Digital transformation is talked about often in board room conversations, with many expecting it to completely revolutionise their business. When people think of digital transformation the things that come to mind are disruptive technologies, acquiring start-ups and adopting digital channels. However, the reality is that digital transformation is much more than just disruption. More often than not it involves incremental steps towards delivering better value to end customers. This article will dispel some of the myths surrounding digital transformation and help business to better respond to digital trends.

Myth: Going digital involves complete disruption of your core proposition

This is a common belief among many managers, which results in many businesses trying to be the next Apple by creating an innovative product that will solve new customer needs. In reality, the needs of customers that companies are trying to solve will be the same as before. Organisations simply need to find ways of addressing those needs with digital tools. This doesn’t mean that there will be no disruption. The world is changing quickly and those that don’t evolve WILL be disrupted by those who embrace digital. It’s important that as a business owner you understand that digital transformation will not alter the reason why your business exists. The key is to simply focus on the technologies that are able to have the greatest impact on customers.

Myth: everything physical will become digital

In many cases, going digital does result in physical infrastructure and inefficient assets being made redundant, however the physical will never disappear entirely. Many businesses are seeing the most success from blending the digital and physical worlds to leverage the advantages of both. This is being seen in retail where shoppers still value brick and mortar stores where they can see and touch products. Many will reserve items online and then come into a store to try the item on and see it in person before committing to the purchase. With this blend of the digital and physical worlds, businesses need to adjust their digital initiatives accordingly to satisfy customer demand.

Myth: to go digital you must buy a start-up

One way organisations acquire new technologies is by acquiring a start-up and their associated IP. This can have its risks, such as destroying the unique culture of a start-up which can result in big talent leaving. One approach companies take is to create hybrid-relationships with start-ups. This enables them to learn and discover synergies with the start-up, while not ruining the culture. The key is to enable the start-up to operate almost as its own independent business. This way the start-up can avoid the bureaucracy and processes that are commonplace among larger organisations. As a result, the start-up can stay true to their mission, while linking it to the larger vision of the organisation that acquired them.

Myth: When we talk digital, we’re talking about technology

A common misconception surrounding digital transformation is that it’s all about technological developments. While technology is definitely involved, it’s important to note that transformation is essentially about better serving your end-users. That can occur in a number of ways, such as more efficient operations, mass-personalisation or a new product offer. In these cases, digital is the enabler for various siloed parts of the business to come together, which involves reorganising people and technology. This can often mean the organisational structure needs to change e.g. moving to a more agile structure to create the capabilities needed to complete digital products. This can empower organisations to resolve business problems quicker, similar to a small start-up. This is a prime example of a digital transformation initiative that does not have technological developments at the heart of it, it’s simply part of the overall process.

Myth: Digital transformation involves getting rid of all legacy systems

Digital transformation often involves overhauling legacy systems, however doing a complete lift and shift of your IT can be risky. Organisations need to find the best way to develop front-end apps and then gradually phase out legacy systems in a more agile manner. This can be done through a middleware interface that interlinks the front and back ends to enable easier adoption of new solutions. Over time you can remove legacy systems while not ruining the customer experience in the process. Break the legacy system problem into modules and phase them out as needed.

Final Thoughts

For the majority of companies, digital transformation is not about completely revamping your business model or proposition. Instead it’s about transforming your business with the right digital tools and finding new business opportunities through digital. The digital transformation doesn’t need to be disruptive or revolutionary, however they do need to focus on the needs of the customer and making your business more efficient.