Digital transformation as a success factor: challenges and fields of action
Read about the challenges and fields of action of digitalization in this article
Digitalization or digital transformation is now considered a key success factor for future-oriented companies. The potential of the internet and digital media has a long-term impact on the strategy, structure, culture and processes of every company. Digital business transformation enables them to master the challenges of the digital age and open up new business opportunities.
"Radical innovations and disruptive business models" [1] are therefore attracting increasing attention. Start-ups with innovative business ideas, so-called FinTechs, are developing into serious competition for established companies. Digitalization is a topic of discussion among futurologists, renowned consultants and at CeBIT 2015 [2]. Digital strategies are being developed and pursued in all sectors, be it Industry 4.0 or Banking 2.0 / 3.0. [3]
Established providers often initially negate the chances of success of new markets due to the initially manageable market volume. However, these markets can often show strong growth and completely or partially displace existing markets or products and services. [4] Traditional companies, such as Kodak, Neckermann or Nokia, which did not take digitalization into account in their strategy at an early stage, then find themselves increasingly under pressure.
Are these trends particularly prevalent today? The traditional understanding of customers, business relationships and value chains is undergoing profound change. With the increasing development from a seller's to a buyer's market, customer demands have risen steadily due to the increasing transparency of information. Advances in technology mean that innovations can be realized faster and faster. What was barely conceivable yesterday will be indispensable tomorrow.
This increase in speed places high demands on the strategy and business models of the stakeholders involved. So what is important? According to a recent study, the success factors of digital transformation lie in the following fields of action: [5]
Strategy: Anchoring the digital transformation in the corporate strategy
Leadership: Involvement of all company divisions and managers in the implementation of the digital strategy, commitment from top management
Products: Definition of the core elements of the value proposition
Operations: driving forward digitalization in the core processes
Culture: Establishing a flexible innovation culture that accelerates change
People: Creating motivational incentives and scope for further training
Governance: Setting digital goals and making the new strategy measurable
Technology: Modernizing IT landscapes to support digital strategies
These fields of action apply to financial service providers such as banks and leasing companies as well as solution providers. As a full-service provider, afb Application Services AG works with partners in the financial sector to optimize their (digital) innovative strength. This is how we master the challenges of digital transformation together.
1 Top topic at CeBIT 2015 and current discussion by Hans-Martin Kraus / Bernd Richter: Radikale Innovationen und disruptive Geschäftsmodelle, in: die Bank 12/2014, p. 67-69.
2 Infographics on the top trends of datability, big data, cloud, mobile and social business can be found at www.cebit.de/de/news-trends/trends/
3 Cf. E.g. Brett King: Breaking Banks: The Innovators, Rogues, and Strategists Rebooting Banking, Singapore 2014
4 Fundamental to this: Clayton M. Christensen: The Innovator's Dilemma. Warum etablierte Unternehmen den Wettbewerb um bahnbrechende Innovationen verlieren (The innovator's dilemma, 1997), Munich 2011
