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Overcoming Key Challenges to Obtain a Excessive Degree of Market Worth with Digital Transformation


digital transformation

By Mostafa Sayyadi & Michael J. Provitera

Within the digital economic system, leaders should extra successfully execute methods that facilitate the implementation and funding in digital applied sciences in the event that they count on to succeed. Efficient execution of those methods requires the options we’ll point out on this article. These options come from our consulting expertise as senior administration consultants in lots of giant organizations in addition to our archive of analysis from eight nations. Corporations could make their digital transformation simpler with these options.


The strategic management of digital transformation is likely one of the most necessary points that organizations are dealing with in the present day. 1 2 Immediately’s economic system is extra digital than ever, and organizations are taking up a brand new that means. 3 4 Digital expertise helps many organizations clear up their problems with cyber safety and operational danger administration. The query stays that the digital funding in expertise could trigger costs of services and products to extend? This can be true at first, however the digital divide is right here to remain, and investing in digital services and products will exchange to analog techniques of the previous. Subsequently, the primary shift within the group’s technique to reinforce this transformation is to maneuver in direction of lowering prices and rising income via funding in digital applied sciences. 5 6 Our consulting expertise in lots of giant organizations in 2020, 2021, and 2022, in addition to our archive of analysis from eight nations (Australia, China, South Korea, america, and 4 European nations), tells us that there’s a important relationship between profitability and the quantity of funding in digital expertise. Many management improvement periods are constructed round new techniques and higher and extra improved methods of conducting enterprise. As organizations improve their funding in digital expertise, finally, their market worth will develop more and more. Organizations that focus solely on profitability with out contemplating the significance of investing in digital applied sciences obtain a decrease market worth in comparison with their rivals. 

The Logical Causes

There are a number of logical causes behind this important relationship between the market worth and funding in digital applied sciences. The primary cause is that with the expansion of digital applied sciences, organizations obtain a stage of complexity that can trigger the competitors to be unable to mimic them. This acts as an necessary strategic flank for organizations to realize a excessive stage of aggressive benefit. 7 8 9 Second, the implementation of digital expertise tasks for organizations acts as a urged try to cut back prices which, if introduced, provides a bounce up on the inventory worth quickly. 10 11 12 Organizations that implement digital applied sciences with in depth funding have a better potential to cut back prices in comparison with different organizations. For instance, our consulting expertise, in addition to our analysis in eight nations, exhibits that many profitable organizations in East Asia, particularly in nations resembling South Korea and China, use the digital transformation technique as an necessary weapon within the competitors with American, Australian and European organizations. They drastically scale back prices and improve the revenue and market worth of their organizations. Korean and Chinese language organizations have introduced the implementation of digital expertise to a stage of optimum efficiency that may decrease the time between the product improvement cycle and the administration of the relationships with prospects and the availability chain of products and companies. This finally provides to the move of money extra shortly of their organizations. 

The Options

Our expertise as senior govt management consultants suggests a number of options: First, we advise that organizations design and implement an built-in info expertise system that permits the group’s departments and workers to speak with one another everywhere in the world. On the similar time, this built-in and in depth system, which has led to the expansion of complexity and aggressive benefit of the group, has additionally decreased the probabilities of rivals imitating them. 13 14 As well as, this organizational design additionally supplies an necessary position for the expansion of innovation by sharing concepts and communication. 15 A profitable instance of this built-in info expertise system could be seen in Alibaba, which in comparison with a lot of its worldwide rivals resembling Amazon, has reached an incredible stage of price discount and modern development. The second suggestion is to make use of new undertaking administration strategies and design an organizational tradition that’s appropriate for this digital transformation of organizations—a Degree Three Management. Jim Clawson cash the phrase that stage three management focuses on imaginative and prescient, goal, values, tales, music, and symbols. Coaching and improvement of human assets also needs to grow to be an inseparable a part of the strategic administration of organizations. Working collectively Strategic Human Useful resource Administration can bridge the digital divide. Our second proposal is just too most the position of digital applied sciences within the provide chain and communication with prospects in order that prices could be decreased as a lot as attainable. Organizations resembling Walmart, Goal and Kmart Australia have mastered the availability chain relationship and can solely work with distributors that may meet their expectations. The subsequent suggestion is to coach energetic human useful resource professionals within the info expertise sector with administration and enterprise strategies in order that the utmost attainable end result could be achieved on this mixture of data expertise with the availability chain and communication with prospects. We suggest Jim Clawson’s e book titled Degree Three Management revealed by Enterprise Professional Press.

In Conclusion

Senior managers and enterprise leaders are extra necessary than ever in the present day they usually should concentrate on the significance of digital applied sciences and the very important position of methods that may facilitate the implementation and funding in these applied sciences. On this article, we’ve got proven that to handle new challenges and obtain a better stage of efficiency and aggressive benefit in comparison with rivals, senior leaders ought to begin implementing methods that facilitate digital transformation. This, we really feel is a secret weapon of aggressive benefit in in the present day’s digital economic system. Profitable execution of those methods additionally requires the options we’ve got revealed on this article for senior managers and enterprise leaders.

This text was initially on 22 January 2023.

Concerning the Authors

Mostafa SayydiMostafa Sayyadi, CAHRI, AFAIM, CPMgr, works with senior enterprise leaders to successfully develop innovation in corporations, and helps corporations – from start-ups to the Fortune 100 –succeed by bettering the effectiveness of their leaders. He’s a enterprise e book writer and a long-time contributor to HR.com and Consulting Journal and his work has been featured in these top-flight enterprise publications. 

Michael J ProviteraMichael J. Provitera is an Affiliate Professor of Organizational Habits at Barry College in Florida, an writer of the e book titled “Mastering Self-Motivation” revealed by BusinessExpertPress.


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