Digital Transformation is no longer A Choice for SME Leaders

In the last 8 months, a meme circulating in our social media windows is

Who led Digital Transformation in your Organisation?

1. CEO

2. CTO

3. COVID-19 —- And the answer being jokingly COVID-19.

Digital Transformation is still in its early days and only a few large organisations have started to see the real benefits of digital transformation initiatives. Digital transformation is re-imagining the way the business is run and leveraging digital technologies to launch a new product or business model and many more.

While it’s true COVID-19 has made adopting digital technologies faster with remote working and forced business executives to think digital in every aspect of their work. However, the underlying question is Digital Transformation no longer a choice? Let’s explore the question.

Transformation is not new to the business world. Every transformation brings with them “Cost Shocks”, the ability to provide product/service at a much cheaper cost with added value. In the last century automobiles, assembly lines, electronics, and many others transformed mobility, manufacturing, entertainment, and many industries.

When the transformation occurs not just the specific company in question changes but also the materials needed, supply chain, target customers change. In short, industry structure changes. Companies that fail to plan for these changes and continue the business in old ways become obsolete and replaced by new players. Enough case studies are available today in web examples of failure to adapt to the changing environment.

Digital Transformation will play a large role in the coming decade across different industries. Initiatives related to automation, connected products, services, new business models will reshape many industries. The convergence of Technologies like 3D-Printing, Artificial Intelligence, Robotics et.all., will enable products/services available even cheaper, faster, and better. Failure to adapt to digital will pave way for companies started by digital natives taking away business from old organisations. No industry will be immune to this reality.

Digital Transformation is no longer why but when should be the question companies should ask, in matters concerning digital transformation.

Questions to reflect : How immune are you to Digital? Where are you in your Digital Journey?