Digital transformation is arguably the single most talked about business trend of the moment. You can’t talk to a senior-level executive these days without it coming up!
“90% of CEOs believe the digital economy will impact their industry, but less than 15% are executing a digital strategy.” – MIT Sloan and CapGemini
Despite this, many businesses have been slow to jump on the digital bandwagon. Digital transformation isn’t limited to Silicon Valley tech companies. It’s become an imperative for organizations of all sizes expecting to survive in the next decade. It’s a myth that digital transformation refers to startups. It’s come from new technology disrupting markets, many of which have been leveraged by startup companies. The evolution of the digital world has certainly opened the floodgates to new entrepreneurs and innovations. Uber, Airbnb, Dropbox, and more have all taken advantage of new technology to disrupt their respective industries.
What appears to be misunderstood, is that digital transformation is not about replacing the old with the new, the traditional with the digital. Digital transformation is about leveraging new technology to enhance every aspect of your business. Simply leveraging a new technology is only one part of this business trend.
It’s this misunderstanding that explains why some companies have been slow to think digital. It also answers the question…
Should Startups be concerned with Digital Transformation?
There are many reasons why digital transformation should not be considered as limited to large, traditional enterprises looking to answer the challenge from new competitors.
Firstly, startups by nature, are small and often run by a few highly motivated, efficient individuals. Digital tools are helping companies to improve their processes and overall operational efficiency.
“Over just the last month I’ve connected with three entrepreneurs who told me they rarely did any marketing for themselves or their small business.” – Brian Honigman, Entrepreneur
This might surprise you. Often startups are failing to leverage digital marketing technology to their advantage. According to Infusionsoft, nearly a fifth owners of small businesses have no plan to use any digital marketing in 2017. Of those who do, 49% manage their marketing on their own.
Considering the enormity of the evidence of value that digital marketing tools deliver, it’s surprising that such a high proportion of small businesses are not leveraging these platforms.
Digital transformation can enable businesses of any size to leverage digital marketing, smartly. With automated marketing tools, artificial intelligence, machine learning, social listening, content marketing, growth hacking…digital technology has opened up opportunities to converse with the customer in new ways, that offer immediate engagement, real-time analysis, at often, a low cost.
Startups need to think digital, to transform their marketing, increasing their reach.
“In the digital age, information and close collaboration are keys to delivering superior customer experience. Employees must not only have access to information quickly and easily but also be able to tap into shared knowledge in the organization. Technology has made this much easier to achieve today.” – Darric Hor, ASEAN Regional Director, BMC Software
The empowered customer is the boss. With the wealth of information at their fingertips, the customer is running the show. Digital transformation gives startups the power to deliver unique experiences for their customers.
CHANGE IS CONSTANT
Agility, the ability to move quickly and easily. This is the single most important characteristic of the most successful businesses of the moment.
Digital transformation, when done right, is not a single moment in your businesses’ story. Change is constant, and digital transformation is only successful when it enables you to monitor, identify, and adapt to trends.
Reacting faster than your competition is how you’ll maintain your edge. Startups are great at disrupting markets. Take Facebook, who changed how individuals communicate. This company’s success is largely down to its ability to keep evolving. Zuckerberg’s team are constantly searching for the next technology.
THE BOTTOM LINE
According to Capgemini Consulting, companies that become digital enterprises can look forward to a 26% increase in profitability, a 12% increase in valuation, and a 9% increase in revenue to asset ratio. Who wouldn’t be excited by this possibility?
For businesses of all sizes, digital transformation cannot be ignored. For startups, it’s all too easy to assume that simply disrupting the market once is enough. Learn early that change is constant and consider digital transformation at every turn.
ABOUT DIGITAL ENTERPRISE TRANSFORMATION ASSEMBLY
The Millennium Alliance is thrilled to present our biannual Digital Enterprise Transformation Assembly, put together by the industry, for the industry. Join us on June 22-23, at The Camby in Phoenix, AZ for a series of executive education roundtables, keynote presentations, collaborative think tanks, educational workshops, and networking sessions will offer industry-specific topics and trends to ensure your company sustains its competitive advantage.
The Digital Enterprise Transformation Assembly will bring together North America’s most prominent technology and business leaders from all major industries. CIOs know there is an explosion of information driving the digital enterprise. Understanding the convergence of mobile, social, and cloud is critical for organizations looking to create opportunities and stay ahead of the competition. It is this convergence that will be the foundation of the new digital world.
This is not just another “Digital IT” event. Spaces are reserved for the best in the business. Enquire about attendance here!
PAST DIGITAL ENTERPRISE TRANSFORMATION SPEAKERS INCLUDE
BP Group Chief Information Officer
Costco SVP, Chief Information Officer
Dreamworks Animation Chief Technology Officer
Ernst & Young Chief Technology Officer
Honeywell VP, Chief Information Officer
Jet Propulsion Laboratory Chief Technology Officer & Innovation Officer
Johnson & Johnson Chief Technology Officer
KPMG Global Chief Information Officer
Las Vegas Sands Corp. SVP & Global Chief Information Officer
McKesson EVP, Chief Information Officer & Chief Technology Officer
Merck Chief Technology Officer
MUFG Americas Chief Technology Officer
Panasonic Corporation President & Chief Information Officer
Rent-A-Center Chief Technology Officer
The Coca-Cola Company SVP, Chief Information Officer
USAA SVP, Chief Information Officer