The boardroom's guide to going digital

Companies now are adopting artificial intelligence (AI) technology with open arms. It is easy to be enamored by new technology. Companies now tend to make changes and adapt to new technology.

The decision on digital transformation is taken in board rooms. These changes are going to have far reaching affect and are going to change the way the business functions in the world. Adapting to AI technology is also going to widen the gap between the bottom-line and the top-line of any company. That is why it is important that every company should have a digital transformation strategy.

Companies should also ensure that they avoid the pitfalls while embracing new technology. When you have a digital transformation technology, you should ensure that the technology is in line with the company culture and the objectives of the company.

You should ensure that the company has the digital transformation strategy in line with the client requirement and should have proper documentation. Before the live run, you should conduct frequent pilot tests so that the technology is fully in sync with the existing legacy system. You should also seek internal employee feedback before the live roll-outs.

Digital Transformation Steps: To a large extent the success of a digital strategy is dependent on re-imagining the business by a clear digital strategy supported by leaders who foster a culture which is able to change and invent the new technology. The company should also ensure that the digital strategy is in line with the prior technology evolution. Companies would generally want to have this digital strategy which will propel their system to a competitive advantage.

If you are not having a digital transformation strategy which will propel the company to a competitive advantage then you are not leading the industry and will soon find yourself to be lagging behind the industry standards. It is also important to realise that employees across different levels and across all age groups would love to work for a company which makes great strides in digital transformation. This is an important tip to the company leaders to attract and retain the best talent in the industry. Further, digital transformation strategy should be made with an eye on transforming the business to the next level.

The impetus for digital transformation is usually driven because of greater demand in efficiency and is usually customer-centric. Majority of the senior level leaders understand that a cohesive digital transformation strategy is imperative. Studies have found that about 50 percent of the European companies surveyed reported the absence of a well-defined strategy within their companies.

Barriers to Digital Transformation: There could be various reasons for barriers in the digital transformation. Some of the easily identifiable ones are resistance to change, lack of understanding and awareness at senior leadership level, a lack of resources with requisite skills. Reluctance to experiment with new technology and clinging on to the legacy system top the list of challenges faced in digital transformation. A few companies struggle with flexibility which creates a real barrier for digital transformation. Any digital transformation strategy requires working across different silos. This is also a bigger challenge.

More than 50 percent the companies face difficulties in working across silos. Any digital transformation is usually front-ended by the IT system. To make a digital transformation successful the IT system or the product line has to closely collaborate with various lines of business and the business unit heads. Business unit heads and the IT system/products team usually differ in their approaches. Digital transformation and strategy requires some risk taking ability. But few companies have risk-averse culture making it difficult to adapt to digital transformation. Digital transformation also requires a good financial budget to accommodate it. Companies which are financially stable can quickly adapt to digital transformation.

Benefits of Digital Transformation: The business today is very competitive. To survive in the industry analytical data will be very useful. They help in tracking and analysing performance, marketing campaigns, business growth etc. Digital transformation is very useful in identifying the requirement of the customer so that the energies may be channelised in the right direction. The future is digital; the sooner one adapts to the digital transformation the better it is for the company. Digital transformation will result in optimising business technology.

Optimising business technology will result in reduced cost for the company. Optimising business technology will also lead to increased sales. Digital transformation will lead to customer satisfaction ultimately resulting in acquiring, retaining and assisting customers.

Digital Technology and Legal: Revolutionising the company through digital transformation is on one part but protecting the same digital transformation is completely different part. One way to protect legally is through Intellectual property marks. The trademarks, copyrights and trade secrets can be well protected through IP. Company should understand the risks that come with digital transformation.

Companies should ensure entering into appropriate Non-disclosure agreements and other relevant contracts with various stakeholders to protect digital transformation. The stakeholders can be external clients, agents, contractors and subcontractors, internal employees, consultants, directors etc. The company should also have proper guidelines, and processes towards data protection and security, data mining and control, using data for advertising etc.

Digital transformation is not a product but a journey. Every company should be constantly in the digital transformation mode to be head and shoulders above the competitors.