Transformation is not the same as reform or improvement.
Before we get into the concept of digital transformation, let’s clarify the meaning of the word transformation.
“Transformation” means a great and dramatic change. “Transformation” means a change in the nature and logic of a phenomenon.
Although “reform” is a respectable concept, “transformation” is something else.
“Transformation” focuses more on the roots and stems, and “correction” on the branches and leaves. Consider, too, that “transformation” is unlikely to be possible without “deconstruction.”
Digital transformation is business transformation.
I consider this short sentence to be the key to understanding the concept of digital transformation. A concept that is widely misunderstood these days and everyone is helped by their suspicions (and often mistakenly).
Digital transformation is a dramatic change in the performance of an organization or a country centered on transformational technologies. IoT, cloud computing, mobile applications, social media, virtual and augmented reality, data analytics, artificial intelligence, and blockchain are some of the most important types of transformational technologies. I emphasize that digital transformation does not mean the decorative and fashionable use of these technologies, but we can claim digital transformation when these technologies, business models, and the experiences of stakeholders (such as customers and employees at the organizational level and citizens at the national level) and our operational processes. Have turned upside down in a desirable way.
Organizational digital transformation means building an organization at the level of the digital age. In other words, the digital transformation of the organization means the creation of new organizational capabilities that can ensure the success of the organization in the digital age. If we base this definition on work, we will no longer make the strategic mistake of equating digital evolution with information technology. The scope of digital transformation is the whole organization, where all dimensions of the organization in the digital age should be redefined by using transformational technologies.
In a digital business, we need to have a digital transformation strategy to create a pleasant experience for the stakeholders, especially to create a digital customer experience. In today’s digital economy, the effects of digital transformation cannot be achieved without digital metamorphosis, which means digital technology-centric transformation. Let’s not forget that one of the most important dimensions of digital organizational transformation is the promotion of business processes by intelligently utilizing transformative technologies.
As I said in the definition of digital transformation, this concept means dramatic change, not a gradual improvement. According to George Westerman, a leading researcher at MIT, digital transformation is about turning the organization’s silkworm into a butterfly, not just a faster silkworm.
Digital transformation is considered by many experts in the field to be more of a human challenge than a technological challenge for organizations. Numerous studies by leading management consulting firms show that the most important obstacle to the success of the digital transformation is digital ” culture ” and ” skills “.
Another important point to note is this. That “digitization” is different from “electronicization”. The digital environment is not the same as the online and electronic environments. The digital environment is a desirable combination of online (information technology) and offline (physical) resources to create an engaging experience for external (such as customers) and internal (such as employees) stakeholders.
Let me illustrate the concept of a digital environment with an example. People have been shopping for years by going to physical stores. With the birth of sites like Amazon.com, e-shopping and online, came into our lives. But in 2017, Amazon, which had a completely electronic birth, opened its digital store called Amazon Go. This store exists physically, but by using transformational technologies, the selection, purchase, and payment process has made you attractive and pleasant, so that you can have a convenient purchase without stopping and as soon as possible.
The Digital Transformation Model 20200, which was developed at the Universities and used in different periods of the National Digital Transformation Assessment, considers ten dimensions for digital transformation. Without systematic and balanced attention to the development of these dimensions, one can not hope to gain value and benefit from digital transformation. In the figure below, you can get acquainted with these ten dimensions.
The Digital Maturity Model 20200 equips the organization with digital empowerments such as ” governance and leadership”, “strategy”, “culture and skills “, “innovation”, “technology” and “data” as conditions for achieving the digital achievements of the “business model and ecosystem “. “Customer Digital Experience”, “Employee Digital Experience” and “Digital Processes”. Combining digital enablers and achievements will build the best digital organization. The dimensions of this model are shown in Figure 1.
“Digital governance” refers to a system for leading the digital transformation of an organization that defines policies, structures, processes, and mechanisms to ensure the acquisition of digital value and benefit. “Digital leaders” are also leaders who define and frame the issues of the digital age well, provide them with solutions centered on evolving technologies, and coordinate the pillars of their organization to move toward digitalization.
” Digital Strategy ” uses transformational technologies to create capabilities within the business so that an organization can respond to changing market conditions.
Regarding the importance of the “culture and skills” dimension, it can be said that for a sustainable digital transformation, the existence of a culture of technology acceptance in the organization is essential. Digital culture is the culture that organizations of this age must cultivate to travel digitally.
Moving in the direction of digital transformation requires a powerful “technology” infrastructure. In addition to equipping with technologies, how to lead and manage information technology in this direction will be effective.
It is clear that ” data ” helps organizations of this age to move beyond speculation and move toward inspiring predictions and continual testing of hypotheses. Today, data provides the insight needed to make decisions, and the era of decision-making based solely on intuition and emotion is over.
“Digital innovation” also means innovation in products, processes, or business models using digital technologies. “Digital innovation” refers to the use of digital technologies to solve existing business problems and issues.
“Digital business models” are business models that create value for organizations with a focus on digital technologies. The transformation that digital technologies bring to business models can be minor or fundamental.
Advances in the field of information technology, as well as the advent of digital technologies to better perform “organizational processes”, have provided better conditions. Digital technologies can help improve the way businesses work. Based on this approach, elimination, simplification, and automation of processes are performed.
Entering the “Employee Experience” course is a major revolution in human resource management. In this period, with the change in the behavior of organizations, individuals are not treated as “assets and assets of the organization”, but are treated as “human beings”. ” Employee experience includes all the factors that affect employees’ perceptions and feelings about their work environment and job. Digital technologies have impacted the ” customer experience
” more than ever. By creating an attractive, interactive, and completely different environment, digital technologies can dramatically improve the customer experience and meet their expectations in the best possible way.
Here are five steps that organizations can take to prepare for the digital journey in 2022.
Trend 1: Digital transformation is becoming a way of life
The transformation began in the right conditions before the Corona epidemic, but now digital initiatives are expanding rapidly. Due to the situation created by Covid 19, organizations accelerated their investments in digital technologies and most of them permanently refined their organizational strategies. Many managers believe that change has come to stay. So instead of trying to reach a final state of mind, they focus on making their organization more accountable. It can be said that operational agility and flexibility will become a priority for organizations in the coming years. Because technology plays a key role in flexibility and adaptability, they need to pay more attention to external forces that affect their business in the short term (such as market factors and regulatory concerns).
It is clear that in 2022, managers intend to participate to a large extent in business ecosystems. However, companies need a strong technological core to invest in ecosystem partnerships. They need to re-evaluate how they manage their assets, infrastructure, and talents. In addition, organizations need to take important action that was not prioritized, underestimated, or neglected in the early days of the Covid 19 invasion due to lack of focus and haste.
Trend 2: Human capital is precious and scarce
Many believe that a wave of job resignations is on the way. It is also possible that millions of jobs will be lost in the coming years due to a lack of skilled talent worldwide. This lack of talent will lead to the loss of many revenue streams.
Although job virtualization gives organizations greater access to global talent, talent management will eventually require more attention. Organizations need to examine their internal capabilities and human capital and make the necessary changes to attract potential employees. Attention and encouragement of employees for their valuable cooperation and prioritizing the welfare of employees are among the things that can be helpful in this regard. Managers of organizations should know that if they do not meet the needs of their employees, very shortly they should seek to fill jobs within their organization. One of the things that employees need, especially in post-corona times, is more flexibility at work. Also, working in an organization that is more compatible with people’s values is one of the criteria for choosing a job today. It can even be said that those who stay in an organization are not necessarily satisfied and believe that their employer does not care about their mental and physical well-being. This also applies to the financial well-being of employees.
In the wake of the epidemic, people now want to work on their terms and feel good about what they offer and produce. In a competitive market, top talent will be rewarded by organizations that prioritize employees.
Trend 3: Sustainability and transparency are essential priorities
Traumatic events in the last two years have forced people to reconsider their priorities. In terms of sustainability, in particular, it is clear that the epidemic has affected the views of most global consumers. Consumers have concluded that sustainability and health are closely related, so when choosing a brand, sustainability and the benefits of health and well-being are important to them. While sustainability has historically been considered a luxury item, many people are now willing to pay more or even lower wages for a sustainable future. People are increasingly likely to apply for jobs in environmentally friendly and socially responsible organizations in the future.
On the other hand, there is a big gap between consumers’ claims about what they want to do and how they spend their money. A small portion of consumers’ shopping carts is sustainable or environmentally friendly products, which means that organizations have valuable opportunities to take advantage of this unmet demand. But doing so requires convincing people by organizations. Many consumers do not trust organizations’ statements about environmental sustainability, and many do a lot of research before buying. Therefore, if organizations are to establish a targeted relationship with consumers, they must provide clear and accurate information about their initiatives. However, many organizations have significant information gaps that need to be addressed given the importance of this issue.
Process 4: Technology must change business operations
It is not enough to take a gradual approach to technology. Businesses need to rebuild their operations as a whole to reap the full benefits of digital transformation. Instead of presenting separate innovations that make people’s workflows easier, executives should focus on building integrated systems that will transform business models by 2022. Upcoming failures should not frighten them, because risking is a price that leads to technology-driven benefits. Organizations that do not penalize failure will have far greater revenue growth in terms of technology adoption and digital transformation.
During the Corona era, many organizations in various sectors began to build the technological capabilities needed. Cloud exploitation, hybrid cloud operations, artificial intelligence, and smart workflows are among the most in-demand. Investing in technology will lead to huge profits for organizations. The Internet of Things, artificial intelligence, and the cloud are at the top of the list of technologies that benefit organizations the most. Also, investing in ecosystems and innovation has created many revenue streams for organizations.
Trend 5: Trust and security underpin sustainable innovation
As cloud-based technologies, platforms, and ecosystems expand the scope of the organization and create new opportunities for innovation, they also create new threats. Some organizations are unable to secure data that is being moved across multiple cloud environments and within the organization.
Many believe that most cyber incidents originate from cloud environments, and this vulnerability is due to the inability to adapt security practices to a more open environment. Many organizations cannot offer and expand new cloud capabilities to their internal and external partners. As organizations expand their cloud space to enable telecommuting, supply chain integration and enhance the customer experience, they must also develop their approach to cybersecurity. “Zero trust” is a preventative approach to security that assumes destructive agents are everywhere. This method requires authentication and authentication for each value exchange, which allows organizations to open their borders more securely.
Open and secure cloud networks can create a cycle that enables innovation and collaboration. The organizations that have the most mature cloud security practices (meaning organizations that integrate their cloud and security strategies) performed more than twice as well as their counterparts in terms of revenue growth and profitability.
The Kavian Scientific Research Association (KSRA) is a non-profit research organization to provide research / educational services in December 2013. The members of the community had formed a virtual group on the Viber social network. The core of the Kavian Scientific Association was formed with these members as founders. These individuals, led by Professor Siavosh Kaviani, decided to launch a scientific / research association with an emphasis on education.
KSRA research association, as a non-profit research firm, is committed to providing research services in the field of knowledge. The main beneficiaries of this association are public or private knowledge-based companies, students, researchers, researchers, professors, universities, and industrial and semi-industrial centers around the world.
Our main services are Based on Education for all Spectrum people in the world. We want to make an integration between research and education. We believe education is the main right of Human beings. So our services should be concentrated on inclusive education.
The KSRA team partners with local under-served communities around the world to improve the access to and quality of knowledge based on education, amplify and augment learning programs where they exist, and create new opportunities for e-learning where traditional education systems are lacking or non-existent.