Page 7 - index

RESEARCH, ANALYSIS & TRENDS

tion of assets and an increased use of technology to mation is actually a step forward to have fully net-
improve the experience of your organization’s employ- worked systems, where already existing solutions are
ees, customers, suppliers, partners and stakeholders”, linked with the new ones to fulfill the promise of getting
he concludes. results from the digital nature of the networking.

Of course, the willingness of all stakeholders - manag- The point is to create the preconditions, so that infor-
ers, entrepreneurs, politicians and academics – daring mation and knowledge within the company can really
to make the change and respond to it, plays a key role, be used. Because although our systems are indeed
besides implementing new technology that enables the already partly digital, they are still not sufficiently net-
economy to create growth and success. worked. This means that it is often still not possible to
get access to information at the exact moment when
Depending on which definition of "digital transformation" insights are needed because of interface problems or
you hear today, you will realize various directions of im- compatibility issues, resulting in media discontinuity
pact and objectives of this development: For one it is all and blockades that cost time, money and cause trou-
about the improvement of process efficiency, the other ble. The digital gears do not mesh - somewhere there
focuses on the reduction of process costs, the third are always a few bits and bytes that are jamming.
sees this as a support for value-added business activi-
ties, and others again are more focused on electronic Therefore, the first step of any company towards the
voting and control of business activities, or the develop- necessary digital transformation is "e-enabling", which
ment of existing stand-alone solutions for companies means making the company fit for the digital future.
through consistent networking. Today, that’s the greatest task the economy is facing. It
starts with the fact that processes need to be digitized
McKinsey defines Digital Transformation as a complex, at all levels. This is not a trivial task, because to digitize
individual systems to create transparency, in order to processes, one must not only understand something
eliminate the company's specific weaknesses or to sup- about computers and software, but of processes as
port their strengths and use them more effectively. well. At the same time, it is necessary to look at the
value chains and to try to become more powerful
The challenge for managers in the digital economy will through unbundling and restructuring, outsourcing and
be to recognize that change is needed in the first place - insourcing. These are not typical IT tasks, but duties of
for the company and its business model - to respond to the top management, because digital transformation is
it accordingly. Those, who can do it the best and fastest, a top priority. Money, cost-effectiveness and cost re-
will be among the winners, while those who are slow will duction, will again be the focus.
go to rack and ruin.
What I want to point out is that digital transformation is
By now, there is no company that has not already been not going to be dominated by young dotcoms and en-
affected in any way by this digital transformation. Big trepreneurs, but by the established players in the mar-
corporations in particular invested a lot of money into ket - the “Old Economy” dinosaurs. There will primarily
"island solutions" - in an expensive website or Intranet, be the large companies that write the great success
eCommerce platform, CRM, e-procurement or demand stories, because “size does matter”. It is simply quite a
chain management. Most of these solutions have been competitive advantage to already have a certain size, a
developed locally by individual departments or special number of customers, and especially specific know-
divisions, forcing companies now to face the truth. It is a ledge on how to make money, which has remained in-
difficult task to connect these islands solutions to each dispensable.◊
other now, so that they finally pay off. Digital Transfor- By Daniela La Marca

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