4 Critical Enablers of Digital Transformation
We know by now that digitalisation is crucial if a business is to remain relevant and to thrive. But many organisations are still struggling to determine the best way forward.
I’ve written elsewhere about the 5 Essential Actions for Digital Transformation, but another good start would be to consider these four critical enablers of digital transformation: the Internet of Things, industry-specific differentiation, a digital business platform and Bimodal IT.
The Internet of Things
The Internet of Things (IoT) has played an important role in the blurring of the digital and physical worlds, and has therefore been a driving force in reshaping businesses – even industries – creating new opportunities, new competitive advantages and driving new revenues and efficiencies. IoT has been instrumental in connecting people to businesses and connecting businesses to each other, eliminating barriers across sectors and facilitating new value chains and partnerships that would not otherwise have been possible.
In the past, industry specific businesses that targeted highly specific problems and customer segments lacked the volume of users to be able to compete with larger, horizontal businesses.
But now, the on-demand economy has grown beyond all expectations. With the likes of eBay having familiarised millions of consumers with the concept of buying goods from strangers on the Internet, they have actually paved the way for vertical disruptors to their marketplace. Vertical businesses can work well in niche fields by offering faster, more efficient matching algorithms, and a faster, more efficient service to customers. If they are smart, industry-specific businesses can take advantage of some real differentiation opportunities.
Digital Business Platform with API Management – to create an ecosystem
Regardless of the type of digital business, most enterprises do not have the technology components to support the new business models. With a future that promises change as the only constant, the digital business needs an IT infrastructure built to change, not to last. Enter the digital business platform. A digital business platform is the interface between changing markets and agile business operations, the common face of business and IT strategy. It is the layer of differentiation and innovation that allows the creation of flexible and adaptive applications and it serves as a foundation for ongoing change, supporting the dynamic and external-facing nature of digital business.
Bimodal IT – to reduce cost and change faster
There remains the challenge of the divide between the conventional “proven mode” of IT delivery and the innovative “agile mode”. Proven, core IT infrastructure is designed for the stability and resilience required to manage transaction and support systems. Its priority is high-quality data management and built-in security to keep core business services reliable. On the other hand, in order to develop and deploy new services in days, or to serve customers with personalised web pages in seconds, you need modular, customer-facing technology with the priorities of flexibility and speed.
Your digital business platform needs the capability to support both modes smoothly and effectively.
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Pre Sales Director, Nordic