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Lessons from Digital Transformation Leader Organizations

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writer and researcher BrightGreen PR

Julian Jackson is a writer whose interests encompass business and technology, cryptocurrencies, energy and the environment, as well as photography and film. His portfolio is...

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It is clear that companies involved in digital transformations of industry need to be clear on strategy and resources. Without such an impetus, organizations will struggle to implement change. Many utility businesses are not really succeeding in completing the digital transformation. A piecemeal approach is not going to fundamentally re-imagine the business model. Utility companies can also contend with insufficient resources — both financial and workforce — and in our industry, overly complex technology constructed from a patchwork of legacy systems.

Leaders in the field find increased revenue growth and customer outcomes. Firms with advanced digital practices usually see significant gains to KPIs, for example, net value creation and cost savings, and they are also some of the companies most able to ride out the disruption caused by the pandemic in 2020 and move forward with revenue and user bases.

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The most pioneering digital companies fully embrace digital transformation. They keep their focus on creating customer benefit, which allows them to effectively utilize advanced technology, partnerships, and data to transform their business. The fundamental difference between leaders and those lagging behind, is that leaders see that to optimize customer outcomes and revenue growth, these solutions — which can be be cloud operations, improving plant and infrastructure, or implementing advanced technology — must be coordinated across the business and not one-off siloed improvements.

 

Top Digital Transformation Goals

 

  • Increase revenue
  • Boost business speed and flexibility
  • Enhance customer experiences
  • Upgrade security
  • Progress innovation
  • Improved brand perception and/or loyalty

Source: A commissioned study conducted by Forrester Consulting

 

Challenges for Some Companies

Some companies are finding these challenges are difficult to overcome. Lacking a digital transformation strategy is one aspect, but not the only one. Organizations also struggle with issues like overly complex and difficult-to-maintain legacy technology, a lack of workforce with the necessary skills, and budgetary constraints. Legacy systems create additional technical challenges and security issues, reducing the speed at which necessary changes can be implemented. If internal resources are insufficient, many firms need to rely on outside specialists or other third-party vendors to assist in areas like technology security, cloud migration, digital experience design, and innovation.

 

Key Recommendations

Successful digital transformation isn’t the result of doing any one thing. Instead, it is the result of coordinated actions across many different areas of the business, using technology to change how the company creates and delivers value to customers, employees, and society.

 

How to gain the most from the digital transformation:

  • Focus strategy on customer value creation

  • Adopt a digital-product mindset

  • Design your technology architecture for agility

  • Seek out strategic partners to synergise the transformation

  • Plug into a networked digital transformation ecosystem

 

The idea that everything can be done in-house is not applicable to today's business world. It will be even less relevant in the future. The most advanced companies strive to create a broad ecosystem of business and technology partners. Operating inside a digital ecosystem requires the use of APIs to support the speedy and secure transfer of data across company and system boundaries. This will mean designing technology solutions to gain advantage from a deep and wide digital ecosystem.

Overall, the most important objective is to have a plan, a digital strategy objective, to be achieved over a number of years, rather than reacting piecemeal to different event as they impact upon the company.

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