Although technology investments are expressions of experimentation, digital transformation is not just about technology.
What business owners should understand is that disruption within their industry may be different from other industries. It may be as much about customer interaction and interface as it is about transaction or supply chain and information management.
To fight digital disruption businesses can’t simply implement an innovative technology and call themselves digital. They should be asking themselves two questions;
- How modern technologies and trends are changing their companies and markets.
- How they can develop the capability to guide their business through not just one change but many digital and technological changes over time.
We have outlined four factors to act as an effective guide to developing the capability to transition and thrive within an industry undergoing digital disruption.
Stay secure
AON’s 2019 Global Risk survey showed that for the first time the rate of change has made the top 10 list for ANZ companies in risk associated with operating in an increasingly digital world.
The fast pace at which digital change is happening needs to be matched equally by security systems and software to protect data.
Considering new technology platforms and accessibility, risk management approaches need to be flexible to meet different risks in real time.
This requires an active risk-based approach featuring enacted control policies, robust defences, constant monitoring, and effective training.
Be responsive
Businesses that identify contemporary trends, build value through smart investments in technology, and minimise losses can profit from digital disruption.
This requires agility and capability to act from the highest level within the business. Business owners can flourish by capitalising and creating a culture that values innovation and responds to change.
Automate & utilise software
Digital innovations offer opportunities to reduce costs and innovate through information sharing, increased flexibility, and customisation to remain competitive in a digitally disrupted industry.
With new internal collaboration and communication tools, businesses can lessen the barriers to knowledge sharing among staff to unlock productivity and foster a strong culture of teamwork.
Businesses can tap into new working models by providing more flexible working arrangements. This allows for greater autonomy for employees and reduced overheads on office space and devices.
Businesses should explore whether they can use innovative or customised technology solutions that suit their work process or fit them financially. They can reduce the steps needed to complete a task but may create additional management tasks and so should be used selectively.
Cloud
Cloud computing is tightly intertwined with digital business. If implemented correctly, cloud computing can drive down costs, deliver value and create opportunities for innovation, allowing SMEs to keep up with larger organisations.
It removes some of the most significant risks associated with a digital world and shifts many responsibilities away from the business such as infrastructure, maintenance, and write-downs as they become outdated.
Leading service providers are specialists at hosting clouds for SMEs to deliver a streamlined cloud experience.
Any and all digital trends have the potential to be disruptive to your industry and your business unless you plan accordingly and invest in your business to enable mobility for future change.
