Digital transformation 2.0 is all about adapting to the 'new normal in a more practical, realistic, and impact-focused fashion. This means industries are now focused on innovative and executable opportunities.
Unlike the buzzword that it used to be, Digital Transformation now is a necessity that moves beyond just digital disruption.
Digital Transformation 2.0 - An approach to analyze new technologies, improve digital footprints, and adopt new business models at a rapid rate.
The 3 main phases that an organization goes through while implementing Digital Transformation are -
Digitization is described as the encoding of analog information into a digital format. This is a change of analog tasks to digital tasks or integration of IT with all the existing tasks in the organization which can also be enabling cost-effective resource configurations with IT at the core.
Digitalization on the other hand is the way IT or digital technologies can be used to alter existing business processes. In this phase, IT plays the key enabler that helps in seizing new business possibilities by changing the existing business processes. This creates efficient coordination between processes, by adding value to the customers by providing an enriching customer experience.
Digital Transformation, on the other hand, is linked to the strategic changes in business models, as a result of the implementation of digital technologies. This phase has large company-wide implications.
The 4 Key Areas that Digital Transformation 2.0 focuses on are (according to Microsoft) -
Service and Products
In order to adopt new technologies like automation, big data, blockchain, and no code, employees of the organization need to be empowered. As digital transformation 2.0 focuses on customer demand, support will be a major factor. With skilled resources, being the need of the hour, organizations need to focus on upskilling employees and training them on new technologies.
Customer Engagement Management (CXM) is the next level of customer engagement that CEOs need to focus on. According to Rick Parrish, principal analyst at Forrester, there are six "competencies" to the right CXM framework. They are customer research, prioritization, design, enablement, measurement, and culture. Each part of the framework comes into play for each competency.
A streamlined business process helps in reducing friction amongst the teams in an organization, resulting in productivity improvement and reducing risks. With AI being at the core of things, teams can efficiently predict outcomes of their process, investments as well as resource allocation, thus improving the overall operations function. Also, with modern reporting structures, predictive analytics, and demand forecasting, operations can be completely transformed.
With Digital Transformation 2.0, organizations can sense and seize market opportunities and achieve digital agility by a combination of new products, services, and business models. With the growth of new business models like products-as-a-service, and digital platforms, traditional organizations can reach a wider audience base.