The business environments are typically known to be dynamic such that they are constantly evolving or witnessing a slump due. In such environments, if the business is not careful to external impediments, it can lose out or can be demolished by competitors. Digital transformation can happen if businesses are aware of the changes happening around them.
A SWOT or strengths, weaknesses, opportunities and threats analysis can help businesses to understand where they stand in terms of their limitations and opportunities. At a transactional level, process automation can be implemented which can be followed by a strategy design, planning and funding. Delegation may not help at this stage. Instead, businesses can use a dedicated or specialised team to oversee the strategy and can use agile methodologies to sustain.
The idea of digital transformation is to hold back on activities or processes that can be achieved through alternative means. This means that activities that are not central to the business can either be internally digitised or outsourced completely. Businesses should pay attention to the fact that when services are outsourced, instead of looking for companies with the cheapest interaction costs, it is advisable to look for companies with the business process that can help reduce the total cost of ownership. Reusing cost savings with a dedicated investment from the board of the business firm can help.
Though SWOT helps track the business’ gaps and opportunities, external competition is something that needs to be adequately tackled from time to time so as to remain in the business. This should keep happening simultaneously as and when the business is transforming its services and offering. For instance, the combined force of new IT solutions and actual IT assets such as big data or Internet of Things (IoT) can help in cloud services and legacy modernisation. The investment budget will witness a rise by the savings pulled together.
Friendly end-user experience and application of process automation have shown a lot of promise. Even before the demand arises, smart businesses should create the need for such services. After all, digital transformation is all about knowing the customer and the business well in keeping with the constantly evolving landscape.
#supplychain #procurement #SCMtrends #automation #businesstransformation #efficiency #bestpractice #digitization #outsourcing
Author – Aval Sethi, Founder