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The five facets of digital transformation

Zafirah Salim | Feb. 22, 2016
IDC has developed a framework called the Digital Transformation MaturityScape to help business and IT leaders understand and cope with the challenges and opportunities of DX.

According to IDC's APeJ DX MaturityScape Benchmark survey, which polled 13 countries across the region, majority of organisations are still in the early stages of the DX journey, specifically in Stages 1 (digital resisters) and 2 (digital explorers).

Nonetheless, leading organisations in APeJ are making DX their highest priority and embarking on DX projects. These organisations are also placing increased focus on connecting people, assets and things to future-proof themselves, improve decision-making, and use data as a competitive advantage.

In terms of relative country maturity, the survey revealed that the leading countries in APeJ are Australia, New Zealand and Singapore, followed by Hong Kong and Korea.

According to Jimenez, the DX landscape in Singapore is very interesting. "Although digital disruptors and transformers are still a minority of the companies at large, the pace of transformation is accelerating. In fact, the largest proportion of DX thrivers in Singapore are in Stages 3 (digital players) and 4 (digital transformers). However, most organisations are generally still in Stage 2 (digital explorers)."

Five facets of DX

IDC believes that businesses must rethink every aspect of their strategic direction on a continuous basis. As such, it has developed a framework called the Digital Transformation MaturityScape to help business and IT leaders understand and cope with the challenges and opportunities of DX.

The journey to becoming a 'digital enterprise' is multifaceted and consists of five critical dimensions:

1. Leadership transformation - "Successful DX simply cannot take place without effective leadership. In order to change or transform anything, leadership is critical - without leadership, there will be no changes made in the company," said Jimenez.

This 'leadership' refers to the ability to develop and execute on a DX vision and strategy, which is a skill that most traditional leaders lack. Leaders have to lead an "outside-in" business environment, which means opening up the innovation process to the entire ecosystem - including customers, employees, partners and subcontractors - with the ultimate purpose of altering the customer experience.

2. Omni-experience transformation - According to Jimenez, this is a very important area of DX and a dimension that is seeing the most investments from businesses today. When embarking on a DX journey, many progressive organisations start with omni-experience transformation because they want to improve customer engagement.

"People tend to think that omni-experience is all about omni-channel but this is not entirely true," explained Jimenez. "Omni-experience transformation refers to the ability to continually attract and grow loyalty with customers, partners and employees by creating interactive experiences."

For this dimension, business leaders need to adopt an "ecosystem-first approach" in delivering products and services, he added. They need to consider the entire ecosystem and ensure that all the different players are aligned towards the same goal because they also act as a "brand ambassador" and a "customer touch point".

 

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