The Top 6 Success Factors for Digital Transformation (Part 1 of 2)

Digitization is “transformational,” but what does that really mean? Leveraging digital technology enablers such as social, mobile, cloud, analytics and Internet of Things can radically alter the way enterprises engage their customers, innovate in emerging markets, and optimize their operations. However, what are the various dimensions of “transformation” and how can digital enterprises be successful in their digitization endeavors?

Over the past few weeks I traveled to Tokyo, Sydney, Melbourne, and Istanbul to speak with Pega customers and potential customers – and in each place I focused on this very important topic: Digital Transformation. It was exciting to see how organizations are transforming themselves especially through Pega’s model-driven Build For Change® platform as well as complementary agile methodologies. Digital Transformation is indeed happening! We are now witnessing the effectiveness of digitization in customer experience transformations, as well as automation of end-to-end digital processes resonating across the globe.

There are 6 top success factors that are helping enterprises achieve digital transformation with concrete returns on their investments in digital technologies:

1. Digital Engagement and Legacy Modernization

The more enterprises attempt to become digital, the more they will feel the weight (and yes, the pain) of legacy applications and systems. In order to transform digitally, they need to be able to engage customers consistently across multiple digital channels, without being bogged down by siloes and archaic systems that are difficult to change or extend. Digital Transformation here means Modernization, Application Rationalization and Simplification. Each has its own nuance and emphasis for Digital Transformation. But it all comes down to having a robust innovation and digitization system that helps them quickly materialize innovative, differentiated, and digitized solutions – while leveraging existing systems of record. For further info, check out these assets:

 

2. Empowering Operations, Business and IT

Transformation is about empowerment – for all communities in the digital enterprise: operations, business, and IT. In regards to operations, the intelligence in digitized Build For Change platform is allowing smarter and more intuitive guided interactions for empowered knowledge assisted workers. Increasingly, business is becoming empowered through becoming participants in building and automating innovative solutions. Business and IT are collaborating through a robust modern-driven environment that helps them communicate through a common digital language. IT is also empowered through increased productivity as well as its ability to innovate while leveraging digitization trends. This empowerment is often reflected in new digitization roles. Check out this video and white paper.

3. Digitization through Agile Digital Enterprise Methodologies and Competency Centers

To be successful, the Build For Change® platform needs to be complemented with agile best practices and methodologies. An iterative methodology is the foundation for Digital Transformation. The word “transformation” is a bit scary. Digital Enterprises need to transform themselves incrementally – having the transformational digital vision while starting small. Agile methodologies need to leverage and reflect the digitization flexibility reflected in the social, collaborative and innovative nature of workers and their work. Furthermore, in their maturity roadmap, digital enterprise Competence Centers (or Centers of Excellence) need to evolve to enable, govern, and radiate the transformation across the enterprise. You can find out more at:

 

Transformation should not be scary. In fact, it is scarier to ignore Digital Transformation – it is a matter of survival for modern enterprises. In the next blog we’ll cover the other three success factors for Digital Transformation.


In Build for Change: Revolutionizing Customer Engagement through Continuous Digital Innovation, Pegasystems Founder & CEO Alan Trefler shares his insight on what organizations can do to serve the next generation of customers and survive the pending "Customerpocalypse".