Over the last year colleagues have written blog posts on digital transformation and the new technologies within the telecommunications industry that are accompanying this phenomenon. However, I would like to take a step back and look at the digital transformation from a more business perspective.
Some have classified the digital transformation as the Fourth Industrial Revolution, where the markets, both clients and suppliers, are experiencing huge changes with the introduction of digital technology.
These changes are offering companies huge opportunities to transform and obtain unprecedented growths. This can be seen in large companies as well as small companies that over a very small period of time expand to incredible limits.
There are those who are questioning whether companies and organizations who have not yet started their digital transformation, whether they will be able to maintain their position within this Fourth Industrial Revolution. This claim would seem to be rather drastic, however it is true that although it is not too late, it is advisable that all companies and organizations start to take on their digital transformation sooner rather than later.
So what are the main points that are seen as vital, apart from obviously the technological change, that companies and organizations need to take on board? To mention all would take some time and a long explanation, but perhaps a few important points would be the following ones.
Companies need to identify and develop their digital business models that they believe are the models that best fit their company. Once this is done the operations company model has to be totally transformed to the new digital environment. Another point is, be able to extract as much data as possible from your business to analyze it, to then take quick decisions related to your business.
Increase expenditure on security. Some even say that security expenditure should increase tenfold on what is the current average. Wellâ€¦ this needs little more explanation. If you just look into the market, with the drastic effects that the ransomware attacks such as WannaCry have had on so many companies and organizations, you will understand why they talk of such a large expenditure on security.
Building a digital workforce is vital. By both training the current workers and incorporating new digitally orientated millennial workers into the company.
So now after these main points, going back to the issue that I mentioned at the beginning. Whether it is too late to start the digital transformation and moreover, how are more traditional incumbent companies going to survive this Fourth Industrial Revolution. It is quite clear that some new startups are very well positioned if they have started as digitally orientated companies. However, the already existing incumbent companies have many assets that cannot be considered as minor; brand, sales networks, distribution, experience, etc. Hence both types of companies have their assets and if they play them correctly, they will be able to thrive through this experience.
As has been explained in this post, digital transformation is about transforming a company digitally in all aspects and departments, from the Board room to Operations, to Marketing, to Human Resources, etc. It will definitely be those companies that see technology, not as a cost but as a means of creating corporate wealth and resources, who will reach furthest within this Fourth Industrial Revolution.
At Teldat, we are convinced that this is going to be the winning stake and that is why we have invested so heavily in the new SD-WAN concept, which digitally transforms the way in which a corporation or organization built on a branch network structure will develop in the very near future.