Is a company able to transform itself into a new disruption model like Amazon, Google or Tesla? Are companies ready to go into different stages, each stage with a different goal, to drive a transformation? Hardly ever!
Believe it or not, it seems that only a few companies can successfully redesign themselves to drive a new vision to transform their role in the industry and force a true disruption which starts by a customer centricity and the outside-in processes approaches. To the breaking of paradigms, there’s the need to fully understand the differences of Digitation, Digitalisation, and Digital Transformation terms. Agriculture, Automation, Health, Food, Transportation, and many more industries can significantly benefit from a Digital Transformation.
What does Digital Transformation mean to your company?
Must of the times, companies focus on effectiveness and efficiency, but they have problems when changing the basic paradigms in the minds of their teams. That’s for sure they have been misunderstanding these terms, to the point that the power and importance of Digital Transformation are faded away. Let's explain the main differences among them so you can take the most out of these tools.
According to Gartner’s IT Glossary, “Digitisation is the process of changing from analogue to digital form." It is the transformation of data elements into digital workflows, as the conversion of paper-based processes to bits and bytes. For instance, converting handwritten or typewritten text into digital form is an example of Digitisation; then encoding it, so that computers can store, process, and transfer such information. In an enterprise context, it's essential to keep on mind that it’s the information you’re digitising, not the processes.
Digitalisation uses the Internet of Things (IoT), sensors, wearables, Robotics, Analytics, Cognitive Computing, and 3D Printing. It is when a company embark on a series of Digitalisation projects, going from computerising processes to re-educating workers to use computers. It is how many areas of social life are updated around digital communication and media infrastructures; how people interact and move away from analogue technologies (from mail, telephone calls to digital email, chat, social media,) and becoming digitalised.
Automation is a significant part of the Digitalisation change, whether it is changing work roles or transforming business processes in general. Moreover, "Digitalisation increases process efficiency and improves data transparency, and of course, it should help boost your top line,” explained Georg Tacke, CEO, and Annette Ehrhardt, Global.
As enterprises apply ‘digital technologies’ – meaning computers and other information technology – people’s jobs change (factory workers putting away their usual tools and instead using computer-controlled equipment, for example.) Digitalisation is transforming the world of work. Getting hold of digital skills has now become a condition for employees, industry and success.
What is Digital Transformation?
Digital Transformation is the transformation of the core of the Supply Chain to provide new outcomes. It brings together all technology innovation, but the focal point is on an organisational change to deliver new value schemes. Let’s take again as an example Amazon that makes a move from selling books to developing an ecosystem for writers to the creation of online digital editions. Amazon redesigned the processes for book creation.
An organisation might carry out a sequence of Digitalisation projects, ranging from automating processes to reteaching workers to use computers. Digital Transformation is a far-reaching term which refers to the customer-driven-strategic and a business transformation that needs cross-organisational changes, as well as the implementation of Digital technologies. The enterprise becomes customer-driven from end-to-end, facilitating ongoing Digitalisation proposals.
Driving Transformation
Therefore, we digitise information, processes and roles that support the operations of a business, and we digitally transform the industry and its strategy. Digitisation and Digitalisation are mostly about technology; on the other hand, Digital Transformation is about the customer.
Supply Chain in many enterprises is repeatedly defined as another role within an operative enterprise. As a result, no function within the company feels empowered to drive this disruption. Change this by building a cross-functional team and enabling holistic thinking. Companies are taking different approaches with more potential benefits, such as:
The Industry 4.0 initiatives typically focus on driving digital manufacturing outcomes, plus the Internet of Things (IoT) along with, Robotics, 3-D Printing, the redefinition of maintenance, Blockchain, Analytics to automate track and trace data. Also, staff make of young innovators, a digital-place-on-top team designed to help groups within the company drive Digital initiatives, focused test and learn programs to solve new approaches based on business value. Innovation centres, with a concept of experiential learning.
Which method works best? All of them would help you to build a Change Engine in the company through procedures that embrace change: Reward change agents and let loose creativity through corporate programs like test and learn funding, shark tanks, workshops learn and ideation days. Provide financing for this transformation. Free the team to do work and enable progress. Through stories or events help drive success celebration; reinforce training through coaching. Make a difference. Build cross-functional participation and focus on diversity, including different ways of thinking, backgrounds, age, and experiences which lead to better outcomes. Lead by using digital innovation to drive value.
Summing up: Digitisation and Digitalisation are basically about technology, but Digital Transformation is about the customer and the business. However, few enterprises feel empowered to question the outcomes. The first step in driving a Digital Transformation is to outline the result and visualise what could they bring. Stop struggling the traditional models and break paradigms to make a difference!
Dave Food
Prophetic Technology
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