How to Create a Digital Transformation Strategy

Digital Transformation

There are fundamentally two avenues to creating a digital transformation strategy. The first is a bottom-up approach that relies on the initiative of individual business units to modernize the processes they have the most experience working with every day. The advantage of that approach is that it tends to achieve results quickly. The downside is that those efforts are typically uneven and may not result in a meaningful, sustainable competitive advantage because rivals can quickly replicate the same capability.

The second approach relies more on leadership from the top down. That approach typically involves the CEO, along with the board of directors, mandating the adoption of a series of digital business processes that transform how an organization operates at its very core.

Of the two strategies, the most widely employed to date has been a bottom-up approach, driven mainly by line-of-business executives. But as more organizations begin to appreciate the scope of what’s required to remain not just competitive, but also maintain their existence, more digital business initiatives are starting to be led from the top, says Juergen Lindner, senior vice president of SaaS for Oracle.

“It’s becoming a more strategic discussion,” says Linder.

Vendors Pursuing Digital Transformation Solutions from All Angles

Oracle at the Oracle OpenWorld 2018conference announced a raft of updates to a cloud application portfolio that now spans every major business function in the enterprise. Oracle is making a case for delivering those applications as a cloud service to both lower operational costs and make it simpler to employ advanced machine and deep learning algorithms to automate most business processes using, among other technologies, blockchain databases and digital assistants.

In fact, Oracle CEO Mark Hurd told conference attendees that Oracle expects 100 percent of all cloud applications will have artificial intelligence (AI) capabilities by 2025 and that 85 percent of all customer interactions will be automated.

 

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