By: Rubén Alí Vallenilla Lugo
February 22, 2021
Technology is once again putting companies at a crossroads, the new wave that can either empower the business or sink it and disappear into the depths of oblivion. This is the so-called “Digital Transformation”.
With an interest very similar to that of the gold rush, today organizations go out in search of data, the new hidden treasure, and an opportunity that everyone wants to participate in. When I say everyone, I mean everyone, there is no discipline or profession or sector that is not talking about Digital Transformation, even if they don't know what it is, but not talking about this topic would seem to be unfashionable, or what would really happen: missing out on something important.
To start with, and this is very important, there is a rumor or misinterpretation circulating that confuses terms and gives a bad idea of what Digital Transformation is, that tries to give the impression that what the company must do is to adopt as much technology as possible, and that it is a requirement to convert everything the company does into digital, even if fortunes are invested for a robot to open the door, instead of the sensor we have always used. Nor is it a matter of having a presence on social networks, or creating creative websites. Without giving it too much thought, this is not Digital Transformation.
What is NOT Digital Transformation?
1. Digitalization
Converting into digital what is currently done on paper or with manual procedures is not digital transformation, this already has a name and it is called digitization. It could perfectly be part of the Digital Transformation, but it could also be a mistake. At the 2016 robotics fair in Madrid, they replaced the typical tickets that you always buy to enter, the ones that look like a movie ticket, or theater ticket, and by the way are more complex than those of a fair as they need to assign seats, and replaced them with Excel sheets, with printing (on huge printers), which made a process of buying and entering that should take minutes take almost an hour, and required many people and apologies, that otherwise would not have been necessary.
2. Social Networks.
Being on social networks seems a must nowadays, so, misunderstood, it seems that it is a mandatory activity to prepare the organization for the Digital Transformation. One of the characteristics of the social network is that it remembers everything, so a bad landing stays practically “forever”, but you could also invest a substantial amount of money to discover that your company is not the company that needs to use the networks as part of its strategy. A heavy machinery brand confirmed after much effort that it would hardly sell a tractor through Facebook (I'm not saying it's impossible), but in addition to losing an investment, it generated an inappropriate image with contests and today an abandoned social account.
3. Web positioning.
The worst thing about talking about Web positioning is that we end up talking about positioning in the search engine Google, thanks to the absolute dominance it has of the network. You will hardly find someone who tells you that you do not need to invest in positioning in Google, and I tell you that it is true, however, you have to be very careful because many give up their own identity to position messages that in the end do not represent them. This activity is NOT Digital Transformation, it helps or could help, but they are later steps.
4. Drones, robots and connected things.
The technologies associated with Digital Transformation are the most revolutionary, the trendiest, and indeed they are, but they are not for everyone. Investing in a robot that delivers pizza and delivers it in almost two hours, with enormous difficulty and a lot of effort does not seem like a good idea, whether or not you talk about Digital Transformation. It is not that it should not be done, but it should be considered if it contributes to the business and mainly, if adding, and adding equipment and technology will help to add value to the customer.
5. Technology for technology's sake.
It is often thought that technology replaces workers and eliminates jobs, but the opposite is true. Incorporating technology in a company requires specialists, new experts in the new technology and in all the processes that are affected. For this reason, including technology simply because it seems new, or because it is technology and you have the wrong concept of Digital Transformation, instead of accelerating the speed of the company, could block it.
What is not digital transformation?
Your presence on LinkedIn, Twitter or Facebook is not synonymous with digitalization. Transformation goes beyond simply having an online business and using your brand image through a website. This new landscape loaded with opportunities entails a complete transformation in the organization and culture of companies in every department. The digital transformation:
● It is not about setting up a CRM.
● It is not computerizing the company's processes.
● It is not digital marketing.
● It is not an online store.
● It is not harassing customers with banners.
It is an undeniable fact that companies, workers and consumers have changed their behavioral patterns. The consumer, whom we want to please, has more and more information, decision-making power and information channels that, until recently, were only available to brands. The customer seeks to be increasingly connected, to interact more and to trust the brand that provides loyalty. To this end, workers and companies are changing technologically and culturally to adapt to new customer demands.
In Digital Transformation, four types of technology can be listed that come together to become more efficient. These are Big Data, cloud, social business and mobility. Transformation is about service value, business model improvement, innovation, differentiation and strengths.
What is digital transformation?
From today and for the next 5 years the customers of most companies will change their habits, consume new products and acquire them in a different way than they do today. The reason is mainly the massive adoption of technology and the improvement of communications, which lead society to a way of consuming in a mobile and social way.
Therefore, Digital Transformation is the process (or set of processes) by which the company adapts its resources and capabilities to offer (and keep offering) products of value for the future needs of its customers. Another, clearer definition could say that Digital Transformation is the process by which the company guarantees its survival in the digital era.
After the definition, it is understandable to understand that digitization is not digital transformation, although it could be part of the process, as long as the company requires it.
Cloud Computing is not Digital Transformation, neither is Mobility or the Internet of Things, however, most companies in their Digital Transformation process will decide to use technologies such as these, which together with Big Data will accelerate their transformation process and improve their chances of success.
About the author
Rubén Alí Vallenilla Lugo is currently IT Project Management and Control Manager at Acorde International, a Venezuelan company specialized in the development of Front-End, Back-End and Mobile Apps in different technologies. He has 31 years of work experience in the banking, telecommunications, services, advertising, process consulting and technology sectors. Knowledge and expertise in analysis and requirements gathering, software quality assurance, IT project management, COSMIC, diploma in information technology management, training and teaching at university and business level. He has a degree in administration, mention in organization and systems.