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Many business leaders agree that technology transformation is essential to adapt to future challenges and meet strategic growth goals. According to a Deloitte study, 85% of CXOs have accelerated their digital maturity strategies since the COVID-19 pandemic.
This transformation involves harnessing new technologies, operations, and cultural shifts to drive innovation, improve efficiency, and satisfy the voracious digital appetites of consumers.
However, digital transformation strategies must not always be about just technology. It is important to implement the need for strategic approaches tailored to the organization's unique needs and goals.
Here are some technology transformation approaches that have proven effective in driving successful digital migrations.
Making data-driven decisions and prioritizing customer satisfaction is essential. organizations must understand that their success depends on how well they treat customers. Customer centricity must be evident in tech transformation strategies. A McKinsey report shows that 70% of technology transformation approaches fail to meet their goals because they lack a customer-first approach.
Established companies trying out AI-readiness strategies often face stiff competition from new digitally advanced companies. These agile businesses have a clear edge - they have implemented digital solutions from the beginning and are unburdened by legacy systems. In comparison, older companies may leverage tech transformation merely for parity with peers instead of striving for a competitive edge.
A customer-centric approach at the center of your tech transformation also allows you to cut costs and increase revenues exponentially.
Consider Airbnb, Spotify, or Uber. These companies formed their tech transformation strategy around data about their customers’ personalized experiences. This has propelled these companies to become some of the most successful in the world.
Many CIOs agree that tech transformation is complex because it requires the organization to overhaul its DNA and business model. Furthermore, the COVID-19 pandemic forced CIOs across industries to undertake their digital transformational journeys, and many best practices and experiences have been born out of their experiences.
One such best practice is applying agile frameworks and principles across a company’s digital implementations. Work with cross-functional teams to break the tech transformation initiative into shorter iterations with a testing-and-learn process for each stage. This way everyone from the C-suite to the junior desk can participate in the AI-readiness strategy and ensure it aligns with the realities of the business environment.
According to IDC, by 2027, 75% of market leaders will implement systemic, structured, and technology innovation programs to support continual innovation, facilitate expansion, and enhance agility. However, arriving there requires aligning their digital maturity initiatives with the business’s strategic goals.
While this may sound obvious, companies must take this fundamental step to ensure the transformation succeeds. In many unfortunate scenarios, the CTO and their team are siloed independently, leading them to focus on tech rather than business problems.
Businesses must harness technology effectively to remain competitive and succeed in the digital world. Regardless of the technology transformation approach a company takes, it needs a holistic approach involving a strategic reorientation of its business operating model.
