There are various keys to successful digital transformation that businesses must consider. The key to the success of this digital transformation is deciding the measures that the organization will follow while changing internally and externally.
According to a McKinsey report, more than 70 percent of organizations fail in digital transformation. The success rate of successful organizations undergoing digital transformation varies. Only about 24 percent of organizations thrive because they are digitally aware, while only four to 11 percent of traditional enterprises succeed at digital transformation.
Then, what are the primary determinants of digital transformation success and the strategies that should be pursued by the organization? Here’s a full explanation.
The Importance of Digital Transformation for Businesses and Companies
The digital transformation process is inextricably linked to the deployment of technology, the introduction of new processes, and the optimization of talent skills so that they are ready to compete in the middle of the quick dynamics of business rivalry. Here are some reasons why companies require digital transformation, based on quotes from various sources.
Changing and Adapting
Amid rapid technological breakthroughs, change has now become necessary. Job automation is one of the most apparent improvements in business, as it allows jobs in IT administration, HR management, marketing, sales, and customer support to become more practical and efficient.
Reduce Operating Expenses
Businesses can save time and money by implementing new technology. Businesses can then allocate costs for employing smart devices and Machine Learning to optimize operations. Meanwhile, the employees can focus on growing the business.
Improve Customer Experience
Businesses can improve the customer experience by establishing mobile applications, tracking and responding to orders more rapidly, real-time interactions, and service support through automation. According to Standleys, a shift to a customer-centric approach, along with operational and IT enhancements, can boost customer satisfaction by up to 20-30 percent.
4 Critical Factors for Successful Digital Transformation
According to the Harvard Business Review, having the proper team that can work together and a strong leader who can make a difference is the single most crucial step in digital transformation. Aside from talented human resources, the four essential keys to successful digital transformation are technology, data, processes, and organizational change capabilities.
1. Technology
Companies must be able to swiftly adjust to employing technology when it becomes easier to use to speed acceleration. Three factors must be considered by businesses to ensure the effective use of technology. Starting with implementing self-service technology that can be used by employees and business partners, changing standard operating procedures by incorporating new technology, investing in digital talent, and having leaders who understand digital technology.
2. Data
Companies must have a plan for what data is required today and after transformation in order to obtain high-quality data and analytics. Furthermore, it must be able convince the decision maker to accept responsibility for consumer data. It can then improve work procedures and tasks that assist frontline workers in accurately creating data in order to improve data-driven decision making.
3. Process
According to the Harvard Business Review, digital transformation necessitates an end-to-end perspective, methods for meeting consumer expectations, seamless workflow connections, and the ability to manage departments to be able to grow. As a result, efforts must be made to alter and optimize processes or operational procedures to accommodate the new technology. Individual roles and responsibilities must be redefined in order to clarify the roles and competencies required by the company for the transformation process to go smoothly. During the process, the organization can more clearly plan the enhancement and development of its capabilities and talents.
4. Adaptability
This factor refers to the company’s ability to implement changes that can affect shifts in culture and clear communication patterns. According to McKinsey, digital transformation necessitates cultural and behavioral shifts such as risk taking, increased collaboration, and customer centricity.
When likened to technology as a machine, data is fuel, process is a guiding system, and the ability to alter is the basis. The four factors listed above are critical in enabling businesses to develop digital transformation plans that meet their requirements.
Read More: Digital Transformation: Revolutionizing Industries to Redefining Business Strategies
Examples of a Successful Digital Transformation Journey
The company must have a mature and planned strategy implemented for shifting from the traditional pattern to digital. Several case studies highlight digital transformation initiatives implemented by partners from the three CTI Group subsidiaries. The following are the efforts of three CTI Group subsidiaries in helping three companies operating in three distinct industries with their digital transformation.
Digital Transformation Journey of Kirana Megatara with Central Data Technology (CDT)
Central Data Technology (CDT) is assisting Kirana Megatara, Indonesia’s largest rubber exporting and crumb rubber processing company, with its digital transformation procedures. Kirana Megatara faces issues with all outdated technology, storage services, and infrastructure with an average lifespan of more than ten years.
This is challenging because if one of the devices fails, the information system and manufacturing data processing would cease. This necessitates strategic planning, the installation of information systems, and the monitoring of implementation in compliance with company regulations.
“(In addition to the problems mentioned above), we also have other problems related to the procurement of replacement devices, which can take up to two weeks at most,” stated Hendrik Iriawan, General Manager of Kirana Megatara, as quoted on the CDT website.
In fact, at the time, Kirana Megatara required products and services that met the company’s requirements at affordable costs, as well as sufficient after-sales support to ensure business continuity. Kirana Megatara chose CDT due to the necessity for Disaster Recovery deployment and SAP conversion to the AWS Cloud, as well as references as an AWS Partner.
Meanwhile, the decision to use AWS as a cloud service was based on its capacity to handle the numerous challenges faced by Kirana Megatara. AWS has also established an Availability Zone, which can reduce the possibility of downtime, as well as services and rates that are superior to other cloud service providers.
The AWS adoption process did not go easily at first, especially during the implementation of AWS Elastic Disaster Recovery, which was impeded by management approval. After it was successfully resolved, CDT aided the AWS deployment process by sizing CPU, RAM, and storage resources on the old system to guarantee that the resources used were as needed.
Kirana Megatara discovered several changes and improvements after implementing the AWS solution supported by the CDT team, such as the convenience of monitoring the performance of seven servers in real-time and the running non-SAP server backup process without disrupting the performance of the running servers. Additionally, the cost and annual maintenance budget have been greatly reduced.
Helios Informatika Nusantara (HIN) Case Study
Helios introduces the Helios Mobility Suite (HMS) solution to address client issues about employees’ use of company devices. HMS assists businesses dealing with mobile security challenges and tough device management.
Furthermore, HMS helps to boost the productivity of field workers or sellers. Businesses will have end-to-end solutions starting with the configuration, management, and security of mobile devices as corporate assets.
HMS is a technology that enables Bussan Auto Finance (BAF) to effortlessly and safely manage and maintain thousands of mobile devices. HMS is also a solution that enables BAF to monitor and ensure the productivity of its agents in the field.
In addition to BAF, Jasa Raharja Putera uses HMS as a solution to control the location of mobile phone users and to protect company data. HMS enables Jasa Raharja to view employee’s locations in real-time, collect device information such as battery usage, send messages, and update company mobile applications. The company also has the capability of limiting access to specific applications and automatically blocking OS updates.
Furthermore, BRI Finance employs HMS solutions throughout the organization, from entry-level positions to supervisory positions. HMS assists BRI Finance in increasing security and decreasing data loss within the organization, as well as mitigating risk during distribution and updating corporate applications throughout Indonesian branches.
Mega Buana Teknologi (MBT) Helps RSUD dr. Iskak Tulungagung in Digital Transformation
Mega Buana Technology (MBT) is assisting RSUD dr. Iskak Tulungagung in East Java regarding to digital transformation activities in order to increase patient service quality. This health service is supported by a team of MBT professionals and NetApp solutions in order to give health services in ease.
RSUD dr. Iskak Tulungagung used MBT’s NetApp solution to upgrade and expand its data management system.
The hospital’s ability to convert the management system and increase service performance earned RSUD dr. Iskak Tulungagung the Top Digital Award in the category of Top Digital Implementation. Because of the effectiveness of the digital transformation process, the Ministry of Health has chosen dr. Iskak Tulungagung as a pilot and benchmark for hospital service reform projects throughout Indonesia.
Read More: MBT Dukung Transformasi Digital Pelayanan Kesehatan Di Jatim
CTI Group as a Digital Solution Provider assisting Digital Transformation
It is now time to start the transformation process with a variety of leader solutions from 13 CTI Group subsidiaries. Get the most recent information updates from the CTI Group on breakthrough technology that is presently evolving and will become a trend in the future. CTI Group, with more than 250 skilled and qualified engineers and more than 100 world-class IT brands from 13 companies, ensures that your business functions optimally and the company’s digital transformation process runs smoothly and efficiently. Please check the following page for more information about our digital solutions.
Author: Ervina Anggraini – Content Writer CTI Group
