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Digital Transformation: Where do you Start?

November 24, 2016 / Digital Transformation,

In the previous blog post, we covered What is Digital Transformation and why does it matter to you?

Today, we will look at which business area(s) will have the maximum impact and returns for your Digital Transformation program.

Once you decide to leverage Digital Technologies to transform your business, it can be quite overwhelming at first. Since most organizations have a plethora of systems, applications and processes in place, it becomes that much more difficult to decide where to start with your digital business transformation journey. Also, many organizations may have already gone through series of such so-called transformational initiatives, thus it becomes difficult to get a buy-in from relevant stakeholders to invest in yet another transformation program.

Here is a POV (Point of View) on where you can start, based on your industry domain and the impact it has on the business.

If you are into Retail Banking then it would make sense to transform your Customer Acquisition, Customer Servicing and Mobile Banking operations. On the other hand, if you are a Manufacturing company, it would make sense to optimize your supply chain, vendor management and purchase operations.

Thus depending on your industry domain and business priorities, you can decide on the most strategic area of the business that can benefit from Digitization. One could argue that you can take a big-bang approach where all business functions, processes, systems and applications should simultaneously be digitized to make the most of this transformation program.

While theoretically, this big-bang approach makes sense, but the risk of failure of such a large transformation program is very high. Add to that the investment required in terms of resources, efforts, technology, etc. can even make it a non-starter.

Here is an infographic which illustrates high-impact use cases based on various industry domains and business functions.

We have taken six leading industries and listed use case scenarios for each business function based on probable challenges and trends. If you analyze the above heat-map, Manufacturing is the only industry which focusses on business functions other than Sales, Marketing & Operations. That is because of the nature of its business.

Businesses tend to give the highest priority to the revenue generating units followed by business sustenance units. That explains the above trend.

The above heat-map is an indicative list to get started with your digital business transformation program, though different companies may have these higher or lower on their list of priorities. You could create your own heat-map based on your immediate and long-term priorities.

Finally, the question we need to ask ourselves is, How can we radically transform a specific area of business using Digital Technologies? And if that can dovetail into other areas of the business, it would trigger a chain effect across the organization.

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