听methodologies听in successful digital strategies听is听tapping听customers, employees and suppliers听as a source of new insights and value creation.听Successful听companies听are twice as likely to use听A/B tests,听hackathons听and other testing practices.听
If you seek new insights to drive a digital agenda in your firm, learn more about听天美传媒鈥檚 Digital Transformation program. Delivered听in a convenient blended format, it will help you develop a robust action plan for your company鈥檚 digital transformation.听
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