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Digital Transformation – Riding the Wave

Digital Transformation – Riding the Wave

Digital transformation is forcing IT to evolve

Today what we call digital has transformed businesses by improving connectivity, overall cost and operational efficiencies and bringing new ideas to the table from across the globe. This has had a significant impact on tools and techniques used by the organization to meet business goals. Not only does digital transformation change the way processes are implemented but also drives greater efficiencies in product/services development. The Digital transformation market is expected to double in size in the next five years. According to a markets and markets report, digital transformation which includes Cloud Computing, Big Data, Mobility, and Social Media is expected to almost triple in size from USD 148.04 billion in 2015 to USD 392.15 billion by 2021.

The digital wave has now forced IT departments in leading organizations transform their Digital operations to keep up with the change in tide.

In my earlier blog I wrote about the history behind the the current digital transformation wave. Let us broaden the scope here.

Broadening the Scope

Initially, the IT department served a few business needs and the role was limited to fewer business functions. This however has changed in recent times. They now serve business functions aligned to business goals. The influence of IT now has a reach in most departments that use Digital tools to deliver their work.

A leading telco for example used cutting edge Digital collaboration solutions to help Unilever, streamline 40 global service lines and create virtual-delivery organizations with team members around the world who meet via video conference.

Cost reduction and growth visibility are just a few of the benefits of incorporating IT techniques and tools in an organization. This broader scope has transformed it into a crucial department in an organization.

Organizations that have emphasized focus on integrating their systems with Digital tools and applications usually depend on several third party applications for data to flow from one tool to another and provide a holistic picture.

IT departments are leveraging digital to transform business

IT departments that focus on providing digital services to other departments invest efforts on being able to identify, procure and implement services that are closest to business needs. Primary trends in this evolution journey are agile methodologies, DevOps and tenancy models. This evolution has helped bring a minimum viable product closer to customers and ensure scalability and continuous workflow in a shorter duration of time.

The role is not just limited to managing key tools but also to be able to drive business decisions and actions.

With the focus shifting to Digital, IT departments now have to make informed decisions to ensure efficient product delivery that suit an organization’s needs. Analysis of risk, cost and capabilities are prime factors that are taken into consideration while making these decisions.

Acquiring the Right Skills

Digital transformation also calls for new skills, approaches and mindsets that are not found among the existing IT workforce. Small organizations and startups have found it easier to acquire and use these skills. This has urged larger organizations to transition their IT departments to acquire skills such as Agile, Big Data, Internet of Things and DevOps.

CSS Corp’s Point of View

The role of IT has also gained importance on the strategic front. Several firms have now incorporated IT to differentiate services and operations to ensure better delivery. Major investments in Big Data by organizations across industries is a clear indication that the role of IT in insights generation and continuous improvement is significant.

Access to the internet and smartphones has also played a vital role in this transition. An article in McKinsey stated that going digital provides the ability to attract new customers, improve cross-selling, and reduce leakage. This can help increase profits and customer satisfaction by 15 and 30 percent respectively.

The journey of IT evolution through digitization is bringing highs, lows and surprises for all. Not only is the scope of IT broadening but it is also bringing about a new set of challenges and skills to market. Inward and outward needs both have the potential to be met by the new disciplines and approaches that digitization brings. This provides a better mode for everyone to grow, learn and deliver business goals more efficiently.

CSS Corp’s digital transformation solution is centered on driving Customer eXperience, improving operational efficiencies, creating specialization and in turn helps our customers with revenue creation. Visit CSS Corp Digital to learn more about how we do it.

Rahul Jain

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