4 Key Factors Driving Digital Transformation
The world as we know it is changing, and it’s largely due to the mountains of new technology that make use of all the valuable data we continue to track. Beyond just the software industry, innovation is being seen across all different types of businesses thanks to the rise of digital technology in everyday life.
That, in a nutshell, is digital transformation. Of course, like just about any other buzzword you’ve heard within the software industry—such as agile or DevOps—there are various definitions. If you ask Kevin McCaffrey, the founder and CEO of Tr3Dent, the meaning is clear.
“I like to explain the term as the changes made to an organization’s activities, processes, business model, and people who enable them to take full advantage of new technologies,” he said in a recent interview with StickyMinds.
There is a bit more complexity to what’s driving this style of transformation, so McCaffrey pinpointed the four factors he’s found to be the most apparent:
- The ever-increasing level of connectivity between everything—essentially, the Internet of Everything
- Data has finally become an asset for companies in all different parts of the world, and there’s a near-endless amount being collected.
- To meet major challenges (such as smart city ecosystems) and deliver real value to users, companies need to collaborate at a business and technical level with the people, organizations, and things within the ecosystem.
- Lastly, the introduction and dominance of the platform business models being used with companies like Uber, AirBnB, and Alibab
There are so many strong reasons why digital transformation has become big, but many organizations are missing a major opportunity by simply running digital projects instead of fully transforming the organization itself—similar to doing some agile things without actually committing to being agile.
“Digital transformation should be driven by the organization’s strategy and not just viewed as a collection of related projects. Strong and brave executive leadership is needed to steer an organization along the digital transformation journey,” McCaffrey continued. “Organizations that believe they will achieve digital transformation by simply running digital projects are more than missing an opportunity—they run a serious risk of failure.”
Understand why digital transformations are happening, evaluate your specific situation, and be sure that if you’re going to incorporate it into your strategy, you fully commit beyond a single project.