The Finance World Magazine| Edition: October 2023

Digital evolution is more than
just a fancy word; it’s a strategic
imperative. In today’s
tech-driven world, organizations that
resist change risk becoming obsolete.
Modernizing your businesses in the
tech era has become a necessity that
comes with numerous advantages.
A tech-driven approach to modifying
your business will significantly
improve operational efficiency. Automation,
artificial intelligence (AI), and
machine learning (ML) technologies
can streamline repetitive tasks, reduce
errors, and allow employees to focus
on more value-added activities. This,
in turn, leads to cost savings and increased
productivity. It also enables
businesses to meet and exceed rising
customer expectations, stay competitive
in a rapidly evolving market, and
make data-driven decisions for more
effective operations.
Before diving into the strategies to
evolve your business, let us decipher
the critical components of digital
evolution.
Digitization:
It is a fundamental step in a business’s
digital journey, involving the
conversion of analogue information
into digital format. This includes converting
paper documents into digital
data simplifying storage, access, and
analysis.
Digitalization:
It involves leveraging digitized data
to enhance business processes
by utilizing digital technologies to
streamline workflows, reduce costs,
and improve customer service. Digitalization
goes beyond just technology;
it involves a significant change in
perspective that demands rethinking
and revamping processes with a digital-first
mindset.
Digital Transformation:
After preparing your mindset for
business modernization, it’s time to
integrate technology into all aspects
of your operations; this stage is known
as digital transformation. At this stage,
your business will evolve digitally to
better fulfil and operate according
to customer needs. This transformation
goes beyond simple process
adjustments, instead concentrating
on the development of innovative,
digital-centric business models that
involve doing things differently and
There is no alternative to digital
transformation. Visionary
companies will carve out new
strategic options for themselves,
those that don’t adapt will fail.
embracing entirely new approaches.
Creating a successful digital transformation
strategy is a multi-step
process that involves careful planning
and execution. Following is a
detailed navigation for modernizing
your business process through small
but powerful actions
Assess and Define Goals:
Start by assessing your company’s
current processes, technologies, and
business models. Identify areas for
improvement, define your goals and
target audience, map customer journeys
and touchpoints, and evaluate
the technology landscape for gaps and
inefficiencies.
Create a Business Modernization
Team: Assemble a team with diverse
skills, including IT experts, data analysts,
and business strategists. This
team will play a crucial role in implementing
and managing your transformation
initiatives.
IT Modernization:
Another significant step for your
company’s digital evolution is its IT
modernization. This will be done in
four steps: First is the alignment of
IT with business strategies within
your company to understand the
current state of its IT infrastructure
and relate it to your future goals. The
next step is to simplify and optimize
your IT environment by implementing
lean processes and automation.
The third step is to modernize your
data and applications by adopting
several services including cloud-based
software-as-a-service (SaaS) operating
models and launching agile DevSecOps
processes. Lastly, it is recommended
to operate a hybrid IT Environment.
Pilot and Scale Start with smallscale
pilot projects to test new technologies
and processes. This allows
you to identify any issues and refine
your approach before scaling up. As
you gain confidence in your digital
evolution efforts, gradually expand
them across the organization.
Train and Educate:
Invest in training and education
for your employees to ensure they
can effectively use new technologies
and adapt to new processes. Change
management is a vital component of
successful digital evolution.
Monitor and Iterate:
Digital evolution is an ongoing
process. Continuously monitor the
performance of your new systems and
processes, gather feedback, and make
iterative improvements. Technology
and market conditions will continue
to change, so adaptability is key.
The digital evolution journey is not
an option; it’s a necessity for businesses
to remain competitive and resilient.
By understanding the Digital Triad,
developing a practical digital transformation
strategy, and embracing
IT modernization, organizations can
unlock their full potential in the digital
age. It’s time to take action, adapt,
and thrive in this ever-evolving digital
landscape.
October 2023 www.thefinanceworld.com 23