The city of Kyoto is called Japan’s cultural capital. It is also home to some of the oldest businesses on the planet: the Ichiwa confectionary shop in Kyoto is reputed to have opened in 1000 CE. An older business is Genda Shigyo, a ceremonial paper company that set up shop in 771 CE. One wonders what has sustained these businesses to survive, let alone thrive, over the centuries!
Typically, businesses hunt for a magical elixir or longevity pill to last profitably for decades at least. So what really keeps the wheels of business running? One common thread among long-lasting businesses is reinvention. This usually means shedding unprofitable lines of businesses, acquiring new and profitable ones, and nurturing lines that are working well.
Admittedly, the world today is firmly in the digital economy, although the ‘digital’ part is not universal. Many businesses across the globe are still striving for digital transformation.
There are two common misconceptions about digital transformation:
The first misconception is that digital transformation is only about technology. The words ‘digital transformation’ evoke imagery of advanced digital tools such as Artificial Intelligence or AI, and technologies such as IoT, humongous amounts of data being parsed for insights and so on. While all of these, and more, are true, it is not too farfetched to say that digital transformation is an irreversible change in the DNA of the organization.
The second misconception is that digital transformation is a one-time event: the enterprise brings in a partner who swoops in with the latest technology, trains the teams and et voila: the company is digital. This is far from the truth. Digital transformation is a continuous process for any organization that goes much beyond technology.
Let us examine what the journey entails:
think digital: The disruptions of the last two decades have been truly mind boggling. Global economies have seen new business models emerge over the years, models that have upended centuries of the ways of doing business. From B2C aggregators such as Uber who have reaped the benefits of aggregating users and services, without owning either, to B2B platforms that have harvested unprecedented connectivity and supply chain efficiencies, we have seen the massive changes that globalization has ushered in. The rate of the pace of change has only accelerated after the lull of the pandemic, with the commercialization of Generative AI. Anyone contemplating entrepreneurship must think digital and imbibe the first precept: every business today is a digital business.
plan digital: With every connected citizen across the globe having access to genAI tools, and agentic AI sweeping the corridors of enterprise technology planning, strategy, planning and downstream decision making cycles have shortened dramatically. The smallest business can now leverage agentic AI to present dynamic and hyperpersonalized user experiences to their customers. AI agents can build dynamic-pricing backed offers and packages for customers, leading to improved conversion rates. From reduced error numbers in supply chains and automotive shop floors, to improved efficiencies in service deliveries, digital businesses are growing at unprecedented rates. Building in these efficiencies from the planning stage is an imperative need for businesses.
This brings us to the second precept of successful digital transformation: the strategic objectives of the business integrate technology-driven practices to harvest new efficiencies.
live digital: When an enterprise and its leaders internalize the fact that it is a digital business, and an integral member of the global digital economy, the very DNA of the way the enterprise operates transforms. The enterprise then lives on a bulwark of digitally-backed trust:
- Trust in employees, who can work anytime, from anywhere
- Trust in quality processes and compliance, that seeps into every interaction with partners, suppliers, and every stakeholder in the ecosystem
- Trust in a well-defined brand and brand values, that is showcased in every interaction with prospects and customers, to build brand loyalty.
A digital tool or technology is the first recourse for every planned operation or initiative. Traceability, reliability and quality are built into every facet of the business. The digital aspect of the enterprise fades unobtrusively into the background and the focus shifts to the people: high-performing people who can innovate, solve real-world problems and serve customers, living up to the values of the enterprise.
This is the essence of sound digital transformation: trust, compliance, and values are baked into the digital infrastructure of the enterprise.
Start your digital transformation journey today. Reap the benefits of the digital economy.
how Infosys BPM can help
With mature services, methodologies, and solutions that can help global businesses transform how they think, plan and live in the digital economy, Infosys BPM can support enterprises in the digital transformation journey, no matter what part of the journey they are in. Whether banking or supply chain management, customer service or cybersecurity, Infosys BPM can support your strategic objectives.
