Digital Transformation Frameworks and How to Implement Them in Hong Kong

Digital Transformation Frameworks and How to Implement Them

​The transition and transformation to a digital frameworks model is one that is difficult to grasp with one concept alone. In fact, in order to have a working understanding of how digital transformation should work, it is essential to compare and contrast a variety of concepts and ideas regarding digital transformation so that you can decide which way is best for your organization.

​The Nine Elements of Digital Transformation

​There are several different theories on how digital transformation should work within the framework of a business.

How it fits in with your infrastructure is up to you. But there are nine distinct elements of digital transformation that should exist when we bring together all of the ideas contained in the digital transformation paradigm.

​1.  Customer Understanding

​The first and most crucial element of this process is to make sure you have an understanding of your customers' needs and wants.

Improving the customer experience (UX and UI) as well as appealing to the devices and multiple channels and platforms they are coming from are critical to this process.

​It is essential to compare and contrast a variety of concepts and ideas regarding digital transformation so that you can decide which way is best for your organization.

​2. Top-Line Growth

​Being able to adjust and expand as you make the transition to the digital platforms is also essential. 

You can achieve this in many ways by transforming your sales literature into the digital format.

For example, rather than leaving a leaflet or flyer, you can leave a video that is digitally sent to customers or B2B partners via a SkyDrive such as Dropbox or on a USB drive.

​3. Customer Touch Points

​These are the critical issues that customers view as significant to the user experience. They can include having 24/7 customer service, allowing customers to access services whenever they need them, and making everything available through automation.

​4. Process Digitization

​By focusing on the process (and not just the products), you can appeal to a wide range of mobile users and digital platform users by creating custom-based automation and AI features that run while you sleep. This not only helps you transform the digital world but keeps customers happy with less workforce.

​5. Worker Enablement

​This has to do with the virtual work environment and the ability to be able to hire freelancers or even regular employees on a contract basis to work from a home office. This scenario saves time and money and also increases the level of specialization of workers.

​6. Performance Management

​Another thing the Sloan Review talks about in this article is the fact that digital transformation must address the way performance is carried out and evaluated.

Since so much is being handed over to AI and automation, it is essential that the people running these programs and highly skilled and know when to step in to ensure the entire process runs smoothly. This should be somewhat easier, though since you are dealing with real data rather than estimated guesses.

7. ​Digitally-Modified Businesses

​Businesses today must move all of their processes to a digital format if they are to survive.

This means thinking less in the "real world" and considering the needs of the online customer. They can still pay attention to their brick-and-mortar business if they have one, but they must always be vigilant to the changes that must be made to accommodate digital platforms and users.

​8. Creating New Digital Businesses

​It's an important point they make here regarding new business startups. Not only do current and established businesses need to transform their business to a digital format, but new startups have to be already thinking about how to make their business operations applicable in the virtual age.

​​Businesses today must move all of their processes to a digital format if they are to survive.

9. Digital Globalization

​The trend toward getting suppliers and procurement processes through a growing global network is growing.

When it comes to the future, most people believe the global system will continue to grow, allowing business owners to expand their operations to include global partners in both the procurement and supply chain operations phases.

​A Framework for Digital Business Transformation

​Before you begin the process of digital transformation, you must calculate the costs, consider the risks, and plan for the inevitable.

It's technology so, let's face it: there are going to be obstacles. The key is to have the best people in place to handle those problems as they arise. Careful planning will get you started, but be prepared to remain flexible and change these plans as you need to when you encounter problems.

Study your strategy and build a framework for digital business transformation before you begin.

​Six Stages of Digital Transformation

​Experts agree that there are six stages of digital transformation. Below are the most important aspects with a description of how it should be carried out.

​1. Identify

​In this stage, business owners should brainstorm how their organization will focus on achieving the change as well as how to carry out normal activities such as customer service issues, communications, and regular job requirements of staff.

​2. Impact

​It is vital to consider the effect that each digital change will make on your organization.

Ramping up your business may be more comfortable once the transformation has occurred, but you should calculate your ROI at every step to make sure you are clear on the cost-to-operate changes.

​3. Ideate

​This is the stage where you should generate new ideas that will help you figure out how to solve the problems as they occur and decide whether each idea is feasible.

Since the process involves so many different people, it is a difficult task and must be thought through carefully.

​4. Innovate

​It is important to remain innovative but remember that it's not all about the technology.

Costs can quickly rise due to the inflated prices, so be sensible and grow as you can afford to do so. Going too fast could cause you not to complete the project at all.

​5. Implementation

​Use your technical team to solve important problems and offer solutions that are practical and simple. Expect problems when you are dealing with upgrading technology and have a plan to address them.

​6. Iterate

​Mark Cuban, a well-known entrepreneur from the "Shark Tank" series, likes to use 12 months to test how a business is doing.

But a six-month period is also reasonable to consider what you need to do to move forward with your processes. Both financial and non-financial aspects must be continuously monitored to ensure success without causing financial distress to your company.

​Compare and Contrast Methods

​There are many different approaches to the process of digital transformation. Experts from every industry have ideas on what it should look like. But only you can know what it will cost your business and how your business infrastructure will need to change to embrace this change.

​Commonalities

​One common denominator in all of these methods involves the way that they stress global supply and procurement as a chief factor of success.

This is, after all, what is driving much of the change:

Companies like Amazon and Apple, for example, are marketing to a broader market every day as well as opening their eCommerce opportunities to other countries around the world. This trend will likely continue as the move toward the digital platform increases.

​Differences

​Some differences in perspectives have to do with the specific methods that should be used to bring this change about.

While some theorists speculate that it is about turning over more of the decisions to AI and automated processes, others worry that giving machines more control over their organization can lead to chaos.

This argument will likely continue as the AI onslaught draws near. But one thing both sides can agree on is that AI is here to stay. In itself, it is not dangerous, but it is the people running them who must be held accountable.

Do your research so that you can see the benefits, similarities, and differences between these different ideas that are included in CMS Wire, as well as Digital Doughnut,
for example.

​The Future of AI and Digital Transformation

​For the company owner, the future looks bright as long as business managers and company owners can open their mind to the future possibilities without fear or bias while guarding the sacred trusts and data that they are charged to protect.

Internet and company security must, as a course of due diligence, follow as the beginning of this new era approaches. We hope never to see the day that all of the decision-making processes are handed over to AI bots. Even Elon Musk says that would be a tragic mistake.

In the immortal words of Steve Jobs, we are going to "Pretend the Universe" and solve the problems together as we go.

Do you want to come along?

​Don't Get Left Behind

​Schedule a free consultation with Visichain to ensure your supply chain and procurement operations continue to evolve and remain competitive in today's dynamic ​environment.

Richard McGirr

Do you need to create value and deliver change in your enterprise?With Visichain as your partner, you can leverage over 1 million hours of supply chain transformation experience from some of the largest companies in the world.Visichain drives visibility, productivity, and efficiency throughout your entire supply chain.Supply chain visibility at scale is essential to your business. Starting with the production of products all the way through free on board receiving, your business needs real-time data to help you minimize risk, drive efficiency, and make better decisions.Visichain designs, develops, and implements powerful yet easy to use software. Powerful solutions crafted to help your executives and supply chain managers leverage multiple data systems to partner with sourcing suppliers in real time.When you're ready to kick your procurement transformation strategy into high gear, send me a message through LinkedIn.