Unlocking The Full Potential of Enterprise Data
1.1 DIGITAL TRANSFORMATION IS A JOURNEY
Before embarking on the DX journey � , organizations often face numerous disjointed processes and data silos , many of which still rely on analog data . Such organizations are typically slow to react to challenges , lack agility , and are vulnerable to market changes and threats from innovative digital-native competitors .
Digitization � : This stage focuses on converting analog data of core processes into digital form and integrating them into processes . Eliminating reliance on analog data addresses a major source of inefficiencies in white-collar and blue-collar work environments .
Digitalization � : In this stage , the focus shifts to incorporating digital data into core processes , optimizing these processes , and on harmonizing and integrating them . This applies to both internal and cross-ecosystem processes . The main benefits here include streamlined operations , data-driven decision making , and cost reduction .
Note : With digitization and digitalization , the organization continues to produce the same value for its market constituents but does so more efficiently and more cost-effectively . Some of these benefits can be passed on to customers through lower prices and more reliable product availability .
Digital Transformation � : This stage leverages the work done during the previous stages and focuses on transforming the value delivered to customers and other stakeholders in the ecosystem . Outcomes may include new business models and new types of product offerings , for example product-as-a-service . The objective is to innovate , become customer-centric , leapfrog the competition , enter new markets , and potentially create blue ocean markets .
The DX journey continues beyond this point � , where the focus shifts to optimizing and scaling of the transformed business to grow new revenue streams , accelerate profits , leverage blue ocean markets , and ultimately future-proof the organization .
1.2 DIGITAL ENTERPRISES
During the digital transformation ( DX ) journey , the DNA of the enterprise evolves , leading to the emergence of the digital enterprise � . This transition occurs when the organization achieves significant levels of digitization and digitalization , alongside organizational and cultural changes , and the seamless optimization and integration of physical and digital spaces . Becoming a digital enterprise is a relatively well-charted and highly rewarding endeavor , that results in a more valuable and agile organization 5 . It enhances the organization ’ s ability to pivot , disrupt business and markets , and integrate new technologies more effectively and efficiently .
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A major global bank ( top 5 ) involved in M & A activities has stated that becoming a digital enterprise can add 10 % to the market valuation of an organization .
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