How Large and Small Companies Do Digital Transformation
Digital Transformation has been a hot topic for the past few years as organizations of all sizes try to keep pace with the rapidly changing business environment. With the advent of new technologies, the integration of software solutions, and the explosion of data, companies are struggling to adapt their operations to the digital age.
The goal of digital transformation is to leverage and integrate digital technologies to optimize business operations, enhance customer experiences, and create new revenue streams. Companies do it because more and more new business startups, using new technologies, can outrun and outsmart old large companies. Think of all the smart self-service processes (like online ordering) that small companies offer that speed up a lot of work.
Generate a Cyber Security View of the Business Processes and Applications to start your Digital Transformation Strategy in the Business.
Drivers
So, to survive, these large and small companies do digital transformation, digitization, digitalization, or automation. There are several drivers behind digital transformation, including:
- Customer Expectations - Customers today expect seamless, personalized experiences across all channels and touchpoints.
- Competitive Pressure - Competition is increasing across all industries, and businesses must initiate digital technologies to stay ahead.
- Technological Advances - Technological innovation is accelerating, creating new business opportunities to improve operations and customer experiences.
- Data Explosion - The amount of data generated is growing exponentially, creating new possibilities for businesses to analyze and leverage data to drive insights and decisions.
- Artificial Intelligence - With new solutions like artificial intelligence (AI), you can provide services, like fraud detection, that are impossible without AI.
- Digitalization as Catalyst for Sustainability - LEs and SMEs must embrace digital technologies en masse to stay competitive, foster innovation, and drive sustainability.
Digital Transformation definition, what is it?
To understand this concept it is best to know the digital transformation definition:
- Digital transformation is the process of using digital technologies to fundamentally change how businesses operate, mapping business processes (new or modified), culture, and customer experiences to meet changing business and market requirements to deliver value to customers. This reimagining of business in the digital era is digital transformation.
Many organizations use a framework to guide their transformation. The visualization above shows a much-used example of that. Read more about Digital Transformation (Wikipedia).
Challenges
Looking around, you probably see many things that are still duplicated and replicated, slowing down processes or introducing mistakes. Data is often copied three or four times in many countries in payment processes. Still, most invoices are not sent digitally in XBRL.
In many hospitals, temperature measurements with thermometers are still written down manually and entered into a computer. Later, this data is printed for use by other people. This can introduce a lot of capital errors.
Digital transformation can also present several challenges, including:
- Resistance to Change - Implementing digital transformation solutions requires significant change management efforts, and some employees may resist change.
- Integration Issues - Integrating new digital technologies with legacy systems can be challenging and require significant IT resources.
- Skills Gap - Digital transformation solutions often require new skills and capabilities, and some organizations may struggle to acquire and develop the necessary talent.
- Cybersecurity Risks - As businesses become more reliant on digital technologies, cybersecurity risks increase, and businesses need to implement robust security measures.
Blueprints of Digital Transformation diminish Cybersecurity Risks.
No More Duplication of Work or Replication of Data
Today's information technology solutions make it unnecessary to duplicate work and replicate data that can be shared or centralized. Instead of working in silos, we can all work together, sharing and using consistent data from single sources of truth.
For instance, countries together in a single market, like the EU or Caricom, can reuse or share one border management system and one single digital payment solution. Also, organizations within one enterprise group can reuse or share one sales system, one reused list of clients or one payroll system, and one reused list of employees.
The keywords are (cyber) security, standardization, open interfaces, protocols, and services. Certain company standards must be used or migrated towards in all processes and applications. And still, this leaves room to be unique with your culture and identity in a group.
For example, there is one communication protocol on the internet: IP6. Every website in the world is built with HTML. Still, every website is different. Standardization makes things easier and cheaper but does not take away your uniqueness. If a group of countries or groups of organizations create a single shared digital space, it does not take away their uniqueness. It just gives more room for their own culture and identity.
Smart Cities and Smart Organizations
More and more cities and organizations will become smart soon through digital transformation. A city or organization is only smart when it uses IoT (measuring devices) and the collected data to plan things better.
In a smart city, you want to prevent congestion, power fall-out, peak loads, etc. This can be accomplished with IoT and data and by doing trend analysis. In a smart organization, you want to prevent fraud or people from leaking secrets. This can be accomplished with AI.
Implementing IoT and AI in your city or company is challenging. The answer is using Enterprise Architecture, Concepts, Principles, and Standards.
Smart Factories
Smart factories are manufacturing facilities that use advanced technologies information such as the Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML) to automate processes and optimize production. They are designed to be flexible, adaptable, and efficient, able to adapt quickly to changes in demand and market conditions. Smart factories use data analytics and real-time monitoring to track performance, identify bottlenecks, and improve efficiency.
A blueprint of the digital transformation and/or even building a digital twin or digital ecosystem enables businesses to optimize their production processes, reduce downtime, and improve resource utilization, like renewable energy. This can lead to increased efficiency and productivity. Businesses can reduce their costs and improve their bottom line by identifying inefficiencies and optimizing production processes. Data analytics and real-time monitoring allow businesses to identify quality issues quickly and take corrective action. This can lead to improved product quality and customer satisfaction.
Automation and AI-enabled systems can work faster and more accurately than humans, leading to higher production output levels. Automation reduces the need for manual labor, lowering production costs and improving profit margins. Smart factories can optimize production processes, identify bottlenecks, and make adjustments in real-time, leading to greater efficiency and reduced downtime. Advanced sensors and analytics can detect defects and quality issues early, reducing waste and improving product quality. Robotics and automation can perform dangerous tasks, reducing the risk of injury for human workers.
Driving Digital Transformation with Dragon1 Software
Dragon1 Software is a powerful platform that can be used to facilitate digital transformation by creating enterprise visualizations of strategy, security, processes, applications, data, infrastructure, and software solutions integrated in SMEs and LEs.
It offers a wide range of features that can help businesses identify areas where they can initiate digital technologies to improve their operations, improve their digital capabilities, and manage their digital transformation strategy.
Here's a step-by-step guide using Dragon1 enterprise transformation technology platform for digital transformation:
- Identify areas for improvement: The first step in any digital transformation program is identifying areas where technology can improve business operations. Use Dragon1 to create visualizations of your current state architectures, systems, and processes and identify areas with bottlenecks, inefficiencies, or opportunities for innovation.
- Define goals and objectives: Once you have identified areas for improvement, define specific goals and objectives for your digital transformation solutions. Use Dragon1 to map enterprise visualizations showing how your business will operate after the complete transformation.
- Align IT with business objectives: The Dragon1 platform enables businesses to align their IT capabilities with their overall business objectives, ensuring that technology investments are targeted and impactful.
- Create a roadmap: Develop a roadmap that outlines the steps you will take to achieve your digital transformation goals. Use Dragon 1 for mapping data visualizations that show how each step in the process will contribute to achieving your goals.
- Collaborate and communicate: Use Dragon 1 to facilitate collaboration and communication among team members. Share information, discuss ideas, and make real-time decisions to improve the transformation process's speed and efficiency.
- Implement changes: Once you have developed a roadmap and identified the steps you need to take, it's time to implement changes. Use Dragon1 to monitor progress, identify areas where adjustments must be made, and ensure that your digital transformations stay on track.
It comes to breaking down your organization into several themes (often your processes, products, or services) and, per theme, designing a Dragon1 Atlas. A Dragon1 Enterprise Architecture Atlas or Design Book is a set of visualizations that show a theme's strategies, architecture, and transformation. For instance, the production process, the customer services, or even the business product line.
Almost every Dragon1 Atlas or Design Book contains a strategy map, customer journey map, architecture blueprint, and roadmap. So you will also design the corresponding visualizations for every theme.
Bring digital to live: Map your strategies and processes.
To be able to do organizational transformation, you need to know what you want to strive for and in which direction you want to be heading. Next, you need to know (to analyze) the current state of the country or organization, and you need to know (to design) the desired future state. And next, you need to define transformation scenarios.
You can create designs and visualizations and use templates to reach high productivity for all these things.
Benefits of Software Solutions Integrated in SMEs and LEs
Digital transformation is a critical process for businesses looking to stay competitive and drive growth in the digital age. By leveraging digital technologies to optimize operations, improve customer experiences, and create new revenue streams, businesses can create value and stay ahead of the competition.
However, digital transformation also presents several challenges, and businesses must carefully manage the process to ensure success. By addressing these challenges head-on and continuously refining their digital transformation strategy, businesses can realize the full benefits of digital transformation.
- Improved Efficiency: Digital transformation with Dragon1 Software can help organizations automate processes, reduce duplication of effort, and improve efficiency. This can lead to cost savings and increased productivity.
- Enhanced Customer Experience: Digital transformation can help organizations better understand their customers and deliver personalized experiences. Dragon1 Enterprise Architecture Software can help businesses achieve this by providing tools for analyzing customer data and improving customer engagement.
- Competitive Advantage: Digital transformation can give organizations a competitive advantage by enabling them to adapt to changing market conditions quickly. Dragon1 provides a platform for businesses to innovate and develop new digital capabilities.
- Increased Agility: Digital transformation can help organizations to become more agile and responsive to change. Dragon1 Software provides tools for modeling and managing digital transformation strategy, enabling businesses to make informed decisions and adapt to new challenges.
- Transparent Analysis: Dragon1 Software provides powerful analytics tools to help organizations identify trends and patterns in their data. This analysis can be used to inform decision-making and drive continuous improvement.
- Streamlined Integration: Dragon1 Software can integrate many other systems, including ERP, CRM, and HR. This allows organizations to streamline their digital transformation processes and reduce duplication of effort.
- Data Automation: Automation is a crucial part of digital transformation software. Dragon1 provides tools for automating processes, such as data collection and analysis, to improve efficiency and accuracy.
If you are interested and want to discuss your case with us, you can contact us anytime by sending an email to info@dragon1.com or calling +31 317 411 341 (in the Netherlands).
A Best Practice: Debt Reporting and Calculation
- Step 1: PRIORITIZE - Pick a theme, fi: a citizen looking at their debts in a single debts assistance view, showing all the outstanding debts and calculating the debts.
- Step 2: STRATEGY MAP + PROGRAM OF REQUIREMENTS - Define the goals and objectives, like reducing errors and improving accuracy, including all parties. And write a program of requirements from key stakeholders (including budget per requirement)
- Step 3: CURRENT STATE ARCHITECTURE BLUEPRINT - Analyze and visualize the current state of the various scattered solutions that manually and automate take care of this. (This can be a real iceberg with many hidden dependencies and interrelationships).
- Step 4: FUTURE STATE ARCHITECTURE BLUEPRINT - Design and visualize the future state where many more activities are automated, activities are deduplicated, data is dereplicated, software solutions integrated and many open standards for interfacing are used.
Ensure the design contains concepts, principles, and standards with proven results. For instance, an open standard that is increasingly used with proven is JSON API
- Step 5: ROADMAP - Create a roadmap that shows when what is changed, what the impact of the change is, and how the impact is handled.
- Step 6: PLAN - Plan and time-box the various project changes well.
- Step 7: EXECUTE - Carry out the changes, and in case of issues, return to the previous step to redo them.
- Step 8: FINISH - Stop the changes, communicate the changes, and educate people well.