What Are the Elements of Digital Transformation? | DreamFactory Software- Blog (2022)

What Are the Elements of Digital Transformation? | DreamFactory Software- Blog (1)

If the elements of digital transformation weren’t a priority for organizations before COVID-19, they’re at the top of the agenda now. According to Statistica, post-COVID digital transformation spending has skyrocketed in 2020 with an expected 10.4% increase by the end of the year. As the pandemic continues, businesses are facing remote team challenges and pressure to increase operational efficiency. Therefore, the trend toward digital transformation is likely to continue.

That being said, the successful implementation of a digital transformation strategy is neither straightforward nor easy. A recent BCG research study showed that “70% of digital transformations fall short of their objectives, often with profound consequences.”

Did you know you can generate a full-featured, documented, and secure REST API in minutes using DreamFactory? Sign up for our free 14 day hosted trial to learn how! Our guided tour will show you how to create an API using an example MySQL database provided to you as part of the trial!

Start Your Digital Transformation Now

(Video) Digital Transformation Framework

So, how do you transform your tech infrastructure without falling short of your objectives? For the highest chances of success, you need to focus on the following core elements of digital transformation:

  1. Define Your Digital Transformation Goals
  2. Build an Integrated Strategy
  3. Secure Executive and Middle-Management Approval
  4. Create an Agile and Flexible System
  5. Hire and Train for the Right Skills

1. Define Your Digital Transformation Goals

A common source of digital transformation failure is a lack of well-defined goals. Many organizations simply choose a handful of technologies because they are popular, trendy, or satisfy an isolated benefit – not because they can achieve the clearly-defined goals of a cohesive digital transformation strategy. This can lead to the implementation of technologies that (1) don’t get used by team members, (2) don’t integrate with the rest of the IT infrastructure, (3) don’t support larger business objectives, (4) result in more inefficiencies and costs than benefits, or (5) fail to balance the competing needs of different departments like marketing and IT.

In this respect, it’s important to research and plan your transformation goals – and the tasks, technologies, and processes that achieve them. Whether you want to redefine your business model, boost the efficiency of operations, or build a remote-working-friendly infrastructure, answering the following questions is an excellent launching point to define your digital transformation goals:

  • For what purpose? Identify the reasons for investing in digital transformation. Brainstorm all of the benefits of digital transformation for your organization. Include unique challenges for your organization that a new, integrated tech strategy will resolve.
  • What are the priorities? Define the “deal-breaker” priorities. These could relate to support for remote working, reduction of IT spending, achieving a more scalable app infrastructure, building a more agile/flexible business, boosting sales, increasing supply chain efficiency, or obtaining better business intelligence.
  • What are you going to do? Make a list of specific digital transformation tasks that support your goals and priorities. These could relate to breaking down and replacing legacy IT systems, evaluating new types of digital solutions, transferring specific systems to the cloud, hiring and training staff, and developing new applications to solve specific challenges.
  • What’s the implementation strategy? Work with your team to map out the steps required to implement your digital transformation tasks. Answer questions about leadership, governance, and resourcing. Determine whether to use pilots, incubators, or lighthouses – and answer questions about sequencing. Develop strategies to ensure that all new and existing technologies integrate with each other and work together in unison.
  • What are the benchmarks of success? Establish measurable benchmarks of success and/or specific business outcomes that allow you to see if you have achieved your digital transformation goals. These benchmarks could relate to the level of adoption across the organization, whether you have achieved leadership buy-in across the organization (particularly from the CIO and CMO), and the amount of IT savings you have achieved. Other benchmarks of success could relate to statistics on sales, sales funnels, team member productivity, and supply chain metrics.

2. Build an Integrated Strategy

Your company’s operational systems rely on a network of business systems, apps, and IT infrastructure components. The more seamlessly these apps and systems integrate with each other the better. In fact, integrating data and processes across multiple systems, organizational towers, and departments – while breaking through information silos – is the reason why most enterprises seek digital transformation in the first place.

The same concept applies to customer-facing systems. Your clients probably interact with a number of services when interacting with your SaaS products or web applications. These services could include web applications that display product information, chat portals for asking questions, payment portals, and other SaaS products. Although each of these services is a separate system of its own, all of them need to integrate with each other to provide a seamless experience.

(Video) The 9 Digital Transformation Elements CEOs Must Care About – Part 1

The more you automate and integrate each aspect of your operational infrastructure and customer-facing systems, the more you will satisfy customer expectations and improve staff efficiency. If your digital transformation plan fails to achieve this kind of integration, it could result in dramatically fewer sales, higher IT costs, lower levels of productivity, less accurate business intelligence.

3. Secure CMO, CIO, and Key Leadership Consensus

Large enterprises are dealing with increasing tech overlap across different departments — especially across their IT and marketing towers. Due to this overlap, it’s essential that organizational leadership — especially CMOs and CIOs — collaborate to reach consensus on any digital transformation strategies and technology. If not, their respective departments could choose to adopt mutually-exclusive solutions. Worse, you could find instances of “shadow IT” where one department uses a particular technology in secret, resulting in silos and blind spots within the organization.

A recent article from CIO.com stresses the importance of CIO-CMO collaboration: “It’s becoming clear that to effectively utilize and operate next-generation marketing and customer experience systems, the CMO and CIO must build a partnership to ensure the success of these tools.” The article goes on to quote Cynthia Stoddard, CIO and SVP at Adobe, who says: “As these systems become more complex and contain more data, the CMO and marketing team will benefit from working with the CIO and IT team to ensure that IT is optimizing both the operational and security aspects of marketing’s digital systems.”

Without key leadership consensus on your digital transformation objectives, the goal of building an integrated and transparent IT strategy will likely end in failure. The result will be a dis-integrated strategy where vital data is not available for business intelligence, and where IT over-spending is the norm. Conversely, when CMOs, CIOs, and other leadership sign off the plan, you increase the chances of digital transformation success.

Some Fortune 500 companies are actually “forcing” digital consensus within their organizations by merging their IT and marketing towers into one. This pushes IT and marketing departments into a position where they must work together as an integrated unit. It’s a radical solution to a common problem, but many see it as the only way forward.

(Video) Innovating Digital Transformation

4. Create an Agile and Flexible Infrastructure

Maintaining agility and flexibility is another element of successful digital transformation. One of the most popular ways to increase agility and flexibility is to transform legacy, on-premises systems into cloud-based microservices-based systems. By refactoring on-premises monolithic applications into networks of microservices that run in the cloud, organizations achieve greater agility, scalability, and location-independence. The microservices-based model makes adding, removing, updating, and scaling different services and features infinitely easier, faster, and more affordable.

Developers use a number of technologies to create agile and flexible microservices-based systems. One of these technologies is our product, DreamFactory — an iPaaS, API manager, and API lifecycle management tool that dramatically speeds up the process of safely integrating new services, features, and databases into new and existing systems.

Whether you achieve flexibility with a microservices-based infrastructure or not, it’s important to keep your eyes on all market, business, and tech developments before, during, and after your digital transformation process. This allows you to respond to new conditions as early as possible. You should also pay attention to the threat of “vendor lock-in.” Never forget that some of the most exciting tech solutions on the market offer convenience and ease of use, but they destroy your agility and flexibility because they lock you into their products. If you must submit to vendor lock-in, make sure that you’re marrying yourself to a product that will continue to innovate and stay competitive in the years ahead.

5. Hire and Train for the Right Skills

Sourcing IT talent with the right skills is a keystone element of digital transformation. Your IT staff needs to understand a range of cutting-edge technologies, what’s best for different use-cases, and where the tech landscape is headed. This ensures that you integrate the most appropriate solutions that will stay relevant in the years ahead. Hiring staff with the following experience will help this aspect of your digital transformation plans:

  • Data engineering
  • Data science
  • General app development
  • Web app development
  • Microservices-based development
  • API-first development
  • Cloud services
  • Cloud migration
  • App integration
  • Data integration
  • Remote team management

As for existing employees, they need the training to use new solutions effectively. You will also need to develop operational processes that ensure employees are integrating the new solutions into their daily work.

(Video) Why HCL Domino is Key to Your Digital Transformation

Did you know you can generate a full-featured, documented, and secure REST API in minutes using DreamFactory? Sign up for our free 14 day hosted trial to learn how! Our guided tour will show you how to create an API using an example MySQL database provided to you as part of the trial!

Start Your Digital Transformation Now

Make DreamFactory a Part of Your Digital Transformation Dream Kit

Now that you’ve finished this guide, you should have a clear understanding of the key elements of digital transformation success. By focusing on these areas during the planning, implementation, and maintenance phases of your digital transformation agenda, your team will stay agile enough to respond to any digital-era challenges.

Finally, we hope you’ll consider DreamFactory as an essential tool in your digital transformation dream kit. DreamFactory is an API-manager and iPaaS solution that makes it easy to integrate new services and features — such as SSO authentication, role-based access control, new databases, cloud-based services, and more — into your new and existing app and IT architectures. With DreamFactory, building the API plumbing and managing API calls between different elements of your projects is easier and faster than ever. Best of all, DreamFactory’s automatic API generation feature means that you can bypass the time-consuming task of hand-coding APIs.

(Video) Digital Transformation with Membership Management Software

Want to see how you can use DreamFactory to generate custom, fully-documented REST APIs, and integrate new technologies into your systems in minutes? Click here to sign up for a free hosted trial of the DreamFactory platform now!

FAQs

What are the 3 elements that define digital transformation? ›

There are three essential components of a digital transformation: the overhaul of processes. the overhaul of operations, and. the overhaul of relationships with customers.

What are the five elements of digital information technologies? ›

5 Components of Information Systems
  • Computer hardware. This is the physical technology that works with information. ...
  • Computer software. The hardware needs to know what to do, and that is the role of software. ...
  • Telecommunications. ...
  • Databases and data warehouses. ...
  • Human resources and procedures.

What is the most critical elements in the digital transformation initiatives? ›

Sanjiv, the Chief Technology Officer for Wipro's Global IT Business, the three main components of digital transformation are: Customer experience. Operational processes. Business models.

What are 6 pillars of smart operation? ›

The six pillars of digital transformation are experiences, people, change, innovation, leadership, and culture. Let's take a look at each pillar and to understand the backbone of the digital transformation.

What are the key trends in digital transformation in 2022? ›

Distributed cloud will be an emerging digital transformation trend in 2022 as more and more businesses move to the cloud. The distributed cloud gives businesses the power to connect data and applications across multiple locations, allowing for faster innovation and better resiliency.

What is a digital transformation framework? ›

Simply put, it is a system of rules, a long-term strategy used to guide businesses through the tricky landscape of digital transformation. It's a tool used chiefly by organizational leaders and consultants to analyze a company to help it reposition itself in today's digital economy.

What are the 4 types of digital business models? ›

Different kinds of digital business models
  • Free-Model (Ad-supported Model) ...
  • Freemium Model. ...
  • On-Demand Model. ...
  • E-Commerce Model. ...
  • Marketplace Model (Peer-to-peer, two-sided marketplace) ...
  • Ecosystem Model. ...
  • Access-Over-Ownership Model / Sharing Model. ...
  • Experience Model.
20 Apr 2021

What are some examples of digital transformation? ›

Examples of digital transformation are:
  • Transitioning into a remote-first workspace.
  • Using design thinking to analyze and optimize the customer journey.
  • Implementing automated customer service.
  • Using AI-driven insights to improve sales efficiency.
  • Automating employee performance management.
29 Apr 2022

What are the 3 factors of successful digital business transformation? ›

A closer look at customer experience can reveal whether transformation initiatives are paying off.
...
8 Factors for Successful Digital Transformation
  • Orientation. ...
  • People. ...
  • Processes. ...
  • Objectives. ...
  • Structure. ...
  • Insights & Intent. ...
  • Technology. ...
  • Execution.

What are the 6 elements of information system? ›

Hence, information systems can be viewed as having six major components: hardware, software, network communications, data, people, and processes.

What is the key elements of information system? ›

The six basic functions of information systems are capture data, transmit data, store data, retrieve data, manipulate data and display information.

What are the 5 digital operating models? ›

The digital operating model consist of five elements that logically build upon one another: Processes, decisions, capabilities, incentives and organizational structure, which we call DIPOC (for practical reasons).

What is the no1 element needed to have a digital business strategy? ›

Clear and measurable objective

Based on the results of this analysis, executives can laser focus on one area and build a vision of how it can be reinvented. Having such a clear purpose is the number one skill required from digital transformation leaders, according to Forbes.

What are the pillars of technology? ›

The 4 Pillars are:

Recoverability. Reliability. Security. Productivity.

What is digital transformation in TCS? ›

TCS' strategy for enabling all established organizations to move forward with digital transformation is centered on an integrated, modern BFSI platform that enables insurers and other financial services companies to drive sustainable growth through superior customer experiences.

What are the pillars of the IT transformation Dell? ›

To do this, Dell EMC is basing its strategy around four pillars: Digital transformation, the trend we all know and love which transforms the business as a whole; IT transformation, which transforms IT specifically; Workforce transformation, which relates to how employees work; and Security transformation, necessary to ...

What are the top 5 digital transformation trends? ›

The new trends in digital transformation include hybrid work, intelligent search, AIOps and machine learning, customer data platforms (CDPs), and integrated Agile, DevOps, and ITSM platforms.

What is the next big digital transformation? ›

Cybersecurity is another major digital transformation issue that companies face in 2022. With great data comes great responsibility and to retain their reputation and the customer's trust, businesses need to be able to protect their databases from breaches and attacks.

What are the 6 steps for implementing a digital strategy? ›

6 steps for digital transformation
  1. Step 1: Identify your transformation objectives. ...
  2. Step 2: Study technology enablers in the market. ...
  3. Step 3: Envision the future platform for digital business. ...
  4. Step 4: Master the digital services lifecycle. ...
  5. Step 5: Organize for digital business innovation.
1 Oct 2015

What is a digital transformation roadmap? ›

A digital transformation roadmap is a defined process that explains how an organization can embrace digital technology to achieve its business goals and ultimately become a more sustainable, future-proof business. Your roadmap is an essential—but separate—aspect of your digital transformation strategy.

What are the benefits of digital transformation? ›

What are the Key Benefits of Digital Transformation?
  • Increases Customer Satisfaction. ...
  • Drives Data-Based Insights. ...
  • Enables Software Monetization. ...
  • Enables High-Quality User Experience. ...
  • Encourages Collaboration & Improves Communication. ...
  • Increases Agility. ...
  • Limits Human Error. ...
  • Encourages an Environment of Employee Excellence.

How do you identify the process to start transformation? ›

7 Steps to Digital Transformation
  1. Create an Innovation-friendly Culture. ...
  2. Assess Your Current State. ...
  3. Identify the Business Processes to Transform and Create Your Strategy and Budget. ...
  4. Identify the Technologies You'll Use. ...
  5. Put the Right People in Place. ...
  6. Create a Digital Transformation Roadmap. ...
  7. Determine Your Goals with KPIs.
22 Apr 2019

What are digital technologies? ›

Digital technologies are electronic tools, systems, devices and resources that generate, store or process data. Well known examples include social media, online games, multimedia and mobile phones. Digital learning is any type of learning that uses technology. It can happen across all curriculum learning areas.

How do you make a transformation plan? ›

10 Steps for Successfully Creating Digital Transformation Plan
  1. Be Clear with Your Purpose. ...
  2. Set your vision and mission. ...
  3. Understand and Identify the Needs of your Customers. ...
  4. Include the right leaders. ...
  5. Give culture a focus. ...
  6. Include gathering expertise and resource to your plan. ...
  7. Select the most suitable technology.
4 Aug 2021

What is the most important transformation phase? ›

The most important moment in a digital transformation is at the very start, where decision making is nimble and it's easiest to affect valuable change.

How many types of digitalization are there? ›

There are four types of digital transformation: business process, business model, domain, and cultural/organizational. We often see corporations focused solely on process or organizational transformation. Failure to address all four types leaves significant value on the table.

What is the difference between digitization digitalization and digital transformation? ›

Digitization is the first step in digital transformation, which must occur before digitalization is possible. In turn, digitalization is necessary before digital transformation is possible.

What are examples of digital projects? ›

The most common examples of digital projects are projects that create digital products or experiences.
...
This could include:
  • Website or web application design and implementation projects.
  • Native app design and development projects.
  • Software development projects.
  • Digital marketing campaigns.

What is industry 4.0 and digital transformation? ›

The digital transformation offered by Industry 4.0 has allowed manufacturers to create digital twins that are virtual replicas of processes, production lines, factories and supply chains. A digital twin is created by pulling data from IoT sensors, devices, PLCs and other objects connected to the internet.

What are the key trends in digital transformation in 2022? ›

Distributed cloud will be an emerging digital transformation trend in 2022 as more and more businesses move to the cloud. The distributed cloud gives businesses the power to connect data and applications across multiple locations, allowing for faster innovation and better resiliency.

What are the 8 essential elements of digital literacy? ›

The eight components include creativity, critical thinking and evaluation, cultural and social understanding, collaboration, find and select information, effective communication, e-safety, and functional skills (Hague & Payton, 2010, p. 19).

What is the most important element of digital citizenship? ›

Treating others with respect and empathy are key elements of digital citizenship. Some states and countries now require that digital citizenship lessons be taught within schools and communities. Rules, policies and laws help to frame the direction of courses to help everyone be better online users.

How many elements of digital citizenship are there? ›

Digital Citizenship classifies nine foundational elements in the following three guiding principles: Safe, Savvy and Social (or S3). The tenets of S3 are a way to support, as well as reinforce the framework of the themes of digital citizenship.

What are the 6 steps for implementing a digital strategy? ›

6 steps for digital transformation
  1. Step 1: Identify your transformation objectives. ...
  2. Step 2: Study technology enablers in the market. ...
  3. Step 3: Envision the future platform for digital business. ...
  4. Step 4: Master the digital services lifecycle. ...
  5. Step 5: Organize for digital business innovation.
1 Oct 2015

What is a digital transformation framework? ›

Simply put, it is a system of rules, a long-term strategy used to guide businesses through the tricky landscape of digital transformation. It's a tool used chiefly by organizational leaders and consultants to analyze a company to help it reposition itself in today's digital economy.

What are some examples of digital transformation? ›

Examples of digital transformation are:
  • Transitioning into a remote-first workspace.
  • Using design thinking to analyze and optimize the customer journey.
  • Implementing automated customer service.
  • Using AI-driven insights to improve sales efficiency.
  • Automating employee performance management.
29 Apr 2022

What is a digital transformation roadmap? ›

A digital transformation roadmap is a defined process that explains how an organization can embrace digital technology to achieve its business goals and ultimately become a more sustainable, future-proof business. Your roadmap is an essential—but separate—aspect of your digital transformation strategy.

Which is the first stage of a digital transformation? ›

1 • Enabling digital channels

The first stage of the digital transformation journey is to enable multiple digital channels to sell products and serve clients.

What are the benefits of digital transformation? ›

What are the Key Benefits of Digital Transformation?
  • Increases Customer Satisfaction. ...
  • Drives Data-Based Insights. ...
  • Enables Software Monetization. ...
  • Enables High-Quality User Experience. ...
  • Encourages Collaboration & Improves Communication. ...
  • Increases Agility. ...
  • Limits Human Error. ...
  • Encourages an Environment of Employee Excellence.

What are the top 5 digital transformation trends? ›

The new trends in digital transformation include hybrid work, intelligent search, AIOps and machine learning, customer data platforms (CDPs), and integrated Agile, DevOps, and ITSM platforms.

What is the next big digital transformation? ›

Cybersecurity is another major digital transformation issue that companies face in 2022. With great data comes great responsibility and to retain their reputation and the customer's trust, businesses need to be able to protect their databases from breaches and attacks.

Videos

1. Quixy Demo Video | Digital Transformation | Business Process Management | Workflow Automation
(Quixy Official)
2. How the IoT drives digital transformation and customer success
(BoschIO)
3. Digital Transformation Projects: 5 Steps to Keep in Mind
(Cognitive Creators)
4. Digital Transformation, Testing and Automation
(EuroSTAR Software Testing Conference)
5. Digital Strategy & Architecture- Embracing Digital Transformation: Episode 24 | Intel Business
(Intel Business)
6. Navigating Digital Transformation Event 2019
(Canon Europe)

Top Articles

Latest Posts

Article information

Author: Kieth Sipes

Last Updated: 08/07/2022

Views: 6476

Rating: 4.7 / 5 (47 voted)

Reviews: 86% of readers found this page helpful

Author information

Name: Kieth Sipes

Birthday: 2001-04-14

Address: Suite 492 62479 Champlin Loop, South Catrice, MS 57271

Phone: +9663362133320

Job: District Sales Analyst

Hobby: Digital arts, Dance, Ghost hunting, Worldbuilding, Kayaking, Table tennis, 3D printing

Introduction: My name is Kieth Sipes, I am a zany, rich, courageous, powerful, faithful, jolly, excited person who loves writing and wants to share my knowledge and understanding with you.