Digital Transformation Part 1
Digital Transformation (DT) is the integration of digital technology into all areas of an organization, fundamentally changing the way it operates and competes. It is not just about buying new technology or moving to the cloud. It is about reimagining business processes, improving efficiency, and creating new forms of cost-effective revenue-enhancing agility.
Competing in today’s fast-paced markets means embracing DT. Companies that do not adapt risk falling behind their competitors. The transformation in Digital Transformation is about tapping into a significant new source of competitive advantage. DT helps level the playing field between large and small market participants by giving smaller businesses the ability to disrupt markets dominated by large well-funded less agile multi-national. By embracing DT, businesses can use their capital for more innovative and strategic initiatives, rather than buying hardware and software that is expensive to scale and obsolete almost immediately after acquisition.
DT involves more than just the adoption of new and modern technology. It is about utilizing technology and people in a way that delivers operational and market intelligence to the organization from the most senior leadership on down. “The most successful companies establish cross-functional teams for their digital business transformation initiatives” -Gartner (from The IT Roadmap for Digital Business Transformation – 2021). Companies that do not invest in digital transformation will find themselves at a disadvantage to their competitors for an extended period. Amazon built AWS as an internal digital transformation of their eCommerce business. In doing so they created the first public cloud a full 10 years before their current competitors. MS Azure and Google Cloud still have only a fraction of the size and functionality after 7 years of head-to-head competition.
Digital transformation is not about buying technology services and products. It is about changing the way a business operates. DT focuses on the strategy of how to use digital technology to make money and advance strategic goals rather than refreshing, updating, and adding technology. Large IT capital expenditures come with large scale risk of trying to align changing technologies with changing business priorities. DT is about shifting IT spend from point-in-time decisions (Capex) about future needs toward ongoing agile choices [that contribute to innovative business advancement].
The Managed Service Provider (MSP) markets products and services. Digital Transformation experts provide solutions that align with business strategy. Embracing DT is about changing the way a business operates and using technology to enhance value.
CloudSpace is a digital transformation expert. CloudSpace focuses on building solutions that align with the goals of our clients to help build more powerful and competitive business engines. We are cloud and solution architects with a deep understanding of business processes. Instead of the MSP services model, CloudSpace provide managed solutions that improve efficiency, security, function, and form.
