Reinventing the business by transforming the core

Some researches define the core of the business as the set of capabilities that allows the entire business to run effectively. Organization’s core is the value proposition of its business grounded in strategy as enabled by its people, processes, and technology.

So, any transformation process that doesn’t address well those elements will not be effective because simply the legacy organization will definitely exert a gravitational pull back to old practices.

Digital transformation must determine Value proposition, the value the company provides to customers through its products and/or services. The transformation project should identify and evaluate current assets that are most important, and also, understand actual needs of customers.

Digital transformation needs preparing of proper talents who enable the organization to deal with the new situation.  This requires investing in building relevant digital capabilities that fit with the strategy and keep eyes on customers as they change the way they prefer and make purchases.

Those talents need a digital culture with a tendency to speed and continuous learning. Also, rebuilding rewarding systems that emphasize new culture and behavior is a must. So, new KPIs, promotion criteria and incentive systems are required.

To get a successful digital transformation, organizations need re-engineering processes and decision-making mechanisms to make them more aligned with digitizing concept. Increasing the level of automation will positively influence the speed of business processes and accordingly cut costs.

Without regard to what is already in place and with no focus on digitizing existing processes, the organization needs to identify the customer needs and preferences that matter most to the business and then design the touch-points, processes, and capabilities required to deliver those journeys.

Although technology is crucial for digital reinvention, but digitization is not just a technology deployment. So, there is a need to ensure that each IT investment is tied with real and robust business needs. Also, adjusting legacy systems and technology needed to be part of the new platform and its consistency with a digital world is a subject for assessment.