Akhil Shah - How to become a Truly Digital Enterprise

1. How to become a truly Digital Enterprise A digital enterprise can be defined as an enterprise that utilizes technologies like AI, Blockchain, Cloud, and Data Analytics to improve its current processes, create new services and products to generate new revenue sources, and venture into new markets. Whether it be manufacturing, banking or retail, the current industry generally has legacy systems in place. These systems being effective in the past decade, cannot handle the current customer needs. The customer of today needs hyper-personalization and a greater focus on himself. The legacy systems have no capability to provide this. Hence, the new digital tools must be ingrained into the very core of the organization to become a truly digital enterprise. For an enterprise to become a truly digital enterprise, it must go through digital transformation. This transformation is generally a long journey of must have the buy-in of the top leadership from the very beginning stage and should enjoy the same till the very end. As every enterprise is unique to its structure and operations, the digital transformation process must be unique. Hence, Before starting the digital transformation journey, each organization should go through a digital maturity assessment. A digital maturity assessment decides the current state from among the following: organization’s 1.Digitally Unaware 2.Digitally Aware 3.Digital Starter 4.Digital Proficient 5.Digital Expert Image source https://enterprisersproject.com/sites/default/files/images/cio_digital_transformation_resource.jpg There are many frameworks to determine this, like McKinsey Digital 20/20’s, BCG’s Digital Acceleration Index (DAI), Deloitte-TM Forum Model etc. After understanding the stage at which an organization stands, there are four stages through which an organization must evolve to the next stage of digital maturity. 1. products and services using IoT sensors and data collection algorithms to collect relevant data for insights into new products and value add services. 2. Process Innovation: Utilizing automation technologies like RPA, AI-based Chatbots, MIS and Excel macros to free up time for people to innovate further and focus on product improvement, New Product Development and enhance customer satisfaction. Product/Service Innovation: Upgrade the Image Source: https://img.etimg.com/thumb/msid-74115869,width-300,imgsize-170277,,resizemode-4,quality-100/innovation.jpg

2. 3.Business Model Innovation: Shifting from traditional thought of selling boxes to supporting the customer during the entire product lifecycle, deploying new business models to make the product/service more affordable (modular products, subscription-based selling, value-added services) and co-creating new products and services. 4.People/HR Innovation: Evolving the mindset of people and encouraging them to unlearn and relearn new tools and technologies and focus on automating sustaining current products and services to free up time and resources to generate new sources of revenue through new products or providing more value to the customer. Product Innovation Process Innovation Business Model Innovation People/HR Innovation It is challenging to make all the above phases of transformation run in parallel. But it is imperative that later stages of People/HR innovation and Business model innovation support Product and Process innovation. It is also suggested that the product and process innovation should not overlap to avoid conflicts and downtime. Transformation into a truly digital enterprise will never be a destination. It will always be an ongoing journey focussed on enabling customer delight and customer-centricity by employing the latest tools and technologies. Akhil Shah. MBA-DEM 2021-22.