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Digital reinvention

29 April 2019

Is it still valid, two decades after its initial implementation, to continue talking about Digital Transformation in companies?

It is obvious that with Digital Transformation we do not understand the simple digitization of the company today. To the present, whatever the sector in which it is inserted, it can not ignore if it wants to survive, a permanent digital reinvention. In our country, multi-channel (corporate email, telephone service, web page and social networks) has been implemented for a long time for all companies. But the concept of Digital Transformation goes beyond a simple Customer Relationship Management (CRM) model and assumes the adoption of a business culture, a change in the whole organization, in people and groups, employees, managers of areas or departments, in executives and senior management in their leadership role, all within a collaborative environment.

"The digital transformation has different meanings, depending on how the companies or managers responsible for implementing it are. For some it is about technology. For other about marketing and channels: attract customers and deliver value: For others it would be new business models and exploitation of new opportunities "(Lorenzo Ochoa, 2016).

This author insists on the narrow alienation that must exist between the strategy of the company and the development of digital capabilities.

Oswaldo Lorenzo reviews what he calls different models of maturity, procedures to measure / evaluate and define "a travel route through which companies must move to progress towards greater digital maturity."

1. CMMI: Capability Maturity Model Integrated (2001).
2. The McKinsey Digital Quotient (2015).
3. Sector Model for Telecommunications.
4. Multidimensional Model of Digital Culture

5. MIT Maturity Map
6. Degree of Preparation Industry 4.0

The web that we quote at the end allows each of the models to be read in detail. We have graphed one of them, the one that the author highlights in another of the articles, from which we extract the next table with the main items that concern the leaders or executives of the company regarding this function.

In this same order of issues that we have been examining, BBVA Research has recently developed a multidimensional digitization index (DiGiX 2018) that allows comparing the different countries -its strengths and weaknesses- regarding DIGITALIZATION MATURITY. "The analysis includes the economies of 99 countries. At the top of the ranking are Luxembourg, the United States, the Netherlands, Singapore and Hong Kong, while the leaders within their respective regions are Malaysia, South Africa, Chile and Costa Rica. "

This device "uses three main pillars: offer conditions (infrastructure and costs), conditions of demand (user, government and adoption of companies) and institutional environment (regulation). Each of these three areas is also made up of six key dimensions: infrastructure, affordability, user adoption, business adoption, regulation and government adoption.” (April 10, 2019)

The complexity of the issue we are dealing with could be measured by the innumerable and varied catalogs, depending on the company, organization or author involved.

According to Accenture Strategy in its 2016 Digital Disruption report, the digital economy represented 22.5% of the world economy. In the case of Spain, estimates that 19.4% of the Spanish Gross Domestic Product (GDP) was linked to digital environments.

The report 'Digital Economy. An opportunity for Spain '(also prepared by Accenture) emphasizes that reaching the goal - digital acceleration would boost 3.6% of GDP in 2021 - involves generating talent, increasing investments, adapting regulation to new technologies and enhancing the digital platforms.

Poyatos Díaz, JM (February 2018) publishes in the magazine Harvard Deusto, the article 'Digitization and growth. The challenge of the digital transformation of companies', where it raises eight vectors to consider regarding this digital transformation:

In relation to the role that top executives should play in the implementation of digital reinvention, we note two variants that we detect in olosyra:

How to promote digital transformation through leadership, is the title of a recent article (19/03/2019) from which we extracted some paragraphs:

“According to a recent study carried out by PwC, 19% of the 2,500 largest listed companies in the world already have a Digital Manager, CDO (“ Chief Digital Officer “) or Director of Digital Transformation. It is also a percentage that grows year after year given that, according to this same study, two years ago, this proportion was 6%. (…) In fact, only in Spain, 33% of companies already have this type of role within their organizations. “

Functions of this CDO would be: “adapt the strategy and operations of the olosy to the new needs of the client and the environment to generate more business, with special focus on the creation of value leveraged in the use of new olos, channels or platforms and the Big Data, data analytics and artificial intelligence “. And it must “focus on five key aspects”:

CDO: The leadership

“According to a study by Deloitte on outsourcing in Spain, 86% of companies use outsourcing as a tool to face the main challenges of their organization, being the main challenge, with 73%, the need to quickly adapt to new technologies "Lavanguardia.com (15/10/2018).

Although it does not concern business activity, the implementation aspect of digital transformation in the public sphere, in others words in the administration, also deserves some news headlines in the media. Expansión.com (16/04/2019) and Marta Juste handles the Innovation and proposals of politicians: From the 'blockchain' to the 'big data': Digitization as an electoral weapon. And as a subtitle: The digital transformation becomes an important part in the political programs of the main formations ahead of the elections on April 28.

The validity of the Digital Transformation is corroborated by the celebration of the Digital Business World Congress 2019 that will take place from May 21 to 23 in Madrid, an event that brings together the main international technology companies that drive the digitalization of business in the world.

This year, 450 international speakers will be presented (...) divided into four thematic blocks: success stories, new business models, leadership and influence on the implementation towards digital strategies. In 2018 it gathered almost 21,000 visitors, 300 exhibitors and 450 world experts.

Other texts consulted:

Lorenzo Ochoa, Oswaldo (December 2016): MODELS OF DIGITAL MATURITY: WHAT DO THEY CONSIST OF AND WHAT CAN WE LEARN FROM THEM? ECONOMIC STUDIES BULLETIN Vol. LXXI - N.º 219 - (Pages 573-590)

Lorenzo Ochoa, Oswaldo (April 2016): DIGITAL CULTURE: BUILDING NEW BEHAVIORS AND HABITS IN THE ORGANIZATION TO MAXIMIZE THE POTENTIAL OF TECHNOLOGY. ECONOMIC STUDIES BULLETIN Vol. LXXI - N.º 217 - (Páginas 71-83)

Poyatos Díaz, Juan Miguel. (February 2018). Digitization and growth. The challenge of the digital transformation of companies. Harvard Deusto Magazine.

 

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