The digital revolution has fundamentally reshaped the way we live, work, and interact with the world as most organizations are racing to become a fully digital enterprise. From the ubiquitous presence of smartphones to the expansion of e-commerce, the digital age has significantly impacted every angle of our modern life. It has given rise to new business models, transformed customer expectations, and disrupted established industries. In this landscape, the choice between embracing digital transformation and resisting it is not merely an option; it is a matter of survival.
A digital enterprise is an organization that completely integrates digital tools and technology into all aspects of its operations in order to increase productivity, create a better customer experience, and improve the efficiency and effectiveness of business processes.
A digitally modernized enterprise utilizes cutting-edge technology to stay relevant and provide excellent service to clients in unexpected ways. Technology has an impact on every important activity, from customer experience to enhanced operational productivity.
Domino’s is currently north of 60 percent on its digital orders, and 10 percent walk-in. About 25 percent or so are call-in phone ordersSource: Domino’s
One example of a successfully transformation company is Netflix which has a brilliant business model, a strong focus on content, a unique digital culture, and remarkable technological capabilities. Because of that, they were able to expand their business so far and revolutionize the movie rental business model in such an innovative way.
What are the benefits of digital enterprise?
Digital enterprise offers numerous benefits, including increased operational efficiency, enhanced customer engagement, data-driven decision-making, agility in adapting to market changes, cost savings, and improved competitiveness, enabling organizations to thrive in the digital age.
Digital companies have an advantage regarding the ability to expand their operations globally. Leverage digital tools and the internet, they can reach markets worldwide overcoming the challenges that non digital organizations often face. By conducting business online, they can tap into customer bases without the need for infrastructure or extensive travel. This does not accelerate their growth but also saves significant costs by reducing expenses associated with traditional global expansion such as setting up physical offices, managing logistics, and covering travel expenses.
They also provide a better return on investment because they don’t need to spend money on physical stores, printing copies, or manual repetitive tasks.
How to become a digital enterprise
Here are the steps to become a true digital organization:
1- Executive buy-In
Securing commitment from top leadership is the cornerstone of a successful digital transformation. When your top business executives enforce digital initiatives, it would set the top for the entire organization. Their buy-in not only provides the necessary resources and budget for digital projects but also introduce a culture of innovation and change readiness throughout the company.
2- Define a clear vision
This vision should articulate the ‘why’ and ‘how’ of digital initiatives, aligning them with the broader business objectives. A well-defined strategy serves as a roadmap which will help everyone in the organization understand the purpose and direction of these digital efforts.
3- Align business with IT teams
To accomplish the full potential of becoming digital, business and IT teams must coordinate their efforts and develop a well-defined plan. Changes from IT teams need cautious preparation which is why it is critical that they operate at the same frequency to reduce the chance of failure.
4- Develop an agile mindset
Resilience and agility are essential for sustaining profitability in today’s continuously changing market. The capacity to work with an agile mentality, where any projects or initiatives should be performed in cycles, with each cycle having a well-defined result, is a critical component in the success of transitioning into a digital enterprise.
By employing agile project management approaches, businesses will be able to deliver better-aligned outcomes and detect any flow as soon as possible in order to optimize and re-establish the project’s success track.
Almost three-quarters (71%) of organizations report using Agile approaches sometimes, often, or always.Source: Project Management Institute
5- Change management
This is one of the most critical aspects of running a successful digital enterprise since organizations frequently encounter a lot of opposition to any changes made to the way we operate.
As a leader in any company, your primary responsibility in this initiative is to achieve stakeholder buy-in and understanding of the additional benefit of having a digital culture. Because people are accustomed to doing things in the same old ways, you must ensure that all concerned stakeholders are willing to accept and adapt to change.
You would not believe how many unsuccessful digital initiatives we had because employees refused to change how they do business on a daily basis.
This should start at the top, with CEOs and CTOs outlining clear futures and paths for company change.
The brutal fact is that about 70% of all change initiatives fail.
6- Access current status
It’s essential to take a comprehensive look of the organization’s current digital landscape. This assessment provides valuable insights into existing strengths, weaknesses, and areas that require improvement. It serves as a baseline against which progress can be measured, helping to set realistic goals and priorities.
Understanding the current status enables the organization to identify potential roadblocks, such as legacy systems or skill gaps, and carefully plan on how to overcome them.
7- Streamlined processes
This step involves analyzing and rethinking existing workflows to eliminate bottlenecks, redundancies, and manual tasks. Automation and the integration of digital technologies can help streamline operations, enabling faster decision-making and the reallocation of resources to more strategic tasks.
8- Hire tech-driven talent
If your company lacks the necessary digital savvy, you must employ them as quickly as possible. When Subway began its digital journey, it employed around 150 individuals with high-tech backgrounds to assist them in this goal and accelerate the process.
These highly experienced specialists will assist you in accelerating the digital program and will play a critical role in its execution.
9- Digitization & Digitalization are a MUST
Any digital transformation program must start with digitizing your information and automating your organization’s internal procedures. Both digitization and digitalization are necessary yet difficult to attain; nonetheless, without both, you have no hope of becoming a fully digital business.
10- Set technology as core business
We must accept that technology is invading and will continue to evolve and that we cannot function without it now. As a leader, you must prioritize technology in your firm.
Nowadays, every company is a tech company, even if it does not sell or provide technology-related services because all businesses must invest in core technologies in order to run successfully.
Every company is a software company. You have to start thinking and operating like a digital company. It’s no longer just about procuring one solution and deploying oneSource: Microsoft CEO Satya Nadella
Check the below article to know more about why every company is becoming a technology company.
11- Plan IT systems adoption
Businesses must implement various systems throughout all departments. It is critical to carefully pick them and how they integrate with one another in order to give your employees a smooth digital experience.
Having simple-to-use yet effective systems in place will allow your employees to work more efficiently, innovate, and think of new methods to reach the company goals.
12- Continuous improvement
Continuous improvement is vital to staying relevant in the rapidly evolving digital landscape. It entails establishing mechanisms for constant monitoring, feedback, and adaptation. Regular assessments of the effectiveness of digital initiatives, coupled with a commitment to learning from successes and failures, ensure that the organization remains agile and adaptable.
What are the six characteristics of digital enterprise?
The six characteristics are:
1. Customer focus
The enterprise is focused on providing a great experience for its customers, whether they are external or internal.
The enterprise makes decisions based on data and analytics.
3. Lean and agile
The enterprise is able to move quickly and efficiently.
The enterprise is constantly looking for new ways to improve and grow.
The enterprise works closely with its partners and stakeholders.
The enterprise is able to adapt and survive in an ever-changing environment.