The digital imperative replaces the digital transformation

Thanks to its strong position in the technology industry, Microsoft is in a good position to set new trends. So when Satya Nadella saysthat business leaders need to go beyond digital transformation, then that is quite true. The digital imperative implies more than urgency. It implies a necessity. Digitalization efforts are not reserved for sophisticated companies with large technology budgets. They are necessary for "every organization in every industry."

The shift to digitization as a necessity signals the new major role that technology plays in our world. Technology no longer exists only on the periphery of business life. It has merged with so many processes, functions and people that it is at the center of daily operations. This is the true meaning of the digital imperative. It is integral to business functions and central to business growth.

What about digital transformation?

 Over the last decade, the digital transformation has led to companies at the forefront adopting a technology-based approach. It has initiated a rethink in modern companies and has significantly driven technological change.

What has changed is not the need for technology. It's the perennial idea of change. According to Nadella, executives don't need to rethink, rediscover or constantly transform their companies. The need for change has been identified - and the first digital cogs should already be in place. Digital transformation should already be in full swing at the enterprise level.  

Why necessarily the digital imperative now?

The question many are asking is: Why now? Why has digitization become so important now (and not, say, ten years ago)?

The shift toward a digital imperative is actually a legacy of the digital transformation movement. Business leaders have made digital investments. CIOs and IT staff have implemented new solutions and trained employees. And the business benefits have been quickly and clearly seen. For the companies that jumped on the digitalization bandwagon ten years ago, the "transformation" has paid off. Studies showthat companies that embraced digital transformation early on were better able to accelerate their digitization efforts, adapt quickly and continue to be successful. Late adopters found that their progress lagged behind those that were better prepared.

"While digital transformation used to be a strategy that enabled companies to stand out and stay ahead of their competitors, today it is a matter of survival. Digitalization has become urgent and necessary. It is now a must," holds Cosima von Kries. 

In which areas is digitization inevitable?

The digital imperative, like digital transformation, covers key areas of the business. Not every company is on the same path, but typically digitalization is critical to:

• Data Storage/Management: Recently, the cloud has emerged as the key to data storage and management, replacing legacy, on-premise systems. Storage in the cloud offers its users more security and flexibility, as it can be scaled quickly and security updates and patches are taken care of.
• Collaboration systems: Collaboration app sales boomed during the pandemic, when remote workers needed new tools to collaborate effectively. Collaboration tools facilitate a remote/hybrid work model while enabling more structured communication in the office.
• Productivity Tools: Technologies that drive productivity are currently at the top of the corporate agenda. These include automation tools, workflow tools and applications that can track productivity throughout the lifecycle of a project. These tools not only provide an increase in employee productivity, but also typically include data profiling that enables better decision making.

The digital imperative: a call to action

Until now, digitization was a decision made by the company's management. The word "transformation" was used to help executives get started with the digitization process. It describes the metamorphosis from outdated methods to new technologies. Now that many digital systems are in place, a new era of digitization is beginning. A company that successfully uses automation tools, collaboration apps, AI-powered technologies, and cloud-based systems will compete - in numerous and diverse ways. 

Digital transformation is no longer an option for business leaders. Nor is digitization something radical, sophisticated, or easily implemented overnight. The digital imperative is first and foremost a call to action. It heralds a new era. And it calls on the laggards of digitization to adapt - and quickly.

Source reference: 

• https://www.linkedin.com/pulse/digital-imperative-every-organization-satya-nadella/?trackingId=3FHeuQsbQSSIXOtFbjepbg%3D%3D
• https://www.forbes.com/sites/forbestechcouncil/2021/04/07/digital-transformation-is-coming-of-age/?sh=6c77e35a74ee

Source: Nintex