Digitalization is quickly becoming one of the most important battlegrounds for business innovation. Operating models are being redrawn for consumers, employees and business partners alike. This puts enormous pressure on CIOs to determine whether digital solutions are ready for the enterprise. In the push for usability, however, ideas like reliability, security, performance and maintainability should not be forgotten. Every business should be exploring how it will operate when location constraints are obliterated. Every CIO should have a clear vision of a world in which every customer, worker and supplier is hyper-productive, hyper-available and hyper-engaged.
Rapid technology developments in connectivity and IoT devices marked the beginning of the digital revolution. Next came the apps renaissance, when intuitive, engaging pieces of software, tailored for industry, began to change our day-to-day lives. The revolution has now reached business. Many organizations today find digital initiatives popping up in every business unit, in every region and in every department. The floodgates have opened.
In this chaotic environment, CIOs face following challenges:
1. Availability of integrated IT systems - Lack of efficient and adequate IT systems for digitalization, as a prerequisite
2. Redesigning organizational structures and ensuring synergies among channels - Updating legacy systems requires new processes and business structures, and collaboration and integration among various business functions wherein just few banks are able to succeed. This is due to the challenge of replacing complex legacy systems without impacting running operations
3. Integrated omni-channel experience - Integration of mobile and online channels with traditional channels, such branch offices or financial advisors and back-end processes for seamless and consistent engagement
4. Budgetary constraints - Active participation in the objectives defined and acceptance at every level of the organization, as well as considerable allocation of funds is one of the major concern
5. Seamless transition to digital platforms - Online platforms are poorly suited to offering a seamless customer experience thus banks are still in the process of transition to up-to-date digital integration platforms
6. Regulatory standards and compliance - Managing regulatory standards and compliance issues among major challenges to digitalization adoption.
7. Organization Silos - Business leaders from various parts of the organization needs to collaborate closely. Organizational silos and traditional, hierarchical structures are often a strong inhibitor to digital transformation
8. Data Capture - Capturing huge customer data from social media, purchase transaction records, call details and GPS signals from mobile phones in organization are difficult to manage
Some of the processes per sector that can be digitized are given below
Opportunities in Digitalization: Customer analytics, Big Data, partnership with companies and service innovation can bring major opportunities in digitalization of processes
Organizations can benefit by Digitalization of Processes through following:
1. Implementing technologies such as smart scanning to reduce manual data entry and repeat inputs in various systems , cutting turnaround times and providing automated notifications to clients for key process junctions. The Nexus of Forces — mobile, social, information and the cloud — will fundamentally change the nature and requirements for decision making.
2. Deploying Customer analytics and Big data for a better customer experience, customized service offerings as well as for risk and security analytics. The role of technology will go much further than automating existing processes to enable the digitalization of the processes, creating value through capturing, analyzing and executing on the available data.
3. Service innovation: integrated mobile payment and shopping apps. Through digitalization, companies will deploy new business models to win over the end consumer and create profitable demand.
4. Digital transformation by partnering with Intermediaries and specialized companies. Digitalization of the processes will reshape the employee-employer relationship and offer a new social-network-based approach to talent management.
5. Service innovation via co-creation and crowd-sourcing. Ensure that any new technology investment goes beyond automating existing processes to support dynamic and strategic analysis, and decision making, to enable the digitalized value chain.