Why Digital Transformation
- Feb 28, 2021
- 2 min read
Updated: May 10, 2021
The above quote by Ms.Margrethe Vestager, Executive VP of EU Commission stresses the importance and the need for digital transformation of the business irrespective of size and segment.
Digital Transformation is the buzz word today!!
It is central to the 4th Industrial Revolution promising business benefits from growing revenue, reducing costs, providing flexibility and engaging customers and many more.
Why Digital Transformation and Why Now is the first question that comes to our mind and it needed to be answered first whether you are a large corporation or MSME. It’s all the more important to address this question when you are a smaller organisation as the stakes are high with limited Resources.
Transformation is not new to the business world. Over the course of last 4 centuries, Mechanisation, Mass Production and Automation were results of inventions and technological advancement in Steam Power, Electricity and Computers & Automation. Today with Industry 4.0 we are in 4th industrial revolution with Digital Technology giving rise to Cyber Physical production systems.
As we observe History of transformation 3 characteristics are common:
1.Costs Shock
Cost of production becomes cheaper through new technologies. Products/Services become more affordable
2.Capabilities shock
New capabilities are needed to be relevant post transformation and new type of jobs and skills are to be learnt. These disruptions won’t occur overnight like natural calamities like Floods or Covid-19. They take shape over many years and suddenly explode in adoption
3.Industry structure and business Model Change
New product/services need and new way of engagements start to rise. Unless the incumbents aware of these characteristics changes and adopt it will be a difficult for them to survive.
Let’s take an example of Japanese consumer electronics giants of 70/80. They are well managed companies, innovative and released new products. However, the focus was on hardware technologies. They didn’t focus on building software and user interface and eventually lost to companies like Samsung.
As we see waves of these digital technologies like Cloud, Data, Internet of things, Automation, 3d Printing, E-Commerce, Social media, Customer needs and preference will change/evolve.The pressure to deliver the same/similar product/service at much faster, cheaper better way will be needed or perish.
Either as standalone or working in tandem with other digital technologies
SMEs will be benefiting increased revenue growth through new Digital channels
Optimise operations and reduce costs boosting profitability
Anticipate and engage customers proactively
Launch new product/services that are faster cheaper and better
If you are not proactively thinking about it someone else will do and you can become obsolete. You can be a Disruptor or Get disrupted!! The choice is in our hands.
nicheBrains is curated platform for manufacturing industries to connect with global digital transformation experts on-demand to engage on short bursts of consulting (Micr Consulting)
This is first part of Golden Circle of Digital Transformation
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