Why companies are prioritizing digital transformation 2.0?

Digitization is no longer a buzzword in today’s business environment as more and more enterprises have started thinking beyond this. As at some point companies will achieve their digital goal, they need to invest in a continuous cycle of innovation in the existing operations of their platforms. Businesses are already on the way to digital transformation leveraging advanced digital technologies to stay ahead of the game. Now, most forward-looking companies are talking about digital transformation 2.0 – a continuing approach to analyzing new technologies, improving digital footprints, and adopting new business models at an increasing rate.

Enterprises with next-generation operations always push hard to bring new, innovative technologies like automation, big data, blockchain, and others, across their multiple functions. They always seek to explore and enter new markets to ensure sustainability and create new revenue streams. Some of the largest organizations in the world understand the concept of digital transformation 2.0 and have already prepared and designed the germane business models.

This next step to digital transformation 1.0 significantly demands more resources. Although this may be seen as a burden when it comes to bringing it to the surface, it is absolutely essential given the exponential rate of a technological shift. Companies like Amazon stepped towards this model. The e-commerce giant has launched a store without checkout counters or cash registers, named Amazon Go. On the other side, pizza delivery company Domino’s started delivering pizzas with drones in a pilot project in New Zealand. Also, factories have started deploying smart robots. And banks are turning to full digital banking model, delivering improved customer experience.

Narry Singh, Managing Director, Accenture Strategy, Digital Strategy noted that the key to success over the next 5-10 years will lie in changing organizational structures and instilling a ‘digital mindset’ in leadership teams. Organizations need a strategy for a digital era, rather than a digital strategy. They must create new structures and incentives, find ways to attract talent, work with third-party partners, and move beyond an organizational mindset that fetishizes owning everything. In short, businesses must become digital from the inside-out.

Stepping into the Digital Era

In the current scenario, businesses around the world have been disrupted severely induced by the COVID-19 outbreak. This is the perfect time for companies to prioritize digital transformation 2.0, where the new normal will be much more realistic, pragmatic, and focused on impact. This will address what was lacking in the digital transformation 1.0, especially considering its unfortunate track record of success.

Following the ongoing business ecosystem, the future seems to be about fluidity, agility, and clear accountability to business stakeholders. However, removing all the unnecessary complexity is a crucial step to meet the market dynamism. Hence, digital transformation needs to focus on holistic innovation around the core business to drive growth for the various core market verticals.