Digital Transformation
Published on : Thursday 01-07-2021
Some relief on the Covid front as the second wave appears to be on the wane, and the vaccination drive has gathered steam. But the worst is not over, and experts are warning of the third wave, especially given the fact that protocols are often not observed sincerely. A recent survey has indicated that mask compliance remains low in India despite the lethal wave experienced recently. The survey received over 33,000 responses from citizens located in 312 districts of the country. According to the findings, even at the vaccination centres, mask compliance was poor, with many reporting family members got infected within days of getting vaccinated. A greater sense of responsibility from all citizens is the need of the hour, but the reality is often far from the ideal.
In an ideal world, by now most companies should have implemented digital transformation in their businesses and reaped the benefits in terms of improved productivity and optimised processes. The fact that they have not, is not really surprising because most digital transformation attempts fail, at least in the initial attempts. A study released by Boston Consultancy Group in late October 2020 indicated that only 30% of digital transformations met or exceeded their target value and resulted in sustainable change. Another 44% created some value but did not meet their targets and resulted in only limited long-term change. A final 26% created limited value (less than 50% of the target) and produced no sustainable change.
The study examined numerous factors that impacted the way companies went about the process of implementing digital transformation. These included commitment, strategy, approach, governance and resourcing. At the end of the assessment, it identified six essential success factors that can be briefly summarised as: an integrated strategy with clear transformation goals; leadership commitment from CEO through middle management; deploying high-calibre talent; an agile governance mind-set that drives broader adoption; effective monitoring of progress toward defined outcomes; and, investment in a business-led technology and data platform.
The Cover Story this month is on the theme of Digital Transformation and the many challenges companies are facing in adoption and implementation. When the concept of Industry 4.0 was propagated a decade earlier, the idea was to promote digitalisation as a means for streamlining procedures, optimising production processes, and above all reducing costs. The initial years brought to the fore the hurdles in terms of breaking the silos and getting the top management to accept the change. In recent months, the pandemic has acted as a catalyst for digital transformation and there is greater appreciation of the benefits. The Cover Story has eminent technocrats putting forth their views, and a wide selection of articles complementing the theme.