Commencing an article on Digital Transformation with a thought-provoking headline that characterizes it as an “illustrious unknown” is a compelling strategy to capture attention. To address the concept of Digital Transformation, it is necessary to provide an initial introduction to the topic.
Introduction
The company I work for is called Blacksync. It was founded in 2008 as a brand in the corporate intelligence industry. Over time, it expanded its services to include both corporate intelligence and cybersecurity. Recently, in the summer of 2020, I joined the US company, which was transformed into a consulting and solutions provider for Digital Transformation. Our main focus is small and medium-sized enterprises or SMEs.
After dedicating considerable time to studying numerous documents, technical articles, and extensive volumes on Digital Transformation, I aimed to advocate for and steer our organization’s corporate transformation toward becoming a frontrunner in Digital Transformation Security. However, following thorough research, I have concluded that despite the abundance of experts discussing Digital Transformation, it is crucial to raise awareness among owners and managers of small and medium-sized enterprises (SMEs) regarding its implications and potential benefits for their businesses as the significant risks in terms of security. Many individuals claim to be digital transformation specialists without a comprehensive understanding of the process involved in transitioning a traditional business into a digital one, particularly from the overall security perspective, encompassing IT and beyond.
Who is the Digital Transformation Specialist?
Upon reviewing various texts on Digital Transformation and its potential impact on business performance and resilience, many Digital Transformation Specialists fully understand the subject’s theoretical aspects. However, many need more practical experience addressing the security risks associated with Digital Transformation, particularly in real-world scenarios.
An enduring debate among physicists revolves around the originator of the quote, “…if you can’t explain it to a 6-year-old, you don’t understand it well enough…” Some attribute it to Richard Feynman, and others to Albert Einstein. I hope that a similar discourse emerges among Digital Transformation Specialists regarding the security issue.
A proficient Digital Transformation Specialist can explain the concept of Digital Transformation in simple terms, even to a 6-year-old, and illustrate how it can optimize business operations. Effective communication with diverse audiences, including small and medium-sized enterprise owners and managers, constitutes a fundamental requirement for a Digital Transformation Specialist. This necessitates the use of accessible language that accommodates individuals with varying levels of technical proficiency.
Digital Transformation Specialists play a critical role in facilitating the successful implementation of Digital Transformation within organizations. The absence of an adequate understanding of security matters can pose a formidable obstacle to the fruition of a Digital Transformation project. Please sufficiently educate SME owners and managers on the fundamental principles, risks, and benefits of investing in Digital Transformation to ensure the project’s progress. By guaranteeing comprehensive comprehension of the project’s objectives and rationale, Digital Transformation Specialists can significantly enhance the likelihood of success for all stakeholders involved.
What does Digital Transformation mean for an organization?
Digital transformation, a commonly used term, refers to integrating digital technologies and tools to optimize an organization’s operations, processes, and services. While the literal definition of digital transformation is readily available, its implementation poses a complex undertaking, particularly for small and medium-sized enterprises (SMEs). It necessitates a substantial shift in mindset, culture, and business processes, defying simplistic summarization.
We propose that organizations approach digital transformation from two interconnected perspectives:
- external digital transformation;
- internal digital transformation.
External Digital Transformation
The concept of Digital Transformation, often oversimplified as a means to enhance Customer Experience, warrants a broader perspective. It is more accurately portrayed as an initiative to improve an organization’s engagement with its external stakeholders. This encompasses not only the customer experience but also that of other key external parties, including suppliers, contractors, advisors, shareholders, and investors.
External Digital Transformation involves leveraging digital technologies to optimize an organization’s interactions with its external stakeholders, such as customers, suppliers, and partners. This encompasses the utilization of various digital platforms including social media, e-commerce channels, mobile applications, and other digital mediums to effectively engage with customers, market products and services, and streamline supply chain operations.
Fundamentally, External Digital Transformation entails preparing to redefine how an organization is perceived externally, leveraging a range of tailored digital tools. The development and calibration of these digital tools should be customized to address the specific needs of the organization, as there exists no universal solution applicable to all scenarios.
Internal Digital Transformation
The concept of Internal Digital Transformation pertains to the utilization of digital technologies to optimize an organization’s internal processes and operations. This encompasses the integration of cloud computing, data analytics, automation, and other digital tools to elevate productivity, efficiency, innovation, and resilience within the organizational framework.
A pertinent illustration of this concept is evident in the repercussions of the COVID-19 pandemic in the early 2020s on organizations that were not inherently inclined toward digital business models or operational procedures. Conversely, it is noteworthy to reflect on how companies that encountered difficulties before the pandemic witnessed a substantial surge in turnover and profits during the most intense phase of the crisis. This was attributed to their prior investments in digital transformation, rendering them significantly more resilient than their counterparts.
Where do you start?
Digital transformation constitutes a critical process for businesses across all scales, yet small and medium-sized enterprises (SMEs) frequently encounter resource constraints that hinder the allocation of dedicated teams or departments to this pursuit. Consequently, these enterprises may have overlooked conducting a comprehensive assessment of their digital requirements and formulating a digital transformation strategy.
To initiate the digital transformation process, SMEs should commence with a thorough evaluation of their current digital infrastructure, identification of areas necessitating improvement, and establishment of precise objectives for their digital transformation endeavors. This assessment should encompass a review of existing technology and digital procedures, in addition to an appraisal of the organization’s overall digital maturity level.
Upon completion of this assessment, SMEs should leverage the acquired insights to craft a detailed digital transformation strategy. This strategy should delineate specific initiatives and projects, incorporating timelines, budgets, and anticipated outcomes. Furthermore, the strategy should align with the broader business objectives of the organization and undergo regular review and updates as necessary.
By instituting a clearly defined digital transformation strategy, SMEs can embark on tangible measures to optimize their digital infrastructure and processes, positioning themselves for enduring success in the digital era.
Digital Transformation Strategy
A Digital Transformation Strategy is an extensive and meticulous blueprint that delineates how an organization can harness digital solutions to enhance and streamline various facets of its operations, encompassing engineering, manufacturing, and service. Embracing digital transformation (DX) empowers organizations to utilize technology to refine their processes, enhance their offerings, and foster growth and prosperity.
Effective digital transformation strategies encompass a comprehensive evaluation of existing business processes, pinpointing areas where digital solutions can be integrated to enhance efficiency, productivity, and customer and stakeholder experience.
Digital Transformation Strategy is a multifaceted undertaking that demands meticulous planning, strategic deliberation, and a resolve to embrace change. By adopting a holistic approach that considers internal and external factors, organizations can adeptly navigate the challenges and opportunities Digital Transformation presents.
Digital Transformation involves:
- Assimilating digital technology across all facets of an organization.
- Instigating fundamental changes in its operational framework.
- Value delivery to customers.
For enhanced analysis and implementation, it is advisable to bifurcate the Digital Transformation Strategy into two interconnected segments: the Digital Facing Strategy and the Digital Internal Operations Strategy.
Digital Facing Strategy
External Digital Transformation focuses on enhancing an organization’s outward-facing image, improving customer and stakeholder experiences, and boosting brand value. This approach is established through the Digital Facing Strategy, which entails scrutinizing customer behavior, market trends, and competitors in order to formulate a digital strategy aligned with the organization’s business objectives. It involves establishing a user-friendly and visually appealing digital presence, encompassing website design, social media management, online advertising, and search engine optimization.
Digital Internal Operations Strategy
The concept of Internal Digital Transformation involves enhancing the organization’s internal operations, streamlining processes, and improving overall efficiency. This particular sub-strategy is delineated through the Digital Internal Operations Strategy, which encompasses assessing internal procedures, identifying inefficiencies, and developing a roadmap for Digital Transformation. Implementing this strategy may entail the adoption of innovative technologies such as automation, cloud computing, and artificial intelligence to optimize operations and minimize expenses.
These sub-strategies collectively constitute the Digital Transformation Strategy, which comprehensively impacts the entire organization. The strategy’s effectiveness is contingent upon the seamless integration and proficient execution of these two sub-strategies. If you seek further insights into the relevant concepts and estimated costs associated with these sub-strategies, please do not hesitate to reach out.
Is managing the digital transformation of your organization on your own worth it?
Digital Transformation is a complex process that involves the collaboration of professionals with different backgrounds, such as legal experts, finance experts, digital marketing specialists, design experts, IT sector professionals, and security specialists. Each of these professionals brings unique skills and expertise, making the process a multifaceted endeavor. This complexity underscores the need for professional assistance.
Large companies may have the internal resources to handle the digital transformation process thanks to their in-house professionals or a dedicated Digital Transformation department. However, small and medium-sized enterprises (“SMEs”) may not have the resources to manage this process internally. Therefore, it is recommended that SMEs seek the help of Digital Transformation Advisory experts to achieve the best possible results, minimize costs, and reduce execution times for the various processes involved in the company’s digital transformation.
The Digital Transformation process is not to be taken lightly. It involves several steps, including analyzing the organization’s current state, identifying areas that require transformation or improvement, developing a Digital Transformation Strategy, and implementing the Digital Transformation Plan. These steps are time-consuming and require expertise in various fields. Without this expertise, attempting to undertake them can lead to excessive costs and execution times. This is why having the right professionals by your side is crucial.
In conclusion, Digital Transformation is a complex process that requires the collaboration of professionals from different backgrounds. SMEs are advised to seek the help of Digital Transformation Specialists to achieve the best possible results, minimize costs, and reduce execution times for the various processes involved in the organization’s digital transformation. It is always better to rely on a Digital Transformation Specialist for assistance.
How secure is conducting digital business online?
Businesses vigorously pursue Digital Transformation initiatives in the contemporary digital landscape to maintain their competitive edge. Nevertheless, this rapid shift exposes them to a new wave of sophisticated cyber and communications threats. As these threats increase sophistication and frequency, businesses must strengthen their digital assets.
Small and medium-sized enterprises should thoroughly understand the risks inherent in digital business. More significantly, they must possess the knowledge and tools to safeguard their digital assets, securing their sustained success in the digital era.
The discourse surrounding the potential advantages of Digital Transformation in the corporate sphere is substantial. However, the considerable security risks inherent in this monumental shift are frequently overlooked.