Digital Transformation – Now or Never
First part of a blog series with focus on Digital Transformation & Microsoft Dynamics 365
Digital Transformation is a word that we see everywhere these days. And not surprisingly. Digital winners have 3 things in common:
- They have higher revenue
- They are more profitable
- They are more valuable
A US study from 2016 among 340+ enterprises, which compares data platform maturity with business performance, argues that the organizations that are most mature in their digital transformation journey generated an average of USD 100 million more in operating income each year than those who fall behind.
Likewise, a study with over 400 global companies done by MIT identified 3 strong key points:
- Companies with a strong digital profile derive 9 % more revenue from their physical assets
- They are 26 % more profitable
- They get 12 % higher market valuation
Furthermore, another study from MIT Sloan Management shows that 63% of executives believe their technological pace is too slow in order to keep up with the pace in the organization.
All of these studies indicate that change is required and that companies need to grasp the meaning of navigating in the digital jungle on a daily basis. Essentially, they need to understand how they can gain digital speed and improve customer experience, innovate product development and lastly how to tap into new markets with new and improved business models.
The big question is HOW to approach digital transformation in order to tap into the massive opportunity space. We already know that this is not easy.
The world is changing faster than ever before.
What is remarkable about this ‘revolution’ is the pace at which change is happening. For example:
- Customers are engaging in new ways and demonstrating completely new behaviors.
- New business models are arising in ways that, at first glance, may seem random
- Product innovation is happening with an ease that is enviable
- The traditional definition of an organization, the notion of mobilizing a network of human resources and capabilities to pull in the same direction, is disappearing as companies are forced to adapt to the digital world and employees to new ways of working
Development is happening at an exponential pace and this will naturally change the way companies function. This implies new governance models, new decision-making bodies, a need for new competencies, test of new technology development models, and a need to join partnership in areas far beyond what companies are used to.
To navigate in the era of digital transformation, companies need to understand both the motions and the key drivers that enable them to respond to the digitization of our society and our businesses. Consequently, they can learn how to be able to adapt to new business models and new ways of strategizing.
We’ll come back to that in a later blog post.
Digital Transformation Partner of the Year – Engaging Customers
AlfaPeople Nordic is awarded Digital Transformation partner of the Year 2016 – Engaging Customers and Cloud CRM Partner of the year 2016. We strive to make our customers succeed with Digital Transformation, customer engagement and Microsoft Dynamics 365.
Through a series of blog posts we will put focus on these two keywords: Digital Transformation and Microsoft Dynamics 365. We will put spotlight on what companies are doing to move forward on the digital maturity curve and how companies are approaching the many challenges involved. The intention is to inspire, inform and getting more companies ready for the many challenges ahead, where speed of change is inevitable.
Would you like to know more? Reach out to us.