Digital Transformation - 2021 Trends, Roadmap, Guidelines

Trends for 2021 and going forward @ Digital Transformation
3. Cyber Security will become more important – Organizations right now are more exposed to this risk, hence Cyber Security
is accelerating like never before. Databases, applications, processes they all need to function in secure environment. Disparate
workforces and cloud systems lead to more risk of potential cybersecurity breaches, making cybersecurity more important
than ever. Not only do potential outside hackers have more access points to target, but the risk of internal security breaches is
higher as well. Organizations will need to tighten the security of their systems and data in order to effectively manage remote
workforces and teams of the future.
4. Flexibility will be critical – To thrive in years to come, Organizations need to be agile, flexible and quick to adapt and adopt
change. The year 2020 taught us that the future can be impossible to accurately predict. Supply chains required massive
overhauls, entire workforces migrated to a remote model, and many employees were furloughed or terminated – and all of this
happened in an extremely short period of time. Rigid and inflexible systems of the past won’t cut it in 2021 and beyond, so be
sure to implement digital transformation solutions and organizational competencies that provide the flexibility to change your
business model as it evolves.
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Trends for 2021 and going forward @ Digital Transformation Continued…
9. Digital transformation strategy will be a differentiator - With the unprecedented magnitude of change and a plethora of
technology options available, organizations need to define custom digital transformation strategies that best align with their
overarching strategy and objective. A good digital strategy should clearly define the people, process, and technology aspects of
change. Rather than myopically focusing on selecting and implementing a single enterprise technology (such as one of the top
ERP systems or CRM systems), more effective digital strategies provide a clear roadmap for broader transformation.
10. Change management will be more important than ever – As we speak, employees are experiencing change fatigue. The
past year has been full of tectonic changes, so while it may be tempting to assume that your employees are used to change –
and therefore willing and able to change – it is important to recognize that change management is more important now than it
ever has been. Transformations of today are more likely to result in more material operational and organizational changes,
which underscores the importance of organizational change management..

Current 26 Digital Transformation Statistics & Facts Continued…
The stakeholders of digital transformation efforts
10. In 37 % of companies, CIOs lead transformation, while in 12 percent of companies, CMOs do. (Forrester)
11. 89% of CIOs say they’re more involved in leading digital transformation initiatives compared to their business counterparts (and 56 percent of
counterparts agree). (IDG)
12. For 39% of CIOs, digital transformation is the most important task given to them by their CEO. (IDG)
Best practices of digital transformation
13. Companies that use the Digital Factory approach report faster product launches, better customer experiences, and reduced tech development
costs. (McKinsey)
14. Companies that get significant value on their digital investments invest 33% more than other companies in technology, processes, operating
models, and the ways of working that will drive their digital supremacy. (PwC)
15. Companies move twice as fast on digital transformation when there is a shared understanding — among senior leaders, strategists and the
organization as a whole — of the digital path ahead. (Gartner)
16. Organizations using a step-by-step approach to digital transformation (having one foot in the existing business model while trying a new one)
have reported only a 16 % progress toward business change objectives, despite having worked toward business model transformation for 12
months. (Gartner)
17. On average, higher-maturity organizations’ digital transformation efforts are twice as broad as those at lower-maturity organizations (maturity
is defined as the level of benefit derived from digital transformation efforts). (Deloitte)

5 key takeaways from Digital Transformation statistics
1. Digital transformation is a must, but it is also a competitive advantage. This is because, despite the necessity of using technology to transform
their business, the majority of companies have yet to complete their digital transformation plans or formulate an effective strategy that scales.
2. CIOs are the owners of digital transformation efforts, but they’re not alone. This means your business probably needs a dedicated leader for
digital strategy, but, that doesn’t mean they should do the job on their own. Getting buy-in, support, and help from other leaders or employees –
and ensuring a common understanding of digital efforts – is essential. Harvard Business Review calls this “leveraging insiders”: taking
advantage of the knowledge of employees on what works and what doesn’t.
3. Distinguish between modernization/optimization and transformation. Modernizing your business processes is a big advantage, but that’s not all
digital transformation is. As a recent Forrester article states, executives should differentiate between “tactical digital investments” and
“forward-looking investments to build revenue-generating digital products.”
4. Think hard about your best course of action. For example, define the desirable future of your business without concerning yourself with the
present. This is a recommendation based on Gartner’s findings about organizations that progress faster to a business model change by not
doing it step-by-step. And, of course, as is evident from the stats, prepare to invest a generous chunk of your budget to your digital
transformation efforts.
5. Be customer-centric in your efforts. Digital transformation goals can be about your internal processes and productivity. But, the ultimate
purpose is to be able to connect with and engage your customers. As Accenture suggests in its 2020 Technology Vision report, you can
redesign the digital experiences you offer to turn passive audiences into active participants and co-creators of their relationship with your
brand (e.g. by taking advantage of AI, VR, IoT).

Key Questions to think before Beginning Digital Journey

OBJECTIVE DIMENSION : WHICH objective dimensions initiated the TRANSFORMATION –
1. Time: Faster deliveries, Faster production etc.
2. Finance: Cost savings, Revenue increase etc.
3. Space: Networking, Automation etc.
4. Quality: Product quality, Relationship quality, Process quality etc.
Digital Transformation Definition Framework
PROCEDURE: HOW Transformation occurs?
1. Sequence of tasks and decisions which are related to each other in logical and temporal context
2. Use of technologies/enablers to generate new applications/services
3. Acquisitions and exchange of data including analyses and use of option calculations
TRANSFORMATION DEGREE : HOW Intense is the
Transformation?
• Incremental (Slight)
• Radical (Fundamental)
OBJECTS: WHAT is Transformed?
• Individual elements (Example processes, customer relationships, products etc.)
• Entire Business Model
• Value Chains
• Value Creation Networks
RERFERENCE UNITS : Transformation is NEW for WHOM?
• Customers
• Own Business
• Partners
• Industry
• Competitors

How do I know, there is a need for my Organization to adopt Digital Transformation?

Why Digital Transformation is needed?
*You may enter Key points under each category to drill down deeper the reasons why you would need Digital
Transformation in your organization.
*WHY Digital
Transformation Is needed?
*Remarks
Innovation 1.
2.
3.
Customer Influence 1.
2.
3.
Competition 1.
2.
3.
Employee Influence 1.
2.
3.

What are the BUSINESS OUTCOMES which today’s Executives
would want when they think and talk about Digital?
1. Happier People
2. Retain Greater Talent
3. Deliver things in more efficient ways
4. Happier Clients
5. More effective costs in delivery
They are not mutually exclusive but fit in together in the most powerful way. People
need to adapt to that pace and match with changing technology. Companies have huge
chunks of data to do analysis on financial transactions and massive amount of
Operational data. People need to take ownership of those pain points, problems and
mistakes. Identify pain points. Intellectual capital is need of the hour.
Is there any difference between BUSINESS TRANSOFRMATION and DIGITAL
INFORMATION OR both are same, intertwined?

Digital Transformation Strategy

Key 5 Steps of Digital Transformation
Digital transformation steps:-
1. Digital Business Strategy &
Culture
2. Staff & Customer
Engagement
3. Process & Innovation
4. Technology
5. Data & Analytics

Key 5 Steps of Digital Transformation Continued…
Key Steps in Digital
Transformation
Commentary
3. Process and Innovation Agile concepts are a common toolkit to drive change and serve as a framework for customer centricity. Scrum is an agile
framework for software development based on empirical process control by transparency, inspection and adaption. Many of
Scrum’s agile principles can be used outside of software development in any department or project. These are cross-
functional collaboration in teams, self-organization inside the teams, a prioritization based on (digital) value and an iterative
realization process instead of a static long term planning. Agility means for companies and teams also the acceptance to
make mistakes and to understand those as a part of their leaning process.
Does the current business model still fit to the existing demand and customer needs? Is there any growth in users and
revenues? Are there any new technologies on the horizon that could change user behaviour and demand?
A good example is how the way people buy and consume music has changed in the last 20 years. First CD sales shifted
from offline stores to online shops in the late 90s, then people started to download music. As there was no common
infrastructure and no simple standardized solution in place to buy and download music online, many users shared songs
online for free illegally. The music industry tried to protect the existing business model instead of innovating and
transforming. Apple’s iTunes was the breakthrough for legal paid music downloads. Currently users switch to subscription-
based music streaming services such as Apple Music or Spotify. The music CD is already dead and music downloads are
riding into sunset.
It is always tough to change existing business models and revenue streams as long as they seem to work „somehow “. It is
even more difficult, if the change requires a modification of an established value chain. That is why companies from other
industries or even small start-ups often step successfully into existing markets with a different or totally new approach.
In 2014 Airbnb, a marketplace for renting lodgings founded in 2012, sold more accommodations as the whole Hilton Group,
founded in 1919.

Benefits of Digital Transformation

CORE Elements & Barriers of Digital Transformation
Core elements of any Digital Transformation initiative would revolve around the following: -
 Customer understanding and integration
 Customer touch points
 Digitally modified business
 Top line growth
 Product Transformation
 Process Digitization and Optimization
 Performance Management
Barriers to Digital Transformation
 Business case identification
 Employee Training
 Short term revenue targets
 Data issues
 Digital skills shortage
 Legacy systems/processes
Many digital transformations fail because employees
don’t support them. People are wired to stay the same
and often struggle with change, even if they see the
potential benefits. The most effective change
management efforts are aligned with the modern,
dynamic business environment.

Digital Maturity Dimensions

Types of Digital Transformation

Types of Digital Transformation Continued…
2. Business Model Continued…
The Roadmap for the digital transformation of business models has five phases.
Digital Reality
In this phase, Digital Reality, the company’s existing business model is outlined, along with a value-added analysis related to stakeholders and a
survey of customer requirements. This provides for an understanding of the Digital Reality for this company along different parameters.
Digital Ambition
Based on the Digital Reality, objectives are defined for the digital transformation. These objectives relate to time, finances, space, and quality.
Digital Ambition determines which objectives should be considered for the business model and its elements. Objectives and business model
dimensions are subsequently prioritized.
Digital Potential
During the Digital Potential phase, best practices and enablers for the digital transformation are established. This serves as a starting point in
terms of Digital Potential and the design of a future digital business model. For this purpose, different options emerge for each future business
model element and these options are then combined and connected in a logical manner.
Digital Fit
The Digital Fit phase looks at options for the design of the digital business model. These options are evaluated to determine Digital Fit with the
existing business model. This ensures that customer requirements are met and that business objectives are achieved. The evaluated options are
then prioritized.
Digital Implementation
Digital Implementation includes the finalization and implementation of the new digital business model. The various options are further pursued
within a digital implementation framework. The Digital Implementation also includes the design of a digital customer experience and a digital
value-creation network, which describe the integration of the new business model with partners. The resources and capabilities are also identified
in this phase.

Types of Digital Transformation Continued…
3. Domain Transformation Continued…
We see numerous industrial companies that have undergone domain transformations. ThyssenKrupp, a diversified industrial
engineering company, broadened its offerings to introduce a lucrative new digital business alongside its traditional business.
The company leveraged a strong industrial market position and Internet of Things (IOT) capabilities to help clients manage the
maintenance of elevators with asset health and predictive maintenance offerings—creating a significant new source of revenue
beyond the core. In another example, a major equipment manufacturer is moving beyond its core machine offerings to
introduce a digital platform of solutions for its client sites: job-site activity coordination, remote equipment tracking, situational
awareness, and supply chain optimization. The company is moving to become no longer merely a heavy equipment provider, but
also a digital solutions company.
The lesson is to recognize the new domain opportunities afforded by new technologies and understand they can be captured—
even by traditional incumbents. Because these opportunities involve re-defining business boundaries, pursuing these
opportunities often involves Strategy and the CEO.

KEY ASPECTS TO REMEMBER
Think fast in terms of innovation
Change is the only thing we can be sure of. Strive for innovation and greatness now in order to stay
competitive.
Go with the trends
When it comes to marketing, the party is happening in the digital world also. Traditional media is slowly dying
while digital media is projected to become the number one channel for ad revenue.
Be a trendsetter, not a follower
Like Britannica. Even if yours is an established business, it doesn’t mean you can’t be an innovator and raise
the bar for others to follow.
Adapt to the new needs of customers
What Kodak has taught us is that if you ignore your customers, soon they will ignore you.
Traditional workplaces are changing
Employees are no longer office-bound. Current pandemic is an example which has shaped the working style.
Flexible workplaces are on the rise, work and important information can be accessed from any place and any
device, making the employees more mobile.

Success Factors in Digital Transformation
• Giving superior customer experience – How we can make life of customer Easier, better, faster? It’s hard to win customer’s
loyalty. You have to give best customer experience.
• Technology Modernization - Up for it. It’s inevitable.
• Operational Excellence – Employee motivation should be on high, get rid of monotonous tasks, which take lot of time to do
manual tasks
• Rapid Delivery – From ideation to delivery
• Data Driven Decision – Data and Digital are 2 things which are in fore front right now. Strategy is based on data now.
• Innovation – Think beyond the box
• Connected Systems – Ensure all systems are talking to each other seamlessly. Customers need to get best experience
irrespective of the various channels used

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Digital Transformation - 2021 Trends, Roadmap, Guidelines

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Digital Transformation - 2021 Trends, Roadmap, Guidelines