Jamil Asfour, Partner at global strategy consulting firm, Roland Berger, joined us at our Digital Trends event to moderate our panel on digital transformation. He highlighted the importance of differentiating between transforming culture and transforming systems.
“We have to differentiate between strategically thinking about digital transformation and changing the mindset of an organization, vs an operational excellence and simply just upgrading the IT devices,’ he explained.
“When a company considers whether it should be on the cloud or have servers on its premises, that would be about best practice and operational effectiveness rather than strategy. Strategy is about organizational change. When strategy does not involve organizational change and only involves organizational digitization, that’s not digital transformation.”
Roland Berger helps leaders to formulate their approach to true transformation by redefining their vision and mission through design-thinking workshops and exploring their strategy, processes and IT.
“Technology is not a separate function. It's like carrying a mobile phone or working on a spreadsheet or a laptop. Digital transformation is as basic as that in order for a company to be able to survive and compete,” says Asfour.
According to him, there are a number of reasons for a business to undergo digital transformation—it is now a survival issue for many. A Forrester Research report revealed that executives predict nearly half of their revenue will be driven by digital by 2020. Of those businesses that have already made digital improvements, a Gartner survey revealed that 56% believe that they have improved profits.
Ultimately, it’s the needs of customers driving this transformation.
“Whether external customers or internal employees, people have already largely adopted digital practices in all facets of their lives, from shopping online via their mobile devices to adjusting their home thermostat remotely,” Asfour explains. “They are waiting for businesses to catch up.”