Digitalization is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business.
7. Digitalization
Digitalization is the use of digital technologies to change a business model and
provide new revenue and value-producing opportunities; it is the process of
moving to a digital business.
8. Becoming a Digital Organization
There are three main phases to becoming a digital organization: digitization,
digital engagement, and digital transformation. This post offers a lay oriented
description and assessment of these phases. The objective is to help leaders
who are digital rookies develop a conceptual foundation for understanding
where their organizations have been, where they are, and – most importantly
– where they need to think about taking them.
9. Digitization
★ Implementing some kind of document management system, using either a
shared drive or a software system.
★ Putting policies and procedures, as well as benefit plan descriptions and other
employee-related material, on an intranet.
★ Converting employee newsletters from paper to email, and using the intranet
to deliver announcements and other news.
★ Digitizing forms, such as new hire paperwork, benefits enrollment, requests
for time off, purchase orders, and expense reimbursement. This can also
include the digitization of the related administrative processes (e.g.,
approvals).
10. Two things to keep in mind about digitization:
★ It continues to evolve and expand. Although organizations have been digitizing their
operations for decades, we’re still in the beginning stages of what technology can and
will do. New digitization applications include things like biometric devices (e.g.,
thumbprint and eye scanners) that can be used for things like security, timekeeping, and
other purposes. Digitization also increasingly involves the integration of other new
technologies like advancing robotics, drones, the internet of things, and 3D printing.
★ It requires a commitment to continuous improvement. Because new technologies get
introduced and older ones improve, it’s important for organizations to be vigilant and
constantly seek to optimize their digitization efforts. There are no “fix it and forget it”
solutions. That means that websites need to be continuously reviewed and upgraded,
browsers and operating systems will periodically have to be replaced, and internal
systems (both technical and human) will have to be modified to adapt to changing
technologies.
11. Digital Engagement
Digital engagement begin with an external focus, emphasizing marketing,
branding, sales, public relations and customer service.
Typically involves things like setting up some form of e-commerce, creating
and managing a blog, and establishing a presence on social media channels
like LinkedIn, Twitter, Facebook, YouTube, Pinterest, etc.
Provide more sophisticated tools that improve both the efficiency and
effectiveness of internal communication and collaboration.
12. Digital Transformation
➔Digital engagement activities are no longer siloed into specific functional
areas (e.g., marketing, customer service, communications); rather, they’re
deployed cross-functionally
➔Social and digital technologies are not “owned” by specific groups (e.g.,
marketing or IT); rather, they’re managed by integrated teams of
representative users
➔Strong governance systems are developed, implemented, and vigilantly
maintained; the purpose of the resulting standards and controls is not to
restrict or stifle behavior unnecessarily, but to liberate people to interact
with each other using social and digital technology more efficiently and
Contd.
13. Digital Transformation
➔Leadership is digitally literate, understanding technology trends and their
applications and implications at a level necessary to provide the
necessary strategic direction and allocate required resources adequately
➔The workforce has the knowledge, skills and abilities they need to
leverage new work tools appropriately, and digital competencies are
prioritized in the organization’s human capital management practices
➔The organizational culture (i.e., its values, beliefs, and norms) reflects a
strong appreciation for the strategic and tactical value of digital tools and
technologies to achieve its objectives