Companies are now progressively launching more and more digital enterprises in order to grow. There are many success stories related to business who invested more in digitalisation. As such, this trend is gaining more attention now.
Last year, around 2,600 Chief Information Officers (CIOs) surveyed said they are currently allocating 18 per cent of their budgets to digital transformation. That is expected to be raised to 28 per cent by the end of 2018.
“Digital transformation usually connotes substantial tasks and consequences,” says Andy Rowsell-Jones, Vice President and Research Director of Gartner's CIO & Executive Leadership Research team. On top of such developments, companies are renovating their entire business models, allowing for a little extra from their IT budgets to hook digital disruptors, gradually.
Indisputably, the latest research at Gartner revealed that 95 per cent of CIOs believe their jobs will be altered due to this massive digitalisation. The respondents also consider that the two major transformations in their roles will be the requirement to develop themselves as an leaders, followed by augmented duties. Indeed, it is likely that artificial intelligence (AI) will meaningfully change how CIOs do their jobs in the near future.
In the big picture, the CIO's role should progress with the rise of digital business and progressive analytics. Even though delivery is again a crucial part of the job, much greater stress is being placed on attaining a far broader set of business objectives. Those areas mainly comprise of innovation and talent management.
A study conducted by Forrester Consulting established that the core reasons for digital transformation are cost-effectiveness, consumer satisfaction, and efficiency. The most important element according to the respondents was the refining of the customer experience.
Technological inventions usually result in what we commonly call technology commotions. This transformation is not only related to technological modernisations, but to disruption of the industry as well. Such commotions also centre around how such technological innovations are espoused and utilised. This takes us to more questions like:
- Do these inventions carries significance or bring value to the business?
- Can these be effortlessly embraced, or will the organisation go through hitches while incorporating this latest technology?
This brings us to yet another crucial consideration: consumer behaviour. It is imperative to comprehend consumer demands and hopes. On top of that, organisations have the deal with outside influences like laws, economic shifts, and competition.
We picked five phenomenal digital business transformations which successfully set their benchmark, and as such became an illustration for all.
Domino’s Pizza magnificently launched and integrated the technology to let customers place orders from any computer, laptop, or smart device with internet access. They can enter their orders into the Domino’s dedicated business website, at which point they can tweet and text emojis. As per Domino’s CIO Kevin Vasconi, “Choice drives our whole mobile and digital platform. Millennials love that.” Domino's next venture? They are working to get Dom, which would be its voice-activated virtual assistant, having the ability to recognise and assist all of the different methods people could order food through speech.
Target's digital expedition faced an upsetting breach of data back in 2013. Being the leading store, they were continuously formulating to get a bump-start to its digital business transformation. For that, the retailer hired CIO Mike McNamara from Tesco, where he previously led more than a few digital initiatives for a similar U.K. based grocery chain. McNamara spent most of 2016 insourcing the software development model and organising a compliant software development containing the latest supply-chain applications.
Similar to Target, Wal-Mart had also been modifying its software stack. Built on OpenStack, Wal-Mart's latest e-commerce platform is intended to support the retailer for participating effectively with the OpenStack cloud platform. In reality, open source makes up an enormous portion of Wal-Mart's digital transformation. Earlier this year, the Wal-Mart group launched OneOps, a platform that allows programmers to test and switch amongst different cloud providers, a vital advantage since companies hold hybrid cloud models.
Capital One has constructed a massive banking and credit card business - all thanks to their concrete help desk. Their mobile banking app was among the first ones to implement Apple's TouchID biometric software. In the year 2016, Capital One was the first bank to enable and introduce voice-activated financial service dealings through Alexa, Amazon’s virtual assistant. At this time, CIO Rob Alexander is supervising a major modification in order to help to get quicker software creation. The experts claim that winners in the banking industry are going to be those who can identify technology categorically aimed at playing a principal role in how their customers would like to do banking in the future.
Even though Subway’s digital transformation is in its early stages, CIO Carman Wenkoff is all set to leave a remarkable impact, leaving others behind. When channel-surfing on my Spectrum TV the other day, I came across a news story saying that Subway has lately employed over 150 technology, marketing, and operational professionals to support the business’s mobile app, as well as to restructure the stores for the future with self-service booths and various other technologies.
The Bottom Line
Organisations have to address the shifting industry’s landscapes. In an ideal world, IT expenses are primarily driven by the preconditions to meet business necessities. Business leaders now want IT departments to shift their emphasis to business outcomes, innovation, and continuous development. Digital transformation could also be defined as a step up in procedures, capabilities, and models to downright influence the modifications and openings of all digital technologies, as well as their impact in a calculated and prioritised method.
In actual fact, digital transformation is mainly business transformation. A number of people choose to use the terminology as digital business transformation, which is much more apt when it comes to catering the business aspect of this transformation. However, these digital business transformations are swayed and motivated by technological revolution, consumer behaviour, market demand, and other external ecological aspects.
Chris Albert, IT & Security Specialist, Charter Spectrum
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