At the International Conference “Digitalize to Revolutionize – Shaping the Future Digital Economy ” on the afternoon of November 8, Professor David Rogers - Columbia Business School - said that digital transformation is the process of transforming a long-standing business to develop effectively in the ever-changing digital age. However, most companies fail in this process of progress.
The expert added that there are currently five barriers to the digital transformation process of businesses: no shared vision, no habit of trying new things, no flexibility in management, no real growth in the organization, and no discipline in determining priorities. These are the main factors that cause 70% of businesses applying digital transformation to fail.
In the remaining 30%, businesses that are successful in digital transformation all have in common a common vision in choosing the most important issues in business. These companies dare to experiment with new things, have large-scale growth, focus on developing technology, talent and corporate culture. In addition, digital transformation is a process that has no starting point and no ending point, but must be applied continuously, from business to human resources in the business, from leaders to employees.
"You need to answer two questions: what role does the organization play, and how will your world be oriented? Next, you need to consider the impact of digital transformation, and digital transformation must be linked to the core business through daily transactions to support many parties in the ecosystem. In Silicon Valley, startups focus on discovering problems, not solutions," Professor Rogers further analyzed.
He also assessed that comprehensive, effective and sustainable digital transformation is a big problem for many organizations and businesses of all sizes. According to survey results from a number of strategic consulting firms such as McKinsey and BCG, more than 70% of digital transformation projects at businesses do not meet expectations or sustainable growth results.
It can be said that digital transformation requires organizations to always be ready to face market fluctuations, changes in customer behavior, technology investment risks, etc. Difficulties in financial resources, human resources, infrastructure and a systematic digital strategy, etc. are all difficulties that increase the risk of failure in actual implementation.
“We need to look at banking services as well as offering different services with different partners like e-wallets, and how to increase access to digital transformation services,” Professor David Rogers noted.
The expert gave an example of Estonia, a small country in Europe, but it has achieved a data foundation, creating conditions for development for its people. Singapore is a leader in digital transformation in Southeast Asia with the process of digitizing both the private and public sectors, always looking for ways to bring digital services to its people.
"For businesses in general, the core nature of digital transformation is to handle and support social issues. This is a strategy of changing thinking to apply new things. All businesses today need to define a new way of thinking in their relationships with customers and partners to promote their strengths. Data is the core asset of any business. The problem is to create a platform that can reach consumers - that is also a step of changing thinking" - Professor Rogers concluded.
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