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Go digital or go home. Companies must undergo Digital Transformation to not only support strategy and reach customers, but also modernize and achieve excellence in their internal operations and processes in order to prosper in the Digital Age. Digital Maturity is quickly becoming mandatory.
The majority of businesses are unable to plan their transition to Digital Maturity. There are, however, organizations that are Digitally Mature or fast advancing in this direction. According to research on the strategies of such companies, Digitally Mature enterprises use the 5 tactics stated below to gain leadership in this industry:
1. Digital Organization
2. Digital Methodology
3. Digital Experimentation
4. Digital Talent
5. Digital Management
These 5 essential principles form the foundation of the Digital Maturity Strategy. Let us elaborate a little on some of these principles.
Conventional Organizational Structures consisting of functional silos are inefficient in markets that are dynamic and constantly changing. An innovative approach to organizational structures has resulted in the creation of cross-functional team structures. Customary command and control systems based on functional silos restrict the market agility demanded by the current environment.
A research survey classified the Digital Maturity of businesses as early-stage, developing, and maturing organizations. Nearly 60% of early-stage respondents viewed their firms’ management structure and procedures as a hindrance to engaging in Digital business successfully. In Digitally Maturing organizations, on the other hand, 80% of respondents stated that their executives possessed the necessary knowledge and skills to lead the organization’s Digital Strategy.
Effective Digital Strategies are not limited to the application of technology to become more digital; rather, they are designed to find possibilities with the biggest commercial effect.
Consistently, research demonstrates that Strategy is the most potent differentiator for Digitally Maturing firms. Digital Strategies outline how the firm conducts business in light of the market shifts brought about by new Digital technology.
In a poll, 40% of the respondents stated that Digital Strategy and Innovation needed development in their organization in order for the organization to raise its level of Digital Maturity. Digitally Mature organizations (80% of them) had or were expected to have a well-defined and cohesive Strategy, compared to 19% of Early-stage companies, according to a study. According to research, Digitally Mature firms are 2 times as likely to strategize for at least a 5 year-term.
Successfully implementing Digital Strategy requires a focus on Organizational Change and the development of adaptability to rapidly changing Digital environments.
Almost every company engages in technological experimentation. However, the scope and size of tests may not always provide results with enterprise-wide implications. Digitally Mature organizations are able to expand Digital Experiments.
The key to effective experimentation is conceiving of trials for pressing business challenges that will drive enterprise-wide innovation, followed by the execution of smaller experiments that can be scaled up, if successful.
Early-stage corporations are 2.5 times less capable of undertaking small experiments and scaling enterprise-wide Innovation than Digitally Maturing enterprises. The capability to scale up modest trials is bolstered by an attitude of openness toward failure and the capacity to learn from it.
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Digital Transformation is being embraced by organizations of all sizes across most industries. In the Digital Age today, technology creates new opportunities and fundamentally transforms businesses in all aspects — operations, business models, strategies. It not only enables the business, but also drives its growth and can be a source of Competitive Advantage.
For many industries, COVID-19 has accelerated the timeline for Digital Transformation Programs by multiple years. Digital Transformation has become a necessity. Now, to survive in the Low Touch Economy — characterized by social distancing and a minimization of in-person activities — organizations must go digital. This includes offering digital solutions for both employees (e.g. Remote Work, Virtual Teams, Enterprise Cloud, etc.) and customers (e.g. E-commerce, Social Media, Mobile Apps, etc.).
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