In order to succeed in today’s digital age, companies need to be able to continuously evolve their processes and products. Digital transformation isn’t just a buzzword; it’s now become a crucial process for businesses to retain their competitive edge. However, without the right guidance and expertise, organizations embarking on this journey can fall into the same mistakes that have derailed others before them. In the banking industry alone, an astounding $6.5 billion was invested in unsuccessful digital projects and programs just last year. Even with projects that were successful, almost half of them were either delayed or came in well over budget.
While digital transformation may seem daunting, we can learn from these previous pitfalls to create a better way forward. Here are five pathways that companies can take to successfully navigate this journey.
1. Commit to a strategy that’s right for your business
For a lot of project teams, it’s important to establish that their digital transformation efforts are aligned with their operational needs. As tempting as it may be to do what your competition is doing, it may not be what’s right for your business. You have to commit to a strategy that capitalizes on your specific strengths and weaknesses. By focusing on areas where digital solutions can have the most significant impact, you can drive innovation, enhance customer experiences, and gain a competitive edge in the market.
2. Set the right expectations for your digital transformation
There’s a common misconception that making the shift to digital will be a quick and easy experience. However, the reality is that without proper guidance from experts, this process can introduce significant challenges and setbacks. Setting realistic milestones is crucial because many programs fail to launch due to stakeholders’ unmet or unrealistic expectations of the project.
3. Think about what processes need to change to support what you’re developing
It’s crucial to align your technology with your processes for a successful digital transformation. Many programs fail because they either focus solely on technology or business, neglecting cross-functional collaboration. Think about the operating models and organizational shifts that have to be reevaluated in order to enable your digital ambitions. Don’t overlook the need to change processes to support new technology, and vice versa.
4. Overinvest in culture and enabling people
As much as the technology used is vital in this transformation, the people who will be in charge of spearheading this project are just as important. You need to think creatively and resourcefully, not idealistically, about the kind of talent that will be in charge of these efforts. This involves upskilling your workforce, especially since much of this technology is new. It’s crucial to develop this capability internally, understanding that the technology may still be evolving and not fully mature.
5. Choose the right partner
Don’t let talent be one of the reasons that your digital transformation programs run into roadblocks. It’s beneficial to supplement your efforts with third-party providers who have extensive experience in executing the kind of solutions that you aim to develop. While this process may be new to your organization, partnering with experts can help you avoid the challenges that have affected others who have made the same shift.
Once you’re ready to begin with your digital transformation journey, it’s best to start by partnering with a company that fits all the criteria mentioned above. If you’re still looking for the right kind of partner that can handle all of your digital business needs, regardless of scale and requirements, then look no further than Pointwest.
HOW CAN YOU START YOUR DIGITAL TRANSFORMATION JOURNEY?
Your ideal partner should be equipped with the tools necessary to propel your business forward. Through our established track record and expertise, Pointwest is able to empower our clients to successfully navigate their digital journey. Our solutions are designed to take their business from Point A to Point B at the speed of digital.
We’re committed to helping organizations transform their operations for the future and unlock new opportunities for growth. Our digital solutions ensure that our partners are able to reap the benefits of new technologies and revolutionize the way their business operates.
Get in touch with us today to learn more about how we can help you achieve your digital transformation goals.
In today’s fast-evolving technological landscape, staying relevant and offering impeccable services to customers demands that businesses keep pace with innovation. Adapting to change not only mitigates the risk of becoming obsolete but also positions a company for success in a dynamic market.
The imperative to modernize arises from the pressing need to align legacy systems with new business demands, a process that demands time and effort. Embracing modernization becomes paramount for businesses, particularly as clinging to outdated systems built on antiquated technology exposes them to avoidable risks such as higher maintenance costs, lower performance, profit losses, cybersecurity vulnerability, and sensitive data loss. By undertaking this transformation, businesses effectively reduce potential losses and pave the way for accelerated innovation.
Modernizing a company’s systems yields a plethora of advantages, each contributing to a positive transformation of the business landscape. While this list is by no means exhaustive, here are several compelling arguments in favor of modernization.
1. Enhanced Efficiency
The adoption of modern systems empowers businesses to employ advanced automation in their operations. By automating manual processes and streamlining workflows, valuable time and resources are saved, ultimately boosting productivity. Furthermore, modernization equips organizations to seamlessly integrate emerging technologies and tools as they emerge.
2. Optimized Costs
Legacy systems often entail substantial maintenance costs, frequent breakdowns, and steep operational expenses. An example is the Government Accountability Office in the US reported that about $337 million is being spent on the maintenance of the federal government’s 10 legacy systems annually. Due to the large codebase and complicated functionality of the legacy software, updating or changing something within the system requires more financial and time resources than modern software. Modernization presents an opportunity to consolidate infrastructure, embrace cost-effective Cloud-based solutions, and leverage automation to optimize resource allocation and utilization. These efforts translate into significant long-term savings.
3. Data-Driven Insights
Modern systems facilitate comprehensive data collection, analysis, and reporting. Advanced analytics tools and business intelligence platforms enable businesses to harness data-driven insights, identify trends, and derive actionable information. Armed with these insights, organizations can formulate strategies to outpace competitors.
4. Scalability and Flexibility
A perennial challenge for legacy systems is adapting to evolving business needs and increased workloads. Modernization equips businesses to scale effectively for growth and efficiently manage higher demands. With flexible architectures and Cloud-based solutions, organizations can swiftly respond to market shifts, expanding or contracting as required.
5. Better Accessibility
The advent of modern systems and Cloud-based solutions liberates businesses from dependence on on-premise infrastructure. Teams gain the freedom to access information anywhere, anytime, using their preferred devices and hardware.
6. Easier Collaboration and Integration
Alongside improved accessibility, modern systems foster seamless collaboration among teams, departments, and external stakeholders. Real-time information sharing enhances productivity, reduces task turnaround times, and promotes cohesive project execution. Modern systems boast interoperability, enabling harmonious integration with other tools and systems.
7. Robust Data Security
As technology evolves, so do cyber threats. According to a report by the National Defense College of the Philippines, cyber attacks in the country rose to 31% in 2021 compared to 24% in 2020. In early 2023, some government bureaus experienced hacking and data breaches. Modern systems arm businesses with advanced security features such as multi-factor authentication and cutting-edge encryption technology. These measures counter the security vulnerabilities frequently associated with legacy systems.
Modernizing legacy systems often necessitates data migration, architectural restructuring, and reimagining business processes with contemporary technologies. However, it’s important to note that coexistence between legacy and modern systems is feasible in some cases. Expert consultation is crucial for assessing, analyzing, and determining which components of a business system warrant modernization.
Ultimately, the unequivocal benefits of modernization empower businesses to deliver superior experiences to customers, employees, and stakeholders alike. By embracing and harnessing the latest technologies, enterprises gain a competitive edge that enables them to flourish in a rapidly evolving market landscape.
For inquiries, contact us at ask@pointwest.com.ph
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