The term digital transformation means many things to different people, but companies who have successfully embarked on this journey share common elements and cultural characteristics.
From my experience, every real digital transformation includes the following elements:
- A new customer experience – Companies either perform an extreme makeover of customer interactions or, more likely, create an entirely new, innovative experience
- A new business model – Companies go beyond simply optimizing existing business processes and significantly shift their models to take advantage of untapped technologies or unmet customer needs
- A new value creation model – Companies use co-creation processes to focus on the interest of all stakeholders, rather than just the producer and the consumer
Source: Jonathan Becher D!gitalist Magazine
Successful digital transformation also requires important inputs such as organizational alignment, digital technology, and careful prioritization. Yet, when I look at the companies that have truly transformed, I believe the real secret sauce behind their success is culture. These companies are: Risk-tolerant as they understand that each experiment is a powerful learning opportunity and that exponential rewards tend to be associated with increased risk Rapid, valuing speed over perfection and using quick iterations to support more experiments and higher-frequency development and feedback cycles Receptive to change, with a culture that thrives on feedback, even if it runs counter to conventional wisdom