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Would you say that digital transformation begins with process transformation?
Accepted Answer Pending Moderation
IMO, digital transformation begins with employee engagement. The biggest challenge to digital transformation is not a technological one but rather a mental one. On average, Enterprise applications have only a 12% adoption rate with the workforce.

However, if you're able to have an engaged workforce change is much easier to implement and proliferate.
References
  1. https://connecteam.com/top-10-change-management-strategies/
Comment
Agree. the trick is to provide the users with technology (UI, background orchestration, background governance, etc.) that make it easier for these users to use the technology than to not use it.

My group has a nationwide initiative to get police investigators to use laptops/tablets/smartphomes where they have, in many cases, used paper notebooks for decades.
  1. Ian Gotts
  2. 1 year ago
  3. #4390
Digital Transformation starts with a vision of a new business model exploiting digital technology. I am sorry but replacing paper notebooks with laptops is is digitalization, NOT transformation
  1. John Morris
  2. 1 year ago
  3. #4391
+1 @Ian "digitalization is not transformation" . . .
Hmm.. I see the following dentition "Digitalization is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business." It doesn't fit to Ian's "replacing paper notebooks with laptops is is digitalization".
  1. more than a month ago
  2. BPM Discussions
  3. # 1
Accepted Answer Pending Moderation
Digital transformation begins with your target architecture which is the base to engage employees.

Thanks,
AS
Comment
  1. more than a month ago
  2. BPM Discussions
  3. # 2
Accepted Answer Pending Moderation
I don't think Digital Transformation begins with Process Transformation.
But.. If you're going to make all your Digital Dreams come True, you have to be able to implement them as business processes. You have to operationalize the digital experience. By coincidence, we're discussing this literally today and for the next two days at our annual conference on the topic (Driven 2017). Next year we'll open it up further, hoping to build on the great speaking line up we have this year.
References
  1. http://info.bp-3.com/driven2017
Comment
  1. more than a month ago
  2. BPM Discussions
  3. # 3
Accepted Answer Pending Moderation
Process Transformation is a business objective to change how the organisation works with objectives such as improving customer experiences, improving productivity, cutting management overheads, empowerment of people, speed up feedback for better decision making etc. Digital should be the enabler to address not just the "digital" UIs but the underlying end to end process in handling the back office orchestration of all data as required. So to the question I see the achievement of process transformation will be implemented by digital transformation.

The real issue is do the business leaders understand that this is not just about web forms ....? I find it concerning that there are so many blinkered views on digital that just focuses on information and UI forms available on the web....? Business (including government see link below...!) will rightly be very cautious even cynical about the perceived need to be another "IT project" so they need to be educated that the old risks of coding and inflexibility are now removed. Indeed this new investment will be fraction of cost of "Old" and will be future proof investment which will overtime see old legacy retired...that's a transformation strategy on its own.....but requires knowledge of how...not just more vendor BS.....
References
  1. http://blog.diverdiver.com/2017/08/gds-isnt-working-part-5-no-vision-no.html
Comment
  1. more than a month ago
  2. BPM Discussions
  3. # 4
Accepted Answer Pending Moderation
We can discuss for weeks about where should digital transformation start. People? Processes? IT department? Bottom-up? Top-down? ... I think there is not only one valid answer. But it has to start somewhere, and process transformation seems fine because:


  • Processes are everywhere in the company, so we can choose a good one, balancing relevance and complexity.
  • Processes are relevant in the digital transformation agenda, and once we have some transformed, we can move forward with the next
  • An incremental approach is valid in processes; we don't need to transform all at once.
  • Processes involve people, so when we transform processes, people naturally gets involved with the wider digital transformation.


In sum, I think there is no "ideal place" to start digital transformation. It will depend on each organization. But process transformation seems to be good place to start.
CEO at Flokzu Cloud BPM Suite
Comment
  1. more than a month ago
  2. BPM Discussions
  3. # 5
Accepted Answer Pending Moderation
I will increase the level of abstraction a bit on "digital" and "transformation", and base my thoughts on business improvements, an admittedly far less catchy term. In that sense, I also would look at the architecture first, as stated by Alexander. However, the points for orientation should always be the market, the customer. With that in mind, end-to-end business processes, or their underlying BPMS, are great candidates to start with, as part of said architecture. Also, looking at processes as usually being the front facing layer of tightly integrated technology stacks, they can serve as a flexible and adjustable buffer zone which allows businesses to adapt to briskly changing market needs, without having to overhaul all the technologies and rigid applications underneath.
NSI Soluciones - ABPMP PTY
Comment
  1. more than a month ago
  2. BPM Discussions
  3. # 6
Accepted Answer Pending Moderation
Where to start depends on corporate culture.

A corporation that has strong leadership uses RBV (Resource Based View), or equivalent, to build competitive advantage. This distills down to making good use of scarce resources and the only routes to funding are a) annual budgets b) "initiative" budgeting and c) ROIs.

The CEOs of these organizations presume in-place processes and run-time workflow/workload environments, plus ways and means of assessing progress toward meeting goals/objectives.

My take is IT (ie. the new IT, not digital plumbers) should take the lead in setting up all of the required infrastructure, so the launch point is an SROI (Socio-Economic Return on Investment), not processes. (i.e. first the problem, then the solution).

I can provide a long list of companies that have yet to bridge the gap between strategy and operations (both on the way down as well as on the way up).

Organizations that are unable to demonstrate synchronization between strategy -> operations -> strategy are basically trending their past into a future characterized by a much higher risk than necessary.

For me, everything starts with planning i.e. "Planning is the design of a desired future and of effective ways of bringing it about" (Russell Ackoff, 1970).

Lewis Carroll gave similar advice (1865)

Alice: Would you tell me, please, which way I ought to go from here?"
Cat: "That depends a good deal on where you want to get to"
Alice: "I don't much care where"
Cat: "Then it doesn't matter which way you go"
Comment
  1. more than a month ago
  2. BPM Discussions
  3. # 7
Accepted Answer Pending Moderation
Digital Transformation starts with a vision of a new business model exploiting digital technology.
Then you need to start designing the new operating business processes.
Next you build the technology to support the new business processes.
Then you implement the changes (or create a whole new organization).

None of this is straightforward which is why 84% of digital transformation initiatives FAIL according to Forbes https://www.forbes.com/sites/brucerogers/2016/01/07/why-84-of-companies-fail-at-digital-transformation/#5352509397bd

The winners think of digital transformation as revolution, not evolution. To boldly go.
Comment
Is “business model” an integral part of enterprise architecture?
Does “vision” describe an idealized solution?
If both answers are yes then “vision of a new business model” is the version 0 of your target architecture.
  1. more than a month ago
  2. BPM Discussions
  3. # 8
Accepted Answer Pending Moderation
Digital Transformation Journey begins with the "Wake-Up Call" for Business:

• The current system has too many challenges to deal with
• The Legacy systems are getting next to impossible from a maintenance front
• Tough to get the specific skillset of developers in the market - for age-old technologies
• Our revenues are getting Hit YoY - time to rejuvenate our platform
• Our peers and competitors are making us run after money - need to do a complete fish-bone analysis of the system
• Are our systems future-ready & well equipped to adopt the nextGen technologies?
•........and many more!!

Next, follows the :

Envisaging the Business Model & Target Architecture (vision) → Defining New Operating Model → Process Optimization or Re-engineering Techniques (Process Transformation) → Fitment Analysis (Wrap-&-Renew or Rip-&-Replace Model) → Digital Technology Relevance/Mapping (strategy, compliance & regulatory) → Implementation of the Changes → Realizing the Re-Incarnated System (claiming Digitally Enlightened or Digitally Transformed)

At each and every stage mentioned above the C-P-Q factor (Cost-Pace-Quality) is validated to take appropriate decisions.
Comment
Thank you. That's very insightful.
Agreed, the list is just a small fraction of the entire Transformation journey.
  1. more than a month ago
  2. BPM Discussions
  3. # 9
Accepted Answer Pending Moderation
Any transformation should start trying to understand present situation and the key drivers or needs for the change. Doing this the most important aspect is trying to grasp how does the transformation effect to the customer process, behavior and experience. This leads us to think about our business models, architectures, processes, products and eventually what needs to be done to change the processes, products and services....This might include such as education, IT-system changes, web-pages, facilities, organizational arrangements, work-systems, job designs etc.

One aspect of the transformation is that we do not really know does it work out or not. Every transformation is unique. The genuine transformation goes through a chaotic phase without any certainty of success.... any way most transformations fail.

br. Kai
Comment
RE "trying to understand present situation and the key drivers or needs for the change" - should it be a normal ongoing activity (remembering one of our previous discussions about customer feedback) which "generates" an event to start your digital transformation?
There are two kind of situation... 1) on going business intelligence activities as Alexander points out. This acts like a trigger "hey something is going on!", we might need to make some move. If the signal is important enough we may start to explore what does this mean for us. 2) We create a task force to study the situation and maybe decide based on this to start transformation.

There is also common mistake to name any change as a transformation... In most cases the change is just a reaction to the changing business environment trying to somehow to survive in fierce competition. This is what most leaders and people feel continuous pressure to change (business as usual). This has almost nothing to do with how I understand transformation. Those organizations who are game changers don't just react, they make others to react. Transformation is not a continuous act... it may need something like 3-5 years intensive change work to build new capabilities like "digitalization" what ever we might mean by that.
  1. John Morris
  2. 1 year ago
  3. #4412
@Kai -- good point about transformation not being a synonym for change. Geoffrey ("Mr. Chasm") Moore thinks you'll be lucky to have one successful significant game changer (i.e. disruptive change) in 10 years. That's for disruption and we can imagine more frequent non-disruptive changes too. What isn't transformative is the usual business adaptations for which operational management is paid to look after in the usual course of business. All this isn't just semantics -- if precious management bandwidth is spent chasing clouds of "fake change", a kind of "business virtue signalling" . . .you refer to "game changing" and that gets to the heart of it: transformation is when business model fundamentals evolve to something new.
  1. more than a month ago
  2. BPM Discussions
  3. # 10
Accepted Answer Pending Moderation
Digital Transformation is driven by the customer. Process transformation is just a new buzzword about internal cost reduction. The two are not related and target different things. It might be possible to connect them but in reality the problems wirh process management would destroy any customer focused digital strategy.
Comment
The vast majority of customers, who/which I know, expect a perfect delivery of agreed services (may be your customers don't). So far, one of the best ways to achieve this is to implemented such services as processes, i.e. explicit coordination of business activities (again, may be you know a better way).
Because digital transformation is about building the life cycle of products and services on the primacy of their digital "form" and those life cycles cover the both customer and provider, then digital transformation and process transformation are closely related.
I totally agree with Alexander processes are how business really works always has been and always will be. Digital is the presentation of data for "information" and for use as required to achieve desired outcomes or create new data to progress through business processes. It is a very simple concept and it concerns me that Max does not "get it" .....?
  1. John Morris
  2. 1 year ago
  3. #4399
I also agree with Alexander -- and note that digital automation artefacts are themselves "products" and that they have their own "lifecycle". Thus a process transformation leader is also a product manager and will concern him/herself with building a transformation artefact manufacturing capability. Very "meta" . . .
"Digital Transformation is driven by the customer."
That is absolutely NOT a rule. Most of my customers are self-driven in their pursuit of digitizing their business. Their customers could not care less how the services and products are being delivered, as long as it is as per the agreement (we're talking on-site maintenance services, manufactured goods, fresh food etc).
In the healthiest of cases, Digital Transformation is a quest for survival and competitiveness. This calls for internal innovation too, not just external.
+1 Bogdan . . . a second proof that "DT is not driven by the customer" is that many startups do not have readily identified customers.

I like "Digital Transformation is a quest for survival and competitiveness. This calls for internal innovation too, not just external."
  1. more than a month ago
  2. BPM Discussions
  3. # 11
Accepted Answer Pending Moderation
For any business leader driving business transformation, the above comments are worth absorbing.

Note though I've used the term "business transformation" rather than "digital transformation". It's fascinating to note how searches for the two phrases have tracked on Google Trends -- "digital" overtakes and then soars ahead of "business" starting only at the start of 2015.

Google Trends Showing "Business Transformation" Versus "Digital Transformation"

The two terms don't really mean the same thing. As multiple community members have pointed out (notably @Gotts and @Panda) the trigger for process transformation is business need (which in turn is triggered by customer need -- thank you Peter Drucker).

What's the difference between "digital", "business" and "process" then? Is there anything to be gained by such a distinction, beyond pedantry?

I suggest "yes", it's worth distinguishing between business, digital and process, because it's the distinction between "why", "how" and "what". Failure to distinguish especially between the "why" and the other two terms can lead to technology-driven programmes with a higher-rate of failure.

We accept business need as the "why" as the key to success for any business programme. So concerning now the "how", we can note that hiding behind both digital and business transformation is "the-work-of-business". Business is all about work of some kind. And regarding the work of business, -- now we can bring in BPM technology as "the technology of the work of business". And because BPM is technology, we can now add to our distinction the question of how BPM technology artefacts enable transformation.

Again, as pointed out in comments above, transformation starts with business need. Then primarily based on BPM process technology we manufacture the artefacts of new business process. For a diagram of this process, see the lifecycle in Challenges of Being a BPM Pioneer: Part 4 - Building Work: Deploying Process Automation Artefacts.

Where does this leave us? To really address any kind of transformation, the "how" or the "why" we want to look at the enabling technology for that transformation. And unless we want to engage in magical thinking, we will need to concern ourselves with acquiring the "what": manufactured process technology artefacts. Specifically for the work-of-business, the primary artefacts of the technology-of-business are BPM technology artefacts.

Business transformation winners will be those who have the best ideas for business transformation ( "why" ) -- and which are most adept at building a transformation technology artefact manufacturing capability ( "how" ). Stated more succinctly, business transformation winners will be very good at building great BPM technology-based business processes ( "what" )!
Comment

@John. "business need", "the work of business" works for me but when we get to "BPM technology as the technology of the work of business", I have a question.

Are you saying that BPM technology picks up BPM AND RALB (resource allocation, leveling and balancing across multiple Cases) AND FOMM (non-subjective assessment of progress at a Case toward Case goals/objectives)?

If not, my comment is that "BPM technology" only picks up 1/3 of "the technology of the work of business".

I have no problem with a wide interpretation of "BPM technology" as "the technology of the work of business" so long as people don't say they are "doing" or "enabling" BPM when they lack RALB / FOMM or equivalents.

I don\t see a lot of references in the literature to 3-tier scheduling, I don't see a lot of references in the literature to FOMM (Rand Corp), even they cannot find their original article, so given my position of strong belief that one cannot do Case Management without BPM, RALB, and FOMM. easy to understand why I am up nights wondering what is going on in BPM-Land.
@John.. I see less of "customer need" being the antecedent of "business need" - I doubt the customers of FitBit, other than athletes, had any notion that they would need "smart watches" prior to the design being finalized.

The notion that FitBit / Garmin would seriously impact the traditional watch industry probably did not exist during the product design stage.

Most of the stuff we invent in our business has no customer - we get an idea, find out who might want a product/service based on that idea, then in order to explain what we have identified as "benefits" of the product/service, we often have to build it otherwise next to impossible to give a "pitch"
  1. John Morris
  2. 1 year ago
  3. #4405
@Karl, you are asking a terrific question that gets to the heart of the value of BPM technology. What is included in BPM technology?
I proposed an answer to this question in the following article on BPM.com (part of the "BPM As Revolutionary Technology" series):
https://bpm.com/bpm-today/blogs/1165-minimum-viable-definition-of-bpm-technology-part-1-the-kitchen-sink
Two points:
1. DEFINITION OF BPM TECHNOLOGY -- The proposed BPM technology definition includes a "core" and "related" technologies. The overall motivation is to define the reality and importance of what BPM is. BPM technology is uniquely worthwhile -- but that uniqueness is all too often overlooked as BPM is mashed into comprehensive solutions and platforms. The core of BPM is really only concerned with orchestration of work. i.e. the manufacture of process artefacts helpful in automating repetitive work activities for better productivity. (The key technical concept here is that work, process and artefact manufacturing are first-class citizens of said technology.) Obviously (as per the diagram) there are lots of other things that we need and that business needs for complete automation technology solutions, including for example "rules technology" or "analytics technology" or "interface technology". I include "resource planning" (i.e. RALB more generally) as part of this superset.
2. CASE MANAGEMENT AND BPM TECHNOLOGY -- To your point about case management (i.e. beyond the RALB question), how does the concept of case automation technology relate to BPM? Is it a native part of core BPM technology? Or a separate complementary technology, comparable to business rules. This is a tough question. One could make an argument that the best BPM, complemented by e.g. rules and analytics etc., includes everything one needs to deliver case functionality -- a case is just another process instance in a rich BPM system supporting real-time dynamic process paths. On the other hand, if you can make the argument that a case is an ontologically distinct entity, then case technology would be complementary to core BPM technology.
Clearly business needs all the functionality that software creators can deliver. I say the technology that business needs starts with the technology of the automation of work, which is BPM technology. But certainly business needs everything else too. If we forget the former however, then we find ourselves in the world of BPM today where major vendors are de-emphasizing the whole idea of BPM. It's sort of like saying we should "de-emphasize electricity" because "we want toasters". Sure, solutions are what we want. But we sub-optimize by ignoring the fundamentals.
@John +1

Re " I say the technology that business needs starts with the technology of the automation of work, which is BPM technology. "

We have to get to where we are doing the right things, the right way, using the right resources.

Funding policy/procedure ensures that Case goals/objectives are in line with Corporate goals/objectives (otherwise don't allocate the funds).
  1. John Morris
  2. 1 year ago
  3. #4407
@Karl - From your contributions to BPM.com I know you are especially focused on case patterns. One can imagine that organizations mastering more complex work patterns (i.e. not just STP or "straight through processing") are at the same time likely adding more value, Thus case-oriented service providers, by offering more value (due to complexity), and combined with higher barriers to entry (also due to complexity), are likely to earn higher margins. So, getting case and BPM right together is both important -- and rewarding: +1 @Karl!!
"business, digital and process, because it's the distinction between "why", "how" and "what". " - very good!
For clarity I see BPM as the thinking to work out what needs to be created to deliver the complete end to end application. In business operations (and government) the reality is not much that is not a "case" HR, CRM Asset Management, SCM, ACM etc.? There should be no limitations on such thinking, no matter how complex, supported by the "Digital Business Platform" software. This includes those FLAs indeed there should be no need to think in "tiers" ...? As a Platform the following capabilities are addressed; Let's remember business is actually quite simple when broken down into step by step and the software needs to mirror this! Technology complexity lies in infrastructure, security and build of IoTs/gadgets which are used in any process?

• Process engine - to ensure all works to plan.
• Rules engine - reflecting real world of work and compliance.
• Calculation engine - automating system work.
• State engine - Real time feed back from any point.
• Workflow - everything connected in right order.
• Audit trail, events, escalations - = control with empowerment.
• Rapid prototyping - user involvement in build no need for a final spec
• Time recording - supports activity based costing.
• Real time reporting - becomes predictive.
• Build mash ups - one screen multiple data sources.
• Linked intelligent Ajax grids - enter data only once.
• Roles and performers - people and machines recognised.
• Management hierarchy - see who does what and when to reallocate work
• MDM Orchestrating legacy with business processes as required - recognition of valuable legacy data and functional systems
• Call Web Services - wrapped up in a process.
• User interface dynamically created linking people, roles, task type and data via forms for specific instances.- supports adaptive capability
• Content handler and in memory work capability - to ensure high performance.
• Pre-built templates for custom documents, letters, e-mails, messages etc dynamically populated with instance specific data and edit capability in browser - recognition of external communications documents etc
• Process and task versioning control – ensures minimal disruption, if any, to implementation of changes

  1. John Morris
  2. 1 year ago
  3. #4411
+1 @David for assembling all the functions that are truly needed to build software. Advocates of "citizen software development" should take note -- and maybe consider a little humility in the face of the richness and challenge of turning business ideas into technology artefacts!.
Regarding your suggestion for clarity, clarity concerning BPM has been the purpose of my article series on BPM.com.
Specifically I asked what is unique and important about BPM per se. In other words, what is it that is different from all the other important technologies that go into a full set of software application construction tools?
Any reader who hasn't had a chance yet will enjoy the following answer to that question:
a) Introduction -- Why BPM Automation Technology Is Unique And Important - One Technology Of Work
https://bpm.com/bpm-today/blogs/1144-why-bpm-is-unique-important-part-1
b) BPM Technology Compared To All Other Software Technologies (i.e. each item in the list above)
https://bpm.com/bpm-today/blogs/1165-minimum-viable-definition-of-bpm-technology-part-1-the-kitchen-sink
c) The Irreduceable Core of BPM Technology - The Minimum Viable Definition
https://bpm.com/bpm-today/blogs/1167-minimum-viable-definition-of-bpm-technology-part-2-the-bpm-core
To understand BPM technology is to grok the "minimum viable definition of BPM technology"; this is the key to BPM sales and BPM adoption.
  1. more than a month ago
  2. BPM Discussions
  3. # 12
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“Transformation” must not be underestimated requiring many aspects of change when applied to business. I Agree with Kai “most transformations fail”! Dr Edwards Deming summed it up “managing transformation means transforming management” See link below for more detail. As such it is clear that Transformation is a big challenge and understanding the implications is important in that business executives understand just how it is going to be tackled. Relating it to “digital” and “processes” this must include how “IT” both infrastructure and software will deliver. There would normally be a “big” reason to embark upon transformation.

Dr Deming helped Japan after WW11 just highlights the significance of a need but when vendors of technology or services use the term “Transformation” in their marketing it devalues its importance and hence maybe why such a high failure rate? The organisation (or country) top to bottom needs to recognise the problems be prepared for difficult decisions not least of which is that “management” change. It is interesting to see UK Government now recognising a big issue in its failure to see new global $1bn business emerge from its intuitive innovative culture see link below. The fast-emerging changes on the Global stage (gratefully without WW111) is going to make this even more important and the solution needs to be “Transformational”. It is not just in “IT” such transformation is needed it will be in new technologies addressing Water, Pollution Control, Power Generation, Pharmaceuticals and many new and quite disruptive ideas for the betterment of humanity…supported financially by those “Global changes” in which I am involved in a relatively minor way!

At the operational level in organisations over past 40 years business and governments have been the unaware victims of the evolution of enterprise software resulting in huge cost with significant legacy issues with many disparate and silo driven systems. Vendors and their ecosystems of supply chains have built big businesses and the incentive to re-think to bring to a commoditise level is not only not there it will be resisted. However today with the power of the next generation (disruptive) software supporting the BPM discipline there is potential to support real “Transformation” within organisations BUT needs that Knowledge on “how”. Whether tagged Digital or Process is academic; it is just a question of time.
References
  1. http://www.transformationforum.org/PDFs/managing_transformation_means_transforming_management_sopk2.pdf
  2. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/634338/financing_growth_in_innovative_firms_consultation_web.pdf
Comment
  1. more than a month ago
  2. BPM Discussions
  3. # 13
Accepted Answer Pending Moderation
If we think of digital transformation as overlaying of digital technologies, then process tranformation may not be important. However, many of the systems and processees in most organizations have their roots in industrial age.Digital transformation is about reinventing the business models and making organizational changes to the root. Process tranformation is the key in that journey.
Comment
True that "many systems and processes in most organizations have their roots in industrial age" - unfortunately, approaches to strategy evolution are also antiquated.

I agree that Digital transformation should be about "reinventing the business models" but I cannot agree that "process transformation" is key. IMO we should be saying "necessary, but not sufficient".

Corporations still today have highly disorganized approaches to evolving strategy. Curiously, methods for an organized approach have been around since the 1960's.

My take is corporations have lacked the ability to see the "big picture".

We still see folks coming into strategy meetings with carts of spreadsheets./ study reports, bar charts, histograms, trend charts.

None of these are 'bad', but you cannot see the big picture.

We have the same issue in the area of operations -> strategy consolidations i.e. KPIs / "balanced" scorecards, where execs can spend years staring at KPIs that are not representative of the direction the firm thinks it is headed or would like to be headed.

"Just one look is all it takes" to get the big picture re business strategy and business operations

One year ago

See . . .

"Theories of the Firm – Expanding RBV using 3D free-form search Kbases"
http://wp.me/pzzpB-Ms

Who would have thought that RBV would become the cornerstone of Major Crimes Case Management?
  1. more than a month ago
  2. BPM Discussions
  3. # 14
Accepted Answer Pending Moderation
Digital Transformation is about the overlapping among the different industries. Digital transformation enables is about new business models that were not even possible to implement before. We are also seeing major shifts in terms industry verticals. We see Amazon going to brick and mortar grocery stores; we see Oil & Gas industries enter into renewables, we see Utilities companies entering in mobility business, we see Energy and Construction also entering in renewables. Hence, there is going to be fierce competition among the mature industries, between incumbents and new entrants and disruptors.

Digital transformation fades the value chain separation and starts an intersection, meaning that if Engineering and construction companies enters into the mobility business by providing services related with electric car charging stations, soon will be working together in partnerships will gas station retailers, convenience stores retailers, banks, telecoms, mobile money providers and together, the ecosystem of companies working in the same space interacting with the consumer as one.

Banks for example are expanding value chain and services: connect the customers with other service providers – e.g. wellness providers, retail companies – becoming part of customers’ needs and lifestyles. The more the customer interacts with the customer ecosystem, the more the ecosystem benefits in terms of shared customer profile data and business transactions.

Digital Transformation is about the blend, the fusion, intersection and competition / cooperation with other industry players.
Comment
or, more generically, DT is about the blend, fusion and intersection of different business model patterns.
  1. more than a month ago
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  3. # 15
Accepted Answer Pending Moderation
Here is an excerpt from my recent eBook Getting Started with Digital Process Automation on the same topic.

There are three main aspects of digital transformation:

  • Customer Experience
  • Operational Process
  • Business Model


https://adeeljaved.com/wp-content/uploads/2017/05/Adeel-Javed-Digital-Business-Platform-02-1024x473.png

Organizations going through their digital transformation journey are focusing more on improving customer experience and creating new digital business models. Both of these areas are visible to the customer and seemingly related to revenue growth, hence getting more focus as compared to the digitization of operational processes.

A great looking website, a mobile app, a state of the art customer support center or a new digital product are required, these will (likely) result in great customer conversion rates, but in all cases, they will trigger or interact with some internal operational process. An organization may be able to acquire new customers, but customer retention will heavily depend on how good or bad its internal processes are.

So yes, organizations must focus on improving customer experience and creating new digital business models, but digitization of operational processes that back them must also be made a priority.
References
  1. https://adeeljaved.com/2016/01/01/digital-transformation/
  2. https://adeeljaved.com/2017/08/18/begin-digital-process-automation-journey/
  3. https://adeeljaved.com/2016/09/29/why-digital-transformation-cant-proceed-without-process-digitization/
  4. https://adeeljaved.com/digital-process-automation/
--
Adeel Javed
Intelligent Automation Specialist (BPM, RPA, Rules & Integrations).
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  1. more than a month ago
  2. BPM Discussions
  3. # 16
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