Recession to drive demand for digitalisation

Most organizations achieve less than one-third of the impact they expected from recent digital investments. Now, organizations are under even more stress to make consequential business decisions not only at a faster pace but also in business areas that may have no previous experience with or knowledge of digital tech or transformations. The biggest shift was to embrace digital completely and redefine the customer experience as a whole.

Digital transformation is the holistic process by which an organization redefines and betters itself using the digital technologies which metamorphosize business and society at large. Digital transformation is a continuous evolution. Too commonly, organizations see digital transformation goals as an end point.

The digital transformation journey encompasses much more than simply rolling out apps or redesigning a website. It’s about fundamentally redefining an organization’s business operations and customer experience through digital technologies and creating a company that’s actually stronger and more agile than it previously was.

There is a slowing down in demand. One reason is because of the supply chain issues a lot of enterprises are prioritising buying hardware and delaying the cloud buys. If there is a slowdown in the economy, then digitalisation will happen faster, and there will be a shift from capex to opex and moving systems to the cloud.

Analysts expect investments in digital transformation to reach $2.3 trillion globally by 2023, capturing the majority share of worldwide information and communications tech expenditures. The benefits of these digital transformation initiatives will be- better supply chain management, a greater ability to meet customer needs, more secure customer data management, and stronger profitability which leads to higher stock prices. However, it’s an expensive and risky undertaking to reinvent the way an enterprise operates.

The digital transformation strategy clarifies the objectives, stakeholders, and business impact of an initiative. It also ensures the process is cohesive, effectively implemented, and properly measured. The most effective digital transformation teams operate with a spirit of collaboration and transparency. They work closely with other teams across the organization to ensure everyone understands what is happening and why it’s happening.

Digital transformation strategy is your high-level plan to execute a complex digital transformation initiative. Without the right roadmap, you aren’t actually transforming your business. Instead, you’re just implementing technology.

S Mohini Ratna, Editor, VARINDIA