Looking for breakthrough innovation, advanced operating efficiencies, or a better customer experience? Check out this primer on digital transformation by consultant John Mack. He helps define the term (using technology to drive large-scale change in organizations and generate business value) and describes the many ways it can benefit an organization. Most importantly, he discusses how and why it fits into our current environment. If you want to hear from John directly, check out the video below.
Digital transformation: it’s a term that comes up often when business leaders discuss technological innovation, cost savings and growth. But the term itself is somewhat vague; what does it actually mean?
Quite simply, digital transformation is the process of using technology to drive large scale change in an organization to generate business value. It involves applying software and software-centric solutions to business capability areas, operational processes, and market offerings to generate tangible business value.
This business value can take the form of profitable growth, such as increased revenue or reduced cost of goods sold or reduced operating costs, capital efficiency or even risk mitigation.
Why is it important for organizations to consider undertaking digital transformation initiatives? Digital transformation reorients the ways that an organization operates and changes the portfolio of products and services that the organization offers its customers. These changes create new sources of business value by improving existing capabilities and processes, creating newcapabilities and processes and identifying and driving efficiencies. Any one or more of these actions creates business value, and also has the potential to create competitive differentiation, which can generate sustained business value creation over time.
But how should organizations think about prioritizing digital transformation initiatives during an economic downturn and a time of high interest rates (especially since these initiatives can apply capital investment or operating expense)? It is hard to make an argument against the benefits of revenue growth, cost efficiency, capital efficiency or risk reduction whether the economy is growing or contracting. In an economic downturn these factors become even more important than in high growth times.
Finally, what are some good ways for leaders to objectively inform themselves about digital transformation and decide if it makes sense to undertake a transformational initiative. Fortunately, digital transformation is not a new concept even though the technologies themselves are constantly evolving there are many examples of successful digital strategies and transformation initiatives in the press. Management consultancies have also organized formal practice areas around digital transformation, and they can provide advisory services. Kissinger Group and Aptos Partners are two boutique consultancies that offer these services, and we recently published a joint white paper on this topic. Contact us at info@kissingergroup.com if you’d like a copy of the white paper.
Meet The Author
John Mack, of Aptos Partners, is a seasoned go-to-market and strategy management consultant, focusing on enterprise technology solutions that create tangible business value. Specific areas of expertise include structured innovation, technology domains, and corporate and private equity M&A.
His career has included senior roles at Accenture and Deloitte, as well as leadership positions with Amazon Web Services, Honeywell, Morgan Stanley, and other top-tier firms.
John served as a Captain in the US Army before earning an MBA from Duke University A lifelong learner, he is a Six Sigma Black Belt and received Level 2 Sommelier certification from the US Sommelier Association.
