In lack of a digital strategy, companies tend to equate digitalization with IT integration, which implies confusion between the digitalization process and the IT integration process. The article’s aim is to support the formation of company’s digitalization vision from technology to strategy.
Among the different definitions of digitization, the one converging the most as a new development model, stipulates that ; it is the redefinition of the product offer and service, through a structural transformation of the company, impacting all its dimensions, from the organizational to the cultural, through the IT integration, value chain and other components.
Digitalization of the business and the society is a worldwide trend. As witnessed, the explosive level of the industrial enterprise digitalization, which from 33% in 2016, to reach 72% by 2020 as confirmed by a PWC report.
Through a literature review in 2019, my team and I found that the majority of research articles dealing with digitalization processes focus mostly on IT integration, or the digitalization of information, often framed by a sectorial vision. The transformational aspect of digitalization, as a full-fledged economic model, is often absent. In our study that we conducted on the dimensions of digital transformation we set up a knowledge model gathering all the dimensions that should imperatively be considered within a digital transformation framework, to succeed the digital transition while capturing all the opportunities it allows.
Already in 2003, a paper titled IT does not matter supported the idea that, unless technology is exclusive to a company, it does not provide a competitive advantage. To focus the digital question on technology as a purpose or an end in itself, and not as an essential (and not sufficient) mean for the realization of a digital strategy is a trap, in which the majority of companies unfortunately fall.
Fig 1. The relationship between all dimensions
In this sense, the MIT / DELOITTE report proposes a survey of 4300 companies of different nationalities, represented by their employees, holding various positions and responsibilities. The companies targeted are classified into 3 levels of digital maturity, early, developing and maturing, according to the score given by the employees to their company, in response to the question: Rate the company against an ideal organization, transformed by digital technologies and capabilities on a scale of 1 to 10.
Two main findings were identified from this study, namely:
Digital strategy drives digital maturity.
Only 15% of respondents from early digital maturity stage companies say that, their companies are adopting a coherent digital strategy. Against 81% from digitally mature companies. The communication on the digital strategy within the company is also fundamental; they are 90% to affirm to be correctly informed on the digital strategy of their digitally mature companies, against 63% of the companies at the early stage.
The power of a digital transformation strategy lies in its scope and objective.
The digital orientation of companies differs according to their digital maturity. Less digitally mature organizations focus mainly on operational changes, fully concentrated on digital technologies, against digitally mature companies aiming to the business model transformation.
These findings are confirmed by the 80% of the answers from companies at early digital maturity stage, affirming that, through digitalization, they target, improving efficiency and customer experience. Only 52% of the answers speak of business model transformation as an objective of digitalization.
As for maturing companies, digitalization is a support for strategic purposes. 90% say that one of the key directives of their digital strategies is to transform the business activity. These companies place their attention on the innovation that can develop the digital technologies and not on the technologies themselves. They are 90% questioned to confirm it; against 60% of low digital maturity companies.
Overall, the digital transformation must cover the business model, the operational processes and the customer relationship.
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