Embracing Digital Transformation in the 21st Century
The evolution of business & IT collaboration in last few decades have seen waves of transformation both in business as well as IT segments. For centuries businesses have had to transform and adapt in order to survive. The type of transformation undertaken has invariably been governed broadly by business goals an organization seeks to achieve together with the business environment it needs to flourish.
These transformations can clearly be demarcated based on the inventions that have driven consumer behavior and growth of technology as an enabler of business growth. Over the centuries, the pace at which organizations have had to transform themselves has witnessed rapid growth. The time taken to transition between ages has now progressively declined.
In last few decades we have seen business & IT transformation pass through various stages of growth and innovation. These stages are:
1. The Mainframe or Green Screen Era
2. Client Server Technologies (C++, VB etc.)
3. Web Technologies (Advent of Internet & its Boom)
4. N-Tier or Distributed Architecture (ESB, EAI, thin clients, smart client)
5. Service Oriented Architecture (SOA)
6. SMAC (social, mobility, analytics and cloud)
Today we are in digital age where economies across the globe are extremely intertwined and power rests in the hands of consumers with role of consumers not limiting to buyers only. In a majority of cases, consumers are producers and co-creators as well. The digital age has at its forefront a new breed of entrepreneurs that are breaking all traditional mindsets to how businesses are run. The digital age also have opened up a global landscape where customers and competition aren't just in home markets but can be anywhere in world.
The Digital Age (Next 15-20 years)
We have just entered the digital age. It is an age that is going to be marked by infinite power to consumers. Consumers having access to significant technology resources will play a key role in determining how businesses needs to evolve & businesses are being forced to offer new age products and services.
The age will witness the emergence of organizations that co-create with customers. There will also be growth in amount of data created by consumers and their networks. Organizations will begin to leverage this vast ocean of data to evolve into business that can survive in a data driven, technology enabled world.
The digital age is very different in its impact on business from the various ages discussed. It is marked by very little room for error in business. Organizations not only need to transform their products, services and processes to deliver the same, but also in many cases fundamentally consider restructuring their business.
Today in digital age, Organizations are being forced to change their entire outlook, undertake structural changes and implement the same at a rapid pace. These changes need to iteratively evolve to account for the changing mindset of an empowered customer. The organizations that fail to match pace might fail to survive.
As per our research estimates, over USD 30 trillion of market capitalization would be disrupted by digitalization. This disruption will impact 8 key industry verticals. This also indicates that in the next 2-3 years, over 550 companies in the Forbes 2000 list would move out, and be replaced by organizations that are far more tuned to a digital universe.