Published 03. Oct. 2018
Digital Transformation Journey: The Road Ahead
What constitutes a truly digital enterprise? Explore the collaborative roles of human resources, finance, and IT in the transformation roadmap.
Technological advancement is all about improving lives. Therefore, businesses that are jumping on the transformation bandwagon must first adopt the value-creation mindset. This means having a customer-centric strategy in place for the development of new products or services, regardless of the industry.
As such, organisations must challenge the status quo to keep up with the changing market conditions. It’s not about going towards the displacement of incumbents, but about building a truly digital enterprise and reinventing the way they do businesses.
Eliminate Siloes to Revamp Business Processes
First things first, all functions must accelerate strategic alliances for the digital battlefield – fighting against legacy systems to allow innovations to take shape. It requires leaders to throw the traditional HR playbook away to welcome the age of cross-functional collaboration. From front to back-office operations, everyone must evolve themselves to contribute to end-customer experiences proactively.
Our leadership survey, conducted among 300 high-profile delegates, indicates that siloed organization structure is among the biggest roadblocks to digital transformation. This is further supported by EY’s Digital Transformation for 2020 report, whereas the key people-centric components of a successful digital transformation are defined as below:
- Governance as a process, not a project
- Cross-function collaboration
- Single view of customer and organization
To translate these findings into action, start by aligning the digital mindset and capabilities across all departments, including stakeholders as well. Each and everyone in the team must be part of the holistic transformation picture, revolving around the customer journey.
Key Drivers for Digital Growth
With IT team at the core of a complete organisation-wide digitization, the execution then lies on the enabling roles of human resource and finance.
Digital HR & Analytics
There is no shortcut to transformation without first empowering individuals across the organization. Hence, the role of HR is indispensable on the digital roadmap. Their priority is to cultivate a supporting culture with focus on eliminating siloes while boosting employee engagement. Being the catalyst for change, HR team must be innovation-oriented to drive technology use within the company, from moving to the cloud to integrating resource planning systems at large. The ultimate goal is to lift the legacy up and disrupt from within.
Internal Audit and Fraud Analytics
To achieve that, finance steps in as the co-pilot in driving technology adoption. With data analytics and fraud detection and prevention at the heart of the finance reinvention, business leaders are able to explore digital investment without relying on gut-based decisions. Furthermore, technology advancement, combined with the expertise of skilled auditors, also enables audit professionals to take a much deeper dive into the financial facets of an organization and provide insights that support high-quality audit.
Read more: FINANCE LEADERSHIP IN THE DIGITAL ECONOMY
Last but far from being least, IT team acts as the gatekeeper for digital growth, battling the cyber-threats that are evolving by the day. While cyber security threat is rated second among the highest risks hampering future growth in ASEAN and among top five in APAC, only a small number of CEOs believe that their organisation is well prepared for a cyber-attack (source). CISOs have been positioned on a constant alert to monitor upcoming cyber-attacks progressively due to the increasing speed in sophistication and technological advancement. Therefore, it is imperative that businesses today invest in developing an effective cyber resilience.
Act Now: Becoming a Digital Enterprise
Moving from a siloed structure to a team of teams must be led by a shared vision and balanced responsibilities. This is the foundation for disruptors to challenge the status quo.
With the support from HR, directional strategy from finance and anti-threats shield from IT, businesses must leverage their digital capabilities to create more values for customers and shareholders, rather than driving more sales. In fact, technology can only do too much, companies that thrive in the digital age are those who can create optimum customer satisfaction through cross-functional and cross-industry collaborations.
Realizing the impact of these core functions to revolutionize businesses, Management Events is bringing together experts from the industries to exchange thoughts as well as solutions to accelerate their digital transformation. From digital HR, data-powered finance and internal audit to AI and blockchain exploitation in cyber security, join us in the 3-day Digital Series conference and gain insights on each industry, coming soon in 2019!