November 24, 2017, 1:36 pm
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DELL EMC ON DX: Companies crave for a successful digital shift

FORTY percent of today’s Fortune 500 companies will cease to exist in about 10 years if they fail to digitalize fast enough. This according to a study conducted by the John M. Olin School of Business at Washington University which found out how many top companies have yet to fully transform digitally. The impact of the digital transformation (DX), and the ability of businesses to adapt to it determines survival.

Acquiring the necessary knowledge to survive in the digital age, with its new wave of disruptive technologies is no small task. Augmented reality, artificial intelligence and robotics make the learning curve steeper and catching up more difficult as the technologies progress faster than the rate of take up.

Business leader’s awareness of the need to make and manage the digital shift requires a wholesale shift in business focus taking stock of overall strategy, focus, budget alignment, operations and approach. In the October 2016 study called “Digital Transformation Index” initiated by Vanson Bourne and Dell Technologies many findings point to how businesses in the Asia Pacific and Japan (APJ) region are furiously trying to catch up to DX.

Interestingly, it does not need a lot of technology to move into DX compliance.

Common business sense, heightened by an understanding of digitalization is they passcode to the transformation. Dell EMC encourages companies to review the following aspects in their DX journey; customer experience, resilience and agility, vision and ecosystem or CRAVE. Formed by observed best practices and strategies Dell recommends CRAVE as a guide for organizations to be able to navigate the journey towards digital transformation.

CUSTOMER EXPERIENCE. Customer experience is important for traditional businesses but because of connectivity and social media, the effect is heightened is digital transformation. Enhancing the customer experience is a driver for many DX initiatives. For example, digital-first businesses, those that started as digitally-driven organizations from the outset, are already getting this right and are gaining competitive advantage as a result.

Customer shifts are fast in the digitally transformed marketplace. For businesses to succeed in delivering effective customer experience today means being acutely aware of the customer’s ability to switch away with a click of a button, and to have an in-depth understanding of why they might do so.

Around 89 percent of consumers admit that they began doing business with a competitor following a poor customer experience. In the APJ only 24 percent are able to deliver a unique personalized experience to their customers according to the 2016 Dell study.

RESILIENCE. Learning the lessons of its failures and successes with minimal resources, minimal loss but maximum gain. Implementing a ‘lean startup methodology’ means organizations can flex to meet new customer demands or adapt their business model relatively quickly, capitalizing on opportunities that would otherwise present uncertainty. The organization as a whole has to be resilient enough to catch up and update itself or correct mistakes and move forward and agile enough to deliver on what the customer truly wants.

This resilience and agility means keeping pace with the speed at which market disruption can take place. These disruptions create an uncertain future for businesses and making resilience and agility an even higher priority.

AGILITY. From a foundation of agility, organizations are able to experiment at a faster pace, keeping up with and even get ahead of disruptive external factors. Innovators focus on products that provide maximum learning opportunities.

The customer experience isn’t only defined by instances of interactions between brand and consumer either: it requires an ability for the business to deliver innovative business models too, and to rethink the way its products and services are delivered, to more broadly meet on customer demands.

In APJ, only 26 percent of companies say they are able to innovate in an agile way organizationwide, and many Chief Information Officers (CIO) are still held back by a culture-driven fear of failure. Real digital agility means going beyond the speed at which new products or services are introduced to clients and must include a transformation of approach to talent, culture and business processes, with resilience in each, despite any fear of the unknown.

VISION. Knowing what the industry will be in the future does not need a crystal ball.

Studying trends and paying attention to developments in technology and processes will give a pretty good picture of what’s next. Yet half of companies in the APJ region admit they don’t know what their industry will look like in three years, according to the Dell study.
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