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Digital Transformation Myths & Truths

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SEPTEMBER 2017 2 Digital Transformation Myths and How They Hold You Back Most companies have learned that digital transformation isn't easy, and often the challenges appear when they try to do too much too fast. By Jonathan Bingham T he term "digital transformation" has a nice ring to it, but few organizations understand the true meaning of the words. Most believe it simply refers to moving away from inefficient, outdated technologies. However, the real definition of digital transformation necessitates a fundamental shift or evolution of your business model, changing the very way in which your business is conducted. Few organizations complete full-fledged digital transformations. For instance, updating an outdated mainframe system to a modern, service-oriented architecture in the cloud is not a digital transformation. A brick-and-mortar bank shifting its focus to an electronic online presence with new products and services is. It's important to acknowledge that while many organizations either believe that they need a digital transformation or are in the midst of one, few actually require a large business transformation. Yes, many businesses could benefit from leveraging cutting- edge enterprise technologies to expand their products and services, or optimize their revenue, market share, and customer experiences. However, it's a misconception that the majority of organizations need to digitally transform who they are as a business in order to improve those things. Below are three additional myths about digital transformation that today's businesses need to overcome: Myth 1: Digital transformation is a standalone exercise. Most of the time, a digital transformation is a collection of initiatives that all share a common theme. These initiatives build on each other, resulting in larger, cumulative change. Also, it's important to recognize that digital transformation isn't a solitary exercise. It requires groups of people committing to change and revamping the way they do things together as opposed to changing one thing they already do individually. Myth 2: Digital transformation can be completed in one big step. Most organizations have a picture in their mind of what successful digital transformation looks like. However, if they were to use that picture of success for their implementation plan, analysis paralysis would inevitably ensue. Businesses need to work on key initiatives one at a time and aim the outcome of each one in a manner that will facilitate transformation over a period of time. For instance, incorporate new technologies progressively while you extract value out of older technology investments, until the legacy pieces can be eventually replaced. Myth 3: Digital transformation involves moving to the cloud. Often, technology vendors muddy the waters and confuse C O N T E N T S P O T L I G H T InfoArchive Customer Success Story: BMO Financial Group P R O V I D E D B Y < P R E V I O U S N E X T >

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