An unexpected trip to Italy
Florence was the number one spot I’ve wanted to go to, so when the opportunity to travel to Italy arose, I jumped right on it! 12 Days spent traveling alongside the coast, from city to city, we couldn’t fathom how humid the weather could get at times. When in Salerno, I opted for a striped white top from H&M and some Zara white pants to blend in with the coastline. However, when the temperatures started to drop, we dropped by a local Starbucks (yes, Starbucks happens to be everywhere you go on the globe) to pick up a cup of coffee.
With the hot drink in hand, we were ready to face the evening chill and move on. The city is small and crowded, traffic jams were a frequent occurrence so we spent most of the day up on our feet, exploring. There was no stopping, photos needed to be taken, the beach needed visiting, I was in a hurry to absorb as much of the experience as possible.
“Companies that invest more in digital transformation actually outperform their peers overtime.
These companies are more prepared for disruption, better able to monetize new digital channels,
and better able to build a bigger user base. What’s more, this phenomenon exists regardless of industry.
– Geoff Cubitt
CEO, Isobar US
I suggest the following 3 areas for digital transformation
1. Process Transformation
2. Business Model Transformation
3. Organisational/Cultural Transformation
• Process Transformation
Deals with modifying or improving a business process to achieve business goals. The last 18-24 months of the pandemic has created a fundamental shift in how businesses deliver products and services due to the change in customer preferences. The lockdown of major economies has increased the need for digitised internal processes and customer delivery channels with most business now requiring some level of process transformation or radical process update to adequately engage customers in the post covid era. Undertaking process transformation will modernize an organization’s processes, integrate new technology, save money, and better incorporate core systems. An example is Dominos Pizza that reimagined the entire food ordering process to overtake Pizza Hut in sales.
• Business Model Transformation
Business model transformation compared to process transformation that focuses on specific ways of doing things aims at the core of how value is created and delivered in an industry. Simply put, companies pursue digital transformation to change traditional business models in response to the dynamic nature of their industries and markets. This is particularly important in developing economies striving to achieve economic, political, and social stability.
With the vacation to an end, I can’t help but think back on all the beautiful memories I’ve obtained through it. Each walk through the city, each gallery visit, I can easily say Italy is brimming with history and life. I would recommend anyone to travel to Italy at least once in their lifetime.
“We will focus on more than just products. We want to encourage our associates to turn more of their attention to new types of business models. Product innovations are important, but alone won´t be enough to ensure our company´s continuing success.”
Volkmar Denner,
CEO Bosch
Examples would be Uber’s reinvention of the taxi service, Netflix in video redistribution and Apple in music distribution.
• Organisational/Cultural Transformation.
I am sure you heard or have seen this phrase before “Culture eats Strategy for breakfast”, well this is truer for a successful digital transformation of any business. A redefining of organisational core values, mindsets, capabilities, and talent is required to survive ad deliver long-term gains in the digital economy. This is because digital requires an agile mindset, flexible and adaptable workflows, decentralised decision-making process, fail quickly, learn and iterate style to product delivery, reliance on partnerships and ecosystems.
Failure to align digital transformation with culture may result in slow technology adoption that may lead to failure of the initiative, loss of competitive edge, loss of good talent, revenue and profitability. An alignment of digital transformation and culture must be sought, with leaders sharing with clarity and simplicity the gains and impact of the initiative on an ongoing basis.
I will share on the important steps and major pitfalls to look out for in digital transformation next however a major takeaway is that technology is an enabler and would deliver outstanding gains when used to drive defined and effective business processes, business models that deliver value at the appropriate price points, expand product and service offerings and provide outstanding customer experiences.
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