At Apidays Singapore 2022, Dr. Dennis Khoo, A Digital Transformation expert at allDigitalfuture, presented a keynote on digital transformation. Here is a summarized version of Dennis’s keynote on there is no such thing as digital transformation and why that matters. There is also a link to the recording of Dennis’s presentation.
The understanding of Digital Transformation (DT) is a misnomer and there are reasons why digital transformations turn out to be a great failure. According to Dr. Dennis Khoo, there is no such thing as digital transformation as there is no way to completely change digitally. Digital transformation is actually to improve the experiences of businesses at lower costs by leveraging processes, people, IT, and new ways of working.
The key point of DT is to expose core business systems functionality to build software that is viable & flexible. In actuality, running a business online is much more than just software.
Other cases that also need attention are-
This creates a lot of complexity for businesses.
Since data is a new gold, the key is to manage it as a strategic resource so that it can be used intelligently. Since the knowledge of such things has become common in all Businesses, it becomes important to get to the next level.
The usage of this data to establish the lineage to an entity, how the data can be centralized, maintained, governed, and remain unreplicated to begin to link it to the things, people & places.
The major differentiation comes here due to the complexity of how to do transformational changes. This is where businesses are not able to implement it and align with their business goals. This is why most business transformations fail.
According to BCG research,70-95% of the total businesses don't achieve their digital transformation stated objectives and remain a failure.
There are 5 actions for success in achieving better digital Transformation.
Like a transistor which was invented much earlier but its massive usage in integrated circuits became popular much later.
Most Businesses are not in the pivoting stage to find usage of newly developed technology and they prefer to implement already made solutions. Most companies don't have the risk appetite to invest in new solutions. They want readymade solutions.
This is due to focusing too much on solutions. If we focus ourselves on customers' problems, we can get ourselves a step ahead of everyone. The answer is to know the problem better than your customer and a better way to remain one step ahead of the competition.
What is the problem-Identify the interested Segment and the Gaps these segments are facing Why does it exist - Getting Insights into why these gaps are existing How do you fix it -Construct Experiences and separate them from the process for internal efficiency
It is inclusive of making money in a period that aligns with the risk appetite. It has elements like-Differentiation, the path to profit, scaling & core competence gap. These elements also interact with each other and these interactions are cyclical. Managing them well is important to maintain this dimension.
Design,methodologies,data,IT,Ecosystems & new disciplines of which data,design, methodologies and IT are standard for transformation
Culture- values,leadership,talent gap and structure.
These things make complex circular loops and the whole thing must be managed very holistically making it complex.
Like Segway, that is borderline feasible and wasn't a good example in history. For a Business transformation to succeed, it should have all three and lie in the center of the three.
Most issues in transformations concern design and process. A weak design and process cannot bring a strong transformation.
Comparing graphical values of singular performance impact vs ease of adoption and use by the customer we get 4 quadrants of Business impact:
This graph showcases that the process becomes very important and obsession with product details becomes important to have a transformational experience
Dr Dennis Khoo shares his expertise and experience in his book Driving Digital Transformation: Lessons from Building the first ASEAN Digital Bank: https://alldigitalfuture.com/bookstore/ols/products/driving-digital-transformation-lessons-from-building-the-first-asean-digital-bank
... or watch Dennis's full presentation: