Three top pillars of digital transformation are strategy, digitizing the customer experience/relationship, and building a digital organization and talents. These have been gleaned from reports between 2018 and 2019 by the Boston Consulting Group, Harvard Business Review, Forbes, and McKinsey.
Top Pillars of Digital Transformation
Strategy Comes first
- According to the Harvard Business Review, digital transformation does not equate to an organization needing a machine learning strategy; instead, it has to be guided by the top-level business strategy of the enterprise; also, the report noted that the broader strategy has to focus on three areas including innovation, speed, and digitization.
- Forbes' report signified that companies looking to leverage digital transformation would require top executives to set strategic, clear, and mission-driven goals, as well as strategically direct the entire organization to the new processes, operations, and new products to drive the business forward and deliver on customer expectations.
- As per a study by McKinsey, organizations need to set clear workforce strategies that help to determine what digital transformation capabilities and skills they have, and the ones needed to meet current and future business goals.
Digitizing the Customer Relationship/experience
- As per research by the Boston Consulting Group, this pillar of digital transformation creates value by the quantity and quality of customer relationships organizations can deliver and should be more than the volume of service transactions or purchases.
- Forbes' report specific to the customer experience pillar of digital transformation observes that this initiative enhance top organization's ability to map different experiences for customers, which is relevant and inspired by their unique cultures. The report also noted that for enterprise companies to outperform the customer experience through digital transformation, they must only consider customer experience after they are clear on culture experience.
- According to the Harvard Business Review, digital transformation aimed at improving customer satisfaction must proceed with a diagnostic phase, which takes in-depth input from an organization's customers; that is, pertinent to digital transformation, companies must design the customer experience starting from the outside in.
Building Digital Talents and Organization
- According to the Boston Consulting Group, digital transformation would increase the role of AI and machines in the operations of companies and change those of human employees; this situation would create new jobs for people around automated and augmented processes and require organizations to be up to speed by adjusting to build digital talents across the entire company.
- The Harvard Business Review observes this pillar of digital transformation could threaten employees of the security of their jobs consciously and unconsciously; therefore, it is imperative for executives to recognize these fears and get them to understand that digital transformation presents an opportunity for them to upgrade their skills and expertise to suit the future marketplace.
- Forbes' report noted that in digital transformation, the employees of an organization require strong leadership to address the true meaning of digital disruptions, how they would affect business and the market, as well as give employees the requirements to fit into the expected change environment.
To identify top pillars of transformation as understood by Fortune 100 companies within 2018 and 2019, we started by searching through surveys, studies, white papers, and news articles by consulting companies including KPMG, McKinsey, BCG, Forrester, and others. Unfortunately, there was no report or survey from 2018 to 2019 on the top pillars of digital transformation explicit to Fortune 100 or Fortune 500 companies by these institutions in the public domain. Also, there was no info in the public domain specific to what digital transformation meant at financial services or asset management firms. However, from this investigation, we located studies conducted by McKinsey and the Boston Consulting Group, which were based on surveying executives of organizations across different company groups, and provided a list of pillars of transformation.
Next, we examined reports and expert articles on trusted media websites in search of insights into the top pillars of digital transformation for Fortune 100 or 500 companies, as well as how it was different for asset management and financial services firms. Portals we researched included Forbes, Fortune, Harvard Business Review, Inc., WSJ, and others. Again, there was no publicly available publication between 2018 and 2019 highlighting the pillars of digital transformation specific to Fortune 100 or 500 companies, neither was there any info pertinent to financial services or asset management firms within this period. However, this research yielded reports by Forbes and Harvard Business Review listing pillars of digital transformation, which focused on top executives. Hence, due to the lack of any report in the public domain listing the top pillars of digital transformation from 2018 to 2019 by the type of directories required of this request and specific to Fortune 100 or 500 companies, we leveraged the pillars of transformation found from the studies by BCG and McKinsey, as well as those by HBR and Forbes, as a proxy for providing the required information. Thus, we assumed that these directories were also prominent among Fortune 100 and 500 companies.
Please, note that the reports on the pillars of transformation by these directories did not have similar titles for each identified pillar, as all of them had different names and interpretations to each, respectively. Therefore, we examined each report to understand the primary theme of each pillar of digital transformation listed by these directories; then, we grouped the most similar ones identified in all the reports found from the research, based on their titles and descriptions, as a proxy for getting the top three pillars of digital transformation included in this report.