Tonight, DSMMCM1314 students were invited to learn ‘Why Businesses Must Embrace Digital Transformation’. The talk was given by Richard Lucas from Discerning Digital, and involved discussing what the digital transformation is, what the key drivers are and who is doing it well. The aim been to bring together the various separate topics we have been learning over the course of the year.
Firstly, Discerning Digital defined Digital Transformation, stating, ‘Digital Transformation simply refers to the changes and challenges associated with digital technology, across all aspects of the business’. The emphasis of this definition was its use of simply language which was easy to communicate. The second definition used was from Forbes stating ‘Digital Transformation is the casual phrase to describe the process that organisations undergo when they adopt digital technologies such as the internet’. The emphasis of this definition was the word ‘process’ showing that digital transformation is a series of steps not just a static endeavour.
Digital disruption was identified as a key driver of digital transformation, as every major industry is about to be digitally disrupted in some way. Companies who are now finding themselves become increasingly obsolete can explain this occurrence due to their slow response to adopting digital. Didier Bonnet stated in regards to this “The only wrong move is to not move at all”.
The connected customer was then discussed, with Generation Y getting a mention as the core demographic to be effected by digital transformation. The power has shifted from business to customer and Digital Transformation is ‘forcing businesses to rethink what their customers value and how they meet those needs’ Forbes. Trust is now a crucial determinate of a customer using a business, thus prompting businesses to recognise people as individuals. Statistics from Neilson in a study into Consumer Trust in Online, Social and Mobile Advertising Growth found that a mere 33% of people asked trusted Advert of a mobile compared to a staggering 92% of people trusting recommendations from people they know. 70% of people trusted consumer opinions online. In a time pre-internet it was thought the power spectrum laid at consumer 20% and seller 80%. However, post internet this has shifted to consumer 80% and seller 20%. Trusted content could be seen as an explanation to influencing customers.
The Transformational Process: Assess, Align, Establish and Transform. This process describes the steps a business must take in order to adopt digital. This process involves assessing the current digital maturity of the business and understanding the current risks, establishing objectives, changing the infrastructure of the business and transforming through the use of training and manageable sized projects.
Below is a short video describing the Seven Stages of Digital Transformation.
Thanks Discerning Digital for the great talk!
From dsmmcm1314 students Lizz & Sarah
dsmmcm1314 