Digital Transformation is a Must for the Information Technology Industry

When businesses and the way they operate shift from their traditional mode of operation and management to the modern and technology-oriented ways, the transitions referred to as Digital Transformation or disruption. Since change is the only thing constant, digital transformation has become imperative for all businesses, small, medium and large. Be it automation, logistics, software, retail or medical — digital disruption is omnipresent. Delivering a good digital business experience to customers and employees requires the use of new innovative business applications.

Digital transformation is not just about embracing new technology, it is about a change in thought and organization culture. There is a need for organizations to address the change in business scenarios, dynamic business demands and innovate ways to quickly cater to these changing needs. Leaders and IT teams in any enterprise should work hand in hand to meet the business requirements, drive innovation and march towards continuous improvement. This is what digital transformation is all about — accelerate business activities, lower cost, improve time to market, and bring about a positive change in processes, people, and competency models. Digital transformation is also sometimes referred to as business transformation. In fact, some prefer to use the term digital business transformation, which is more in sync with the business aspect of the transformation.

Foreshadowing the future of information technology, IT is ascending from back-office function to strategic enabler. Driving its rise, customers expect traditionally non-tech companies – such as personal banking – to provide rich digital services seamlessly across devices. Enabling its rise in response, IT teams are rapidly adopting new processes to help their companies deliver an expanding array of digital products. Summarizing the changing role of IT in a recent Wall Street Journal article, WalMart CIO Clay Johnson noted, “You’re starting to see IT become a strategic, competitive advantage for the company.”

Clearly, there’s a push away from legacy businesses and towards newer digital technologies, following the leads of their clients, with analysts and outsourcing experts making dire forecasts for the laggards. “Those that fail with digital and AI they will get caught in a commodity rat-race where margins get squeezed and growth flatlines. They will get caught in a race to the bottom,” contends Phil Fersht, CEO, HfS Research, an outsourcing advisory

Delivering against this expectation, CIOs face the combined challenge of maintaining stability in legacy systems, while rapidly developing new products from a dizzying array of technology options. For CIOs with traditional enterprise IT backgrounds – where product development spanned months instead of weeks – the new mandate surely feels like being pulled in two directions. And although no empirical evidence yet exists for increased CIO turnover, the pressure has undeniably increased. Yet, for CIOs willing to adapt, and given the resources to do so, a new era of unprecedented influence awaits. Indeed, according to the CIO of Micron Technologies, “It is a great time to be a CIO. IT, as a discipline, has emerged to being a business weapon. Never before has this role been as important inside businesses… you are a party responsible for driving and enabling the company’s business strategy. The opportunities are endless.”