For many years technology has played a critical role in improving both the efficiency and accuracy of processes through automation. Now, as technological capabilities continue to evolve, it is becoming more pervasive in all industries. The result is “Digital Business” and its exponential increase in the pace of technology-enabled products and services that impact us in most areas of life. Here’s more information about digital business transformation and the importance of portfolio management.
Gartner defines “Digital Business” as the creation of new business designs by blurring the digital and physical worlds. It promises to usher in an unprecedented convergence of people, business and things that disrupts existing business models – even those born of the internet and e-business eras. 1
The shift to being a digital business is about delivering enhanced customer experiences that drive sustainable competitive advantage. Whilst a digital business transformation requires technology, it must not be seen as an “IT Program”. A successful transformation starts with a digital vision, a culture of innovation, a willingness to embrace change, and acceptance of new business models that provide a platform for the digital business. Organisations must operate in an ecosystem, with partners and customers, creating new opportunities for collaboration and co-operation that deliver value for all.
According to Forrester report Kick-Start Your Digital Business Transformation, organisations need to enhance their digital customer experience while also driving agility and efficiency through digital operational excellence.” For most firms, the journey toward digital business demands significant transformation over a number of key dimensions including culture, developing a digitally savvy organisation, creating an innovative technology strategy, and establishing insight into customer-centric data and metrics. 2
Digital businesses must be built to achieve sustainable competitive advantage. They will need to be both agile and responsive whilst remaining resilient. As the fate of the 21st century enterprise becomes inextricably intertwined with technology; the IT organisation must expand its capabilities beyond operational excellence, and take a new role in defining and enabling strategy through innovation and business agility.
Organisations must have an adaptive process to analyse and make shifts in their investment portfolio while ensuring resources available to meet strategic objectives – the right portfolio management software is the secret ingredient. Companies need efficient portfolio management practices over transformational programs and projects – at the heart of IT, product development, and at the enterprise level. Business transformation and the creation of new products and services can only be achieved through change initiatives where the investment decisions have been made intelligently, resources are assigned optimally, and portfolio performance is monitored intently to identify opportunities to kill products early to pave the way to successful delivery and business outcomes.
What are your thoughts about digital business transformation? Share your thoughts by leaving a comment below.
1 Digital Business: Digital Humanism Makes People Better, Not Technology Better. (2015).
2 Gill, M., Wigder, Z., & Causey, A. (2014, March 26).
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