Going Digital is More than Simply Automating Business Processes

Digitally automating processes is good but it is not digital transformation image.

True Digital Transformation Requires Business Model Transformation

Times of crisis often challenge businesses to ambitiously rethink the norms and what can be achieved.  But for many enterprises, when it comes their digital journey, they are still in the mindset of thinking what they really need is a faster horse. 

Digital transformation is very different to digitization or digitalisation.  Digitalisation typically means the application of technology to automate business processes.  The optimisation and digitalization of a company’s existing processes does have a useful role in business, but often these processes are based upon yesterday's business models.  If existing processes are digitalised, with some minor improvements, organisations run the risk of only improving operating efficiency of their existing business model and not setting themselves up for the future.

According to World Economic Fortum research, 80% of executives think their existing business model are at risk of disruption, so now is the time for business leaders to go beyond digital process automation and think about using digital to drive business model transformation.

Digital business transformation is the application of technology & data to change the business model and create new value for all stakeholders.   

In digital business transformation, technology is but only one ingredient in the recipe of success.  Enterprises who start with the technology, are putting the horse before the cart.  Instead, organisations should start with their business strategy and work back from there, using technology as a tool to help achieve the business strategy. 

If you would like to discuss digital & your business model transformation, please contact us or drop us an e-mail.