Wednesday, November 16, 2016

"CIO Master" Book Tuning #136: Three Business Benefits from IT-Driven Digital Transformation

IT maturity is moving up from business-IT alignment to business-IT engagement and IT-customer alignment.

Digital disruptions are inevitable, and digital transformation is unstoppable. As companies across industrial sectors and around the world transform themselves into the digital business that is based on ‎information, their ability to explore one of the most invaluable and intangible assets in the organization has become far more decisive than their ‎ability to invest in and manage physical assets. Organizations shouldn’t just response to exponential changes and continuous digital disruption in a reactive way. The forward-thinking organizations have to empower IT and take a structural approach in building organizational level changeability for driving digital transformation and substantial business benefits.

IT-driven digital transformation is the journey of continuous delivery and improvement: Business has three fundamental pillars: People, Process, and Technology. The digital CIO is a business conductor to orchestrate digital symphony. The role of modern CIO is to identify and blend the ways that information and technology can assist and shape the business by linking all digital aspects together to enhance cross-functional communication and collaboration. The most effective digital workplace is one where collaboration and sharing are the norms. Organizations and their people learn through their interactions with the environment. They observe, act, and take the responsibility for the consequences of their actions, make inferences about those consequences, and draw implications for future action. IT driving digital transformation can enforce business benefit via mixing diverse business ingredients to create products and processes which generate differentiated value for their business’s long-term growth, and the business benefit can be measurable in dollars, employee engagement, customer satisfaction, quality, etc. The process, change assessment, capability tuning. etc, are all tactics to get the organization there; but it all starts with the realization that "we can't stay the same." IT-driven digital transformation is the journey of continuous delivery and improvement; unless something new or unforeseen and game-changing is found during the execution, continuously try to improve/develop/change everything in a prioritized order as long as it creates more long-term value than it costs to achieve.

Minding IT-Customer alignment gap: IT maturity is moving up from business-IT alignment to business-IT engagement and IT-customer alignment.The integrated digital platform, and running IT as the business are all critical issues to mind the digital chasms, have a significant opportunity to make meaningful strides in closing the IT-customer alignment gap and enforcing IT-business integration. IT and the business need to integrate and act as one in a flowing process within the digital ecosystem, because, with the accelerating digital speed, everything is always moving forward promptly. As the information steward of the business, IT can provide businesses the ability to apply real-time insights across the organization in ways never possible before. With these insights, organizations acquire the ability to reshape products, services, and customer engagement, with the help of technologies to delight customers and improve employees’ satisfaction. Thus, IT-driven change will speed up digital transformation for building the outside-in customer-centric business.

Reinvent digital workforce to be innovative - as a state of mind, besides doing any innovation project: The pervasive digitization requires both business and IT professionals to rethink how things are done in organizations. The 'reach and range' flexibility and unprecedented digital convenience that now exist remove barriers that have existed in the past. An essential role for information management and knowledge management is the need to connect ideas but also people, and crucially management; coach them and many others in organizing their personal knowledge mastery and collectively engaging with others and making effective decisions. Therefore, IT-driven digital transformation can inspire growth mindset, advocate the importance of innovation, collective thinking, intangible assets etc. So importantly, IT needs to be run as a changing organization in the company by innovative digital leaders. You can realign your operating model so that employee feedback and customer preferences and requirements are reflected throughout the value chain, which will be the business beneficial in terms to speed up and enable you to listen, engage and nurture relationships with consumers and employees and build an integrated view of running a people-centric, and fast responsive digital organization.

IT can drive the digital transformation but it should be in conjunction with the business. Otherwise, IT will be seen as in competition with the business. It is IT and non-IT working together as close strategic partners that will derive the most appropriate strategy and deployment, to unleash business potential and maximize business benefit, and build a people-centric, high-performing, and high-mature digital organization.




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