The Digital Transformation:
Are You Ready – And Able?
The digital economy is
being called the next economic revolution, as it has the potential to drive $90
trillion in gross world product by 2020 according a report from Bain
& Company. As with any evolutionary surge like this, there is a
double-edged sword, where there are opportunities and, of course, challenges.
This is especially true for
CIOs and IT departments, as they are being called into higher levels of
service, and for a digital transformation to succeed, they must become the
transformative leaders. As a CIO from
Hewlett-Packard says, “It’s
a very cool time to be a CIO. We’ve moved from the back office to the front
lines.”
CIOs and IT are back in charge
This is a bit of switch
from past trends, where business units often had their own IT budgets and could
go off and acquire a software-as-a-solution (SaaS) application to run a
departmental process. But this no longer will work in the digital economy.
Business departments now expect IT to lead the way in fully digitizing their
enterprises. In fact, according Crisp Research, only 12% of
respondents in a recent survey consider their business departments to be a
driving force in digital transformation, while 69% think IT should lead the
charge.
These are prime conditions
for allowing CIOs and IT to take over more important strategic and operative
roles. In fact, two-thirds of respondents in the Crisp study think of IT as
innovators, strategists, and implementers.
It’s time for IT to step up
and build a strong digital core that unifies and interconnects organizations
internally and externally. The question is: Are CIOs ready to lead this charge?
Can they deliver on the value that the digital economy promises? For many,
maybe soon, and for others . . . well, not quite yet.
Ready, but not quite yet able?
While this might be an
exciting time for companies to capitalize on the digital economy, a digital
transformation may not be an easy one. A 2015 report from the
Economist Intelligence Unit says that 60% of senior-level executives believe
that failing to adapt to hyperconnectivity – the interconnections between
people, organizations, and objects – is the biggest challenge they face.
Inertia and complacency are driving these executives to recognize that there is
a deep need for fundamental organizational change.
When top executives were
asked to rank their digital maturity against potential digitization
opportunities in a study by strategy
consultancy Roland Berger, there were significant gaps between these two
qualifiers. In fact, depending on the industry segment, there was a 12% to 28%
gap between maturity and opportunity. The largest gap (28%) was in energy
systems, with a 36% ranking of digital maturity and a 64% ranking of
opportunities.
The above report also noted
that the digital transformation could have an especially strong or even
disruptive impact on industries such as automotive and logistics. But to take
advantage of what the report says is potentially a $400 billion opportunity by
2025 for these industries, companies would need to expand their information and
communications technology (ICT) by 17% on average. While this kind of
investment may seem minimal, it can be monumental and quite limiting in
companies that still have constrained IT budgets.
Readiness is one thing, but
ability is clearly another, which is highlighted by Crisp Research. Even though
93% of respondents in the Crisp study consider themselves well prepared for the
coming digital era, only 39% think of themselves as avant-garde, or as this
study calls them, profiteers or innovators. Another revealing
fact is that only 42% of the respondents have been involved in successful
digital projects. Without a doubt, many CIOs and their IT departments have some
catching up to do across the board.
Where to start? Get a next-generation IT platform
To fully take advantage of
the opportunities of the digital economy, companies will need a next-generation
IT platform upon which they can build a digital core. This platform will need
modern technology, such as the SAP HANA Cloud Platform and the SAP S/4HANA
suite.
Together, this technology
provides a business foundation that is essential for building an end-to-end
digital business. It can help organizations combine the opportunities of the
digital economy with the process simplification and capabilities necessary to achieve
true, sustainable digital transformation at a time where there are billions of
connected devices.
With the SAP S/4HANA suite,
companies get instant insight coupled with contextual information and
personalized experiences. And with scalable, real-time, predictive, and
simulation capabilities, they can unlock the power of data to become a business
that is primed for success in the digital economy.
It’s technology like this
that will make transformation possible.
Clearly, there are abundant
opportunities for companies around the globe that are willing to embrace
digital transformation. And it’s equally apparent that wise investments in the
digital core will provide a concrete foundation to best capture these
opportunities.
Pesquisa, Divulgação: Miguel Moyses Neto Se gostou
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Uma
pequena informação, quando compartilhada pode percorrer um grande caminho, mas
acaba sempre encontrando seu legitimo destinatário !!!
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