Digital Transformation Changes the Way We Think

After my daily workout at the gym, my friend and I discussed how fitness centres operate their business model. The gym uses a subscription-based business model to get continuity and recurring revenue from its regular customers. I took the opportunity to explain and advise her to explore the digital subscription payment mode for her business. She has a stable and flourishing business; however, they were having challenges as some customers failed to make payments and needed to follow up constantly.

Yet she was still concerned as procuring a newer system to manage the subscription will increase resources for her business. I quickly helped her understand better that a subscription-based business model would help her business retain customers and predict and project her finances and revenue. Most importantly, it will ease her in their administration of follow-up payments.

The subscription-based business model is nothing new, and many solutions and application providers in the marketplace are using this model today. It is like practising lean management, where organisations should look into eliminating wastages, focus on strategic tasks, and cultivate efficiencies.

Many businesses are aware of the newer technologies and automation that will help them scale their business, but how many look into the entire business and ecosystem before considering digitalising?

Are you Digitalise?

I have always been writing and encouraging businesses and organisations to cultivate "Being Digital" in their digital transformation journey. I have even referenced "being digital" as it is about speed and agility, as described by John Rossman, the author of "think like Amazon." However, many cannot comprehend where they are in their journey to "Being Digital".

Coincidentally, I came across a joint report from Deloitte, ESI Thoughtlab and a coalition of business, government and academic leaders. It is titled "from digital to being digital: transforming service delivery and operations in cities post the pandemic." It's an interesting report as it clearly defines how they view "being digital."

First and foremost, let me set the fundamentals correctly. Some often assume that Digital transformation is a short-term project that can immediately transform into "being digital." On the contrary, Digital Transformation is a long journey. The report elaborates on it in a better light. The digital transformation journey starts with "Beginning Digital," "Doing Digital," "Becoming Digital," and "Being Digital." But what exactly do all these terminologies mean?

This report is specifically related to the U.S. Government. Therefore, I am using these terminologies and adapting them to laymen's perspectives and contexts on how this can be relevant to many local organisations today. 

• Beginning Digital is the inception of the internet, where businesses use websites or an eCommerce platform to provide marketing, sales, and basic services to consumers. The technology then enhances it so that all smart devices, smartphones, and computers can perform transactions online. Investopedia describes it as a disruptive technology then.   

• Doing Digital is merely deploying digital technologies to improve customer service. It's like reshaping the older service offerings with newer technologies. For instance, in the above scenario, businesses use the subscription-based model to charge their customers regularly for the services or purchases of a product with them.    

This will ease business transactions and the convenience of payment. Businesses can define the tenure of the subscription to their consumers. Consumers are also allowed to cancel or renew their subscriptions at any time. A service contract has to exist for both parties to understand their obligations along with the terms and conditions.

As such, by "doing digital", businesses can ease their processes by adopting technologies to improve services to their customers. Deloitte terms it as leveraging digital technologies to extend business capabilities. It's still the same business model, operation and customer models. 

• Becoming Digital is more toward advanced digital strategies as businesses strategically reposition and shift towards the digital economy. Slightly different from doing digital. This involved changing the way businesses operate by leveraging emerging technologies. 

For instance, many businesses focus on improving their processes to gain customer satisfaction. However, this is different. First, it's about transforming the business model; it involves the entire business ecosystem and a total mindset shift from the existing business. It's a total shift that changes how the business operates to provide more value to customers. It is about customer experiences.

An online digital platform provides consumers with an end-to-end online shopping experience. These online digital platform solution providers will give seamless engagement with customers. They will not focus on only taking orders; they become the one-stop solution. It works by hosting many retailers and collaboratively working with partners to provide a payment gateway, manage orders, and the logistics process from storage to order fulfilment and delivery, including customer service and other modes of interaction.

It's a one-stop, end-to-end solution that provides one-touch point engagement with customers to enjoy their shopping seamlessly. As a result, it will increase the importance of end-to-end customer experiences. Deloitte terms it as having the business advance its services by leveraging digital technologies. This model will change the current business operation and customer models.

• Being Digital, based on Deloitte's report, is described as human experiences being elevated by incorporating human-centred design and advanced technologies to transform operating models, thus improving service delivery. The advanced technologies can be Artificial intelligence (AI), Robotic Process Automation (RPA), and other smart technologies. It's about more than just advancing customers' or consumers' digital touchpoints. It's about reimaging the entire business model to engage with the customers. This will impact the organisation and the business mindset, including the corporate outlook and behaviour. It's a new way of engaging with customers. 

I came across one documentary about how China digitally transformed into a Digital and Medical Healthcare in Zhejiang, published by New China TV. They have a 5G functional ambulance equipped with an ECG monitor, ultrasounds equipment, AR glasses, and headphone to free the ambulance paramedic's hand to save lives and transmit information between the ambulance and the hospital. The AR glasses worn by the paramedic come with monitoring capabilities so that the hospital's doctors can see real-live happenings via the AR glasses transmitted through real-time 5G technologies. This eventually helps the doctors to guide the paramedic to the next cause of action and work collaboratively to save lives simultaneously. The hospital will also have real-time information before the patient arrives.

As we view technology as a way to simplify our daily lives, people have been demanding valuable and fast solutions to every problem arising. 

Therefore, "being digital" is like how John Rossman elaborates it. It is about wrapping speed, agility thinking, and a new business model approach.

Digital transformation can be daunting because all processes and strategies must be addressed down to the core structure and company culture.

Digital transformation necessarily involves the development of new skill sets among employees at all levels and across all departments.

I-scoop explained it as a cultural, organisational, and operational change. Digital transformation is about the integration of processes and organisation competencies across all levels of functions and digital technologies. Many people advocate that Digital Transformation is about PEOPLE, not technology. It starts with people's mindset, behaviour, cultural change, and not forgetting to Think Digital.

Where are you today?

Have you started your Digital Transformation journey? Are you still in the stage on still beginning digital and still working in the legacy way of adopting the eCommerce platform, or have you gone beyond that stage of Doing Digital that only thinks of improving internal processes?

Perhaps, you may have gone beyond doing digital and have started becoming or being digital.

Regardless of your stage, one must comprehend that digital transformation is not about technology or project. It's about people's mindsets, which require one to think beyond the current way of doing business.

Digital Transformation is about the organisation and yourself, creating more value for your business, customers, and employees. Digital Transformation will not only change the Business or Organisation alone, but it will also change everyone personally.  

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About the Author

Elsie is an IT Services Business Process-oriented hands-on practitioner and an advocator of Digital Transformation and Gig Economy (DXGIG). She believes that the future is no longer about legacy business; it’s about technological, mindset and cultural change. Hence, organisations should set the right pace with the right fundamentals when starting their Digital Transformation and Gig Economy journey.