In 2016, simply having a digital strategy isn’t enough. It isn’t even a safe strategy. Success today requires companies to approach every engagement as part of an overarching strategy of executing policies and practices in a digital world. It has to become part of your organization’s DNA. And as with any transformation, the change brought about by it, and which follows in its wake, can be empowering or destructive. Digital transformation is filled with equal parts danger and opportunity.
Many of the technologies as well as the business processes and even best practices that were the bedrock of the old world are being washed away. In their place, new business leaders will rise who can channel the energy of this transformation into the foundations that will take us into the next century. To successfully embark on this digital transformation, it is necessary for leaders to offer insight into each of the Cloud, Analytics, Social, and Mobile (CASM) pillars of innovation and instill a sense of speed and business agility into their organizations. Doing so, however, creates new and more frequent vulnerabilities that require enhanced risk mitigation plans.
At NETSCOUT, we are known for assisting companies that have embraced digital transformation, making sure that all engagements within their digital strategy are executed with maximum efficiency and security. This weekly blog will focus on all aspects of the digital CASM and subsequent transformation.
What is Digital Transformation, Really?
Cleverism.com defines digital transformation as the use of digital technology in every aspect of human society and living. They see digital transformation as the third step of a long process, coming after achieving digital competence and then becoming fully digital literate. It’s a good definition as one might expect from a site with ‘clever’ in its name, but what does it mean for business?
Digital Transformation (DX) means that organizations need to be prepared to conduct business in an environment where everything carries an online component, everything is interconnected or soon will be, and everything is always on. Interactions with clients, customers and even competitors can occur at any time, in almost any way, and in great numbers. DX is also an enabler for collaboration between employees. In areas like desktop support, research, digital software sprints, DX can help further drive innovation and ultimate customer satisfaction.
We will cover many specific areas driving digital transformation in our weekly series, but technologies like The Internet of Things, Mobility and Bring Your Own Device programs, Cloud and Big Data, cognitive computing and others are both driving the transformation forward while also making IT infinitely more complex. Mastering IT complexity, therefore, is a key characteristic to driving value in business outcomes.
The Change is Now
Those who are asking when the digital transformation rain will start falling might need to look down to realize that they are already standing in rising water. Look no further than the S&P 500 as evidence of the sweeping changes digital transformation has already wrought. The S&P 500, normally a bastion of stability, experienced an unprecedented 50 percent churn rate in just the last 15 years. In 1999, General Electric and Coca-Cola were at the top of the list. Today it’s Apple and Google. And look at a company like Uber, which owns no cars and predominantly exists digitally in the cloud. It has a market cap larger than either Ford or GM, which are both still producing physical products. It’s estimated that in the next 10 years, the S&P 500 churn could grow even more, to as high as 75 percent.
You can bet that organizations that have successfully implemented DX will lead the new charge. DX supports new business models. By leading this change a common success metric to look for is for organizations that grow by relegating the competition to the margins.
The takeaway is that digital transformation is already changing the fabric of our industrial base, our companies and our society in radical ways. And the leaders who realize this first will have the best chance of positioning their organizations not only to survive, but also to thrive, in the wake of this transformation.
At NETSCOUT, we know that everything about digital transformation relies upon information. The information each organization needs to process, analyze and take action on is no longer just what pops out of a financial database. It’s not even just the ERP or CRM. It’s everything about the information, the social and operational data, how it was collected and how dynamic it is in a world of constant change. It then becomes crucial to have access to a central snapshot of all the data sources, from all your organizations technologies, to help make decisions the best decisions.
Customers expect a flawless experience. If they don’t get it, they will be gone in a nanosecond. Assuring the delivery of business services as always on and always working, is what tethers the customer to the organization over time.
Starting today, this weekly blog will examine all aspects of digital transformation. Our goal is to help you chart your course as the forces of change continue to accelerate. It’s a brave new world out there, but one with limitless opportunities for those who know what to expect. We hope you’ll join us on this exciting journey.