Digital Transformation by Cisco

What Is Digital Transformation?

Talk to analysts, IT, or business leaders these days, and you’ll find a hundred ways to define digital transformation. But the real question is what it means in today’s context. At its core, digital transformation is the application of technology to build new business models, processes, software, and systems that results in more profitable revenue, greater competitive advantage, and higher efficiency. Businesses achieve this by transforming business models, creating new customer experiences, and securing everything.

 

So how does it start? It begins with convergence of people, business, and things.

Share

When people and business connect, it results in better customer experience and increased productivity.

 

When people and things connect, it results in actionable insights and sustained value chains.

 

 

When business and things connect, organizations uncover new opportunities to transform processes and gain visibility into business outcomes.

Organizations need three critical capabilities to embrace digital business transformation. They are:

Organizations need three critical capabilities to embrace digital transformation.

Select a capability to look at in detail.

Organizations need three critical capabilities to embrace digital transformation.




Select a capability to look at in detail.

Organizations need three critical capabilities to embrace digital transformation.

Select a capability to look at in detail.

Organizations need three critical capabilities to embrace digital transformation.




Select a capability to look at in detail.

Transform Processes and Business Models

Return

As more and more devices get connected, companies have the potential to connect to and collect data from every extremity of their value chains. This creates the potential for new ways of doing business and the ability to disruptively transform existing business models, which leads to faster time-to-market, leaner operations, and greater agility to respond to market changes. 

For example, when businesses move to an automated digital supply chain, they can improve productivity, efficiency, and visibility with accurate demand planning, real-time inventory management, and reliable fulfillment. Similar business process improvements exist in all major business areas–marketing, finance, HR, product development, manufacturing, legal, sales, and customer engagement.

Return
Share

Empower Workforce Innovation

Return

Today’s workforce is multigenerational, with each group having unique motivations, values, and work styles. Workers want to be more engaged, empowered, and inspired at work. They tend to be more emotionally invested and focused on creating value every day. And they’re looking for companies that provide the tools and culture to allow them to be more productive and responsive. Digital technologies can play a central role in engaging a multigenerational workforce and meeting the unique requirements and motivations of each generation.  

Digital businesses are giving employees the tools to be more connected, engaged, and mobile. The blueprint for the digital workforce requires an always-connected workforce, deeper engagements through richer collaboration, and security everywhere. With these capabilities in place, organizations can increase productivity and improve their ability to attract and retain the best people.

 

Gallup Global Survey of
Employees in 142 Countries

Return

“On average, nearly 80% of respondents say they want to work for a digitally enabled company or digital leader.” 


— MIT Sloan Management Review and Deloitte University Press,
Findings from 2015 Digital Business Global Executive Study

Share

Create New Customer Experience  

Return

In a world of always-on digital services at your fingertips, customers have much higher expectations of the organizations with which they do business. Although product and cost leadership strategies have been used to great effect in the past to outsmart competition, the quicker pace of innovation and outsourcing has made them easy to duplicate. Winning the customer’s unwavering loyalty by delivering delightful customer experiences has become the primary factor in winning and retaining business and maintaining credible sustained differentiation.

By providing a seamless omnichannel experience to each customer—across every channel of interaction—digital businesses are winning increased customer loyalty. At the same time, they’re gaining deep insight to improve products and services and predict future purchases. As a result, customers have access to consistent information and receive delightful experiences along each step of the customer lifecycle.

Customer Experience’s Impact on Stock

Return

“We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.” 

— Jeff Bezos, CEO, Amazon7

Why Is Digital Transformation Important?
NEXT