Digital transformation is really a question, says David Rogers, author of "The Digital Transformation Playbook."
And that question is how does any business started before the internet need to adapt to continue to grow in the current technology-dominated society, Rogers tells CO-OP Think 17 in New York.
“That’s a very different question than how you form the next startup,” he says.
Digital transformation, Rogers notes, is not about technology. It is about changing the way you think as an organization.
Rogers says this digital transformation includes five domains:
1. Customers. People today have many connections and networks. They’re connected in so many different ways than in the past.
How does this affect your customer experience?
2. Competition. The definition of "competitor" is broadening to include asymmetric entities.
For example, Toyota no longer just competes with Ford and GM, it competes with Uber and others who have different business models, to fulfill consumers' transportation needs.
3. Data. The ability to bring vast data sets together from all aspects of the business, and even outside the business, is enabling growth.
And it increasingly allows companies to manage the customer experience in the moment.
4. Innovation. In the past, innovation was about the smartest, most informed people making big bets.
But that high-risk approach is shifting to a new methodology that embraces quickness and many small bets to see which pan out.
5. Value. Go from defending your value proposition to adapting it. Today, companies must look at new technology as a way to create new business versus defending the old business.
Furthermore, companies do not define their value, their customers do.
The need for digital transformation is stark, he says. If you do not transform, you will be disrupted.
“Every business is fighting for relevance,” Rogers says. “Transformation is about strategy, leadership, and new ways of thinking.”
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