What Drives Digital Transformation?
Digital technologies have profoundly impacted our personal lives, the way we work, and society at large. The pace of changes continues to accelerate, reshaping businesses, entire industries, and economies. There is no single definition that accurately encompasses all the dimensions of digital change. Digital Transformation (DX or DT) refers to the cultural, organizational, and operational changes that can affect not just companies and disruptive competition, but also the regulatory environment and societal shifts as well.
Digital transformation is the process of shifting your organization from a legacy approach to new ways of working and thinking using digital, social, mobile and emerging technologies. It involves a change in leadership, different thinking, the encouragement of innovation and new business models, incorporating digitization of assets and an increased use of technology to improve the customer experience as well as that of your organization’s employees, customers, suppliers, partners and stakeholders
Digital transformation is imperative for all businesses, from the small to the enterprise. During the past two decades the emergence is clear and the path inexorable. Now, only the speed of change matters and their effect on individual companies and markets.
Digital transformation is a massive undertaking, especially for larger, established companies. When done right, it will produce a business that is more aligned with customer demands and resilient in the fast-moving digital future.
At Momenta, we use the term Digital Industry to reflect the dynamism of Digital Transformation in an industrial context.
Digital Industry is about creating value in new ways. For some companies, digital is about:
In short, the Industrial Internet of Things (IIoT) is a growing infrastructure that underpins modern economies. It is an essential element in any firm’s plan for strategy and execution. The strengths include greater visibility into operations and a quantitative basis for decision-making across all dimensions of manufacturing and the supply chain.
To achieve a fully native digital transformation, it is necessary to use a digital transformation roadmap and formulate a digital transformation framework to guide digital change. Digitalization should be about being open to re-evaluating and evolving the entire business, embracing digital change, and understanding where there are unrealized opportunities. Utilizing a digital transformation organizational structure, such as a roadmap or framework, is the best way to maximize transformative leadership, empower leaders, and evolving the business model to ensure you are meeting customer expectations, as well as those of all of your stakeholders.
Although digital transformation will vary widely based on the organization’s specific challenges and demands, there are a few constants and common themes among existing case studies and published frameworks that all business and technology leaders should consider as they embark on digital transformation.
For instance, these digital transformation elements are often cited:
Industry 4.0 (also referred to as The Fourth Industrial Revolution) encompasses the intertwined digital and technological advancement of industrial sectors and organizations. Key to the development of Industry 4.0 is the proliferation of IoT and IIoT.
Industry 4.0 (also referred to as The Fourth Industrial Revolution) encompasses the intertwined digital and technological advancement of industrial sectors and organizations. Key to the development of Industry 4.0 is the proliferation of IoT and IIoT.
There are a number of shifting definition of DX (Digital Transformation), but the definition from Agile Elephant captures the gist of it: “Digital transformation is the process of shifting your organization from a legacy approach to new ways of working and thinking using digital, social, mobile and emerging technologies. It involves a change in leadership, different thinking, the encouragement of innovation and new business models, incorporating digitization of assets and an increased use of technology to improve the experience of your organization’s employees, customers, suppliers, partners and stakeholders.”
The Internet of Things (IoT) is a computing concept that describes the idea of everyday physical objects being connected to the internet and being able to identify themselves to other devices. The IoT is significant because an object that can represent itself digitally becomes something greater than the object by itself. No longer does the object relate just to its user, but it is now connected to surrounding objects and database data. When many objects act in unison, they are known as having "ambient intelligence.".
The Industrial IoT (IIoT) involves applying the connectivity of standard IoT in the context of industrial operations. The use of IIoT in large-scale industrial scenarios offers revolutionary capabilities and benefits to enterprises, potentially transforming entire industries. Asset monitoring, predictive maintenance, and equipment safety are notable areas of value creation powered by IIoT. The IIoT is a major force in the integration of Information Technology (IT) and Operational Technology (OT) systems.
According to Gartner, Digitalization is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business. Digital Transformation involves the use of digital technologies to advance new business models and re-imagine processes, through the use of technologies such as cloud computing, mobile connectivity, and Big Data analytics. For traditional Industry, this involves the additional dimension of integrating operational technology with information technology.
Transformation is a journey that may encompass several phases, and digital transformation trends tend to shape the path that each enterprise should take to achieve a full digital transformation of their business. In manufacturing, for example, machine learning, the use of advanced robotics, and process automation can have a decidedly positive effect on delivery times and the bottom line. Of course, all businesses can benefit from the adoption of digital tools like artificial intelligence and the public cloud. Companies such as Momenta are dedicated to assisting enterprises in determining the best path for their digital transformation – helping them build strategies that can drive fast-moving, MVP-driven, monetization-ready, scalable solutions.
Though it is clear that a properly planned and executed digital transformation can have myriad benefits for both the company and its customers, surprisingly few enterprises have completed this mission-critical task. Less than 20 percent of large companies have completed their digital transformation, but of those that have, 80 percent report enhancements, including meaningful efficiency and optimization for their current business, improvements to the lives of their employees, and a greater ability to create new business models/products/services.
Benefits of digital transformation Other benefits include:
The role of Chief Digital Officer is focused on creating and implementing an organization's overall digital strategy. The primary goal is to strengthen the relationship between data and customers, and to advance the adoption of digital strategy across multiple levels of the organization. The role of the CDO bridges technology, line of business and corporate strategy with the aim of advancing use of digital technologies to improve the customer experience.
The core aims of Digital Transformation Strategy focus on using technologies to improve business performance. This may involve creating new products and services or transforming existing ones. A comprehensive Digital Strategy outlines how an organization can use technologies to create incremental value, increase their competitive advantage, and identify tactics to achieve their business goals. It explores new growth opportunities, business models, enhanced collaboration with stakeholders, and more efficient processes.
A sound digital transformation strategy is critical to achieving the full promise of digitization within an enterprise. Moment'a s Digital practitioners are passionate about delivering growth strategies and operational improvements for a sustainable and digital future. Digital evolution should be used as an opportunity to fully assess and transform how to look at offerings, their value, key performance indicators, and delivery. Too often organizations start their transformation with technology. Technology, however, is secondary to the new business values that must be achieved. When aligning with a digital transformation strategist, you should insist on starting with a deep dive understanding of your business and industry. The result is a strategy specifically tailored to your business and its industry dynamics with the goal of fostering digital transformation success.
The nature of connectivity is also changing. On one hand, high-speed internet connectivity has become increasingly available and, on the other, low-power wide-area networks (LPWAN) such as LoRa enable wireless sensors with multi-year batter life. The former creates new opportunities to transition more business functions online and the latter enables new models for sensing/control. For industrial enterprises, digitalizing asset-intensive processes provide game-changing benefits enabled by ubiquitous connectivity.
Mergers and Acquisitions play an essential role in the digital organization’s strategic tool kit. Types of M&A rationales range from incremental tech and talent tuck-ins, to consolidation for market scale, to market adjacencies to business transformational deals.
Ecosystems are an important aspect of Digital Industry. Such ecosystems include a wide variety of participants with varied roles. This includes customers, employees, suppliers, technology providers, industry consortia, and even local/state governments.
Industry 4.0 (also referred to as The Fourth Industrial Revolution) encompasses the intertwined digital and technological advancement of industrial sectors and organizations. Key to the development of Industry 4.0 is the proliferation of IoT and IIoT.
Industry 4.0 (also referred to as The Fourth Industrial Revolution) encompasses the intertwined digital and technological advancement of industrial sectors and organizations. Key to the development of Industry 4.0 is the proliferation of IoT and IIoT.
There are a number of shifting definition of DX (Digital Transformation), but the definition from Agile Elephant captures the gist of it: “Digital transformation is the process of shifting your organization from a legacy approach to new ways of working and thinking using digital, social, mobile and emerging technologies. It involves a change in leadership, different thinking, the encouragement of innovation and new business models, incorporating digitization of assets and an increased use of technology to improve the experience of your organization’s employees, customers, suppliers, partners and stakeholders.”
The Internet of Things (IoT) is a computing concept that describes the idea of everyday physical objects being connected to the internet and being able to identify themselves to other devices. The IoT is significant because an object that can represent itself digitally becomes something greater than the object by itself. No longer does the object relate just to its user, but it is now connected to surrounding objects and database data. When many objects act in unison, they are known as having "ambient intelligence.".
The Industrial IoT (IIoT) involves applying the connectivity of standard IoT in the context of industrial operations. The use of IIoT in large-scale industrial scenarios offers revolutionary capabilities and benefits to enterprises, potentially transforming entire industries. Asset monitoring, predictive maintenance, and equipment safety are notable areas of value creation powered by IIoT. The IIoT is a major force in the integration of Information Technology (IT) and Operational Technology (OT) systems.
According to Gartner, Digitalization is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business. Digital Transformation involves the use of digital technologies to advance new business models and re-imagine processes, through the use of technologies such as cloud computing, mobile connectivity, and Big Data analytics. For traditional Industry, this involves the additional dimension of integrating operational technology with information technology.
Transformation is a journey that may encompass several phases, and digital transformation trends tend to shape the path that each enterprise should take to achieve a full digital transformation of their business. In manufacturing, for example, machine learning, the use of advanced robotics, and process automation can have a decidedly positive effect on delivery times and the bottom line. Of course, all businesses can benefit from the adoption of digital tools like artificial intelligence and the public cloud. Companies such as Momenta are dedicated to assisting enterprises in determining the best path for their digital transformation – helping them build strategies that can drive fast-moving, MVP-driven, monetization-ready, scalable solutions.
Though it is clear that a properly planned and executed digital transformation can have myriad benefits for both the company and its customers, surprisingly few enterprises have completed this mission-critical task. Less than 20 percent of large companies have completed their digital transformation, but of those that have, 80 percent report enhancements, including meaningful efficiency and optimization for their current business, improvements to the lives of their employees, and a greater ability to create new business models/products/services.
Benefits of digital transformation Other benefits include:
The role of Chief Digital Officer is focused on creating and implementing an organization's overall digital strategy. The primary goal is to strengthen the relationship between data and customers, and to advance the adoption of digital strategy across multiple levels of the organization. The role of the CDO bridges technology, line of business and corporate strategy with the aim of advancing use of digital technologies to improve the customer experience.
The core aims of Digital Transformation Strategy focus on using technologies to improve business performance. This may involve creating new products and services or transforming existing ones. A comprehensive Digital Strategy outlines how an organization can use technologies to create incremental value, increase their competitive advantage, and identify tactics to achieve their business goals. It explores new growth opportunities, business models, enhanced collaboration with stakeholders, and more efficient processes.
A sound digital transformation strategy is critical to achieving the full promise of digitization within an enterprise. Moment'a s Digital practitioners are passionate about delivering growth strategies and operational improvements for a sustainable and digital future. Digital evolution should be used as an opportunity to fully assess and transform how to look at offerings, their value, key performance indicators, and delivery. Too often organizations start their transformation with technology. Technology, however, is secondary to the new business values that must be achieved. When aligning with a digital transformation strategist, you should insist on starting with a deep dive understanding of your business and industry. The result is a strategy specifically tailored to your business and its industry dynamics with the goal of fostering digital transformation success.
The nature of connectivity is also changing. On one hand, high-speed internet connectivity has become increasingly available and, on the other, low-power wide-area networks (LPWAN) such as LoRa enable wireless sensors with multi-year batter life. The former creates new opportunities to transition more business functions online and the latter enables new models for sensing/control. For industrial enterprises, digitalizing asset-intensive processes provide game-changing benefits enabled by ubiquitous connectivity.
Mergers and Acquisitions play an essential role in the digital organization’s strategic tool kit. Types of M&A rationales range from incremental tech and talent tuck-ins, to consolidation for market scale, to market adjacencies to business transformational deals.
Ecosystems are an important aspect of Digital Industry. Such ecosystems include a wide variety of participants with varied roles. This includes customers, employees, suppliers, technology providers, industry consortia, and even local/state governments.
Momenta’s core business is to help industrial enterprises master how to generate business value and reap the benefits from digital technology. We enable clients to understand the technology landscape and harness the best use of new tools available. Our practitioners are positioned deep within Digital Industry which enables us to deliver exceptional advisory services, M&A guidance, executive search, and venture investments.
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