Defining digital transformation: Embrace long-term evolution

AS OUR world evolves at breakneck speed, the requirements for succeeding in the digital-first era are constantly changing. Research has shown that the global pandemic has accelerated the digitalisation of products and services in Asia-Pacific by nearly a decade. In Singapore, 72 per cent of business leaders have said that their digital business models have picked up speed during the Covid-19 period. With such rapid and persistent change, businesses can find themselves losing sight of the strategy and rationale behind why they embarked on a digital transformation journey in the first place.

After all, digital transformation is not achieved overnight. In fact, it is not something that is truly "achieved" at all. Just because digital transformation does not have a tangible "end point", it does not mean it cannot be a fulfilling and ongoing journey - and one that is critical to undertake.

That is why leading businesses do not view digital transformation as a cliff-edge moment, but rather a continuous evolution that their entire organisational culture revolves around. As hybrid modes of work become the norm in Singapore, digital transformation continues to be imperative for long-term business growth and sustainability. The Singapore government recognises this and has implemented a series of measures to aid businesses in their digital transformation journey.

Technology is only one part of the equation

When it comes to the "what" of digital transformation - that is, what areas of the business are being digitally transformed - there is no denying technology serves as the bedrock of the entire operation, and often as the catalyst for broader change. However, as with any business venture, technology only forms one piece of the puzzle. The how, why, and who of digital transformation are equally important. Why is that technology implemented, how is it being applied, and who is using it?

These considerations form the 4 key pillars of any successful digital transformation: strategy, technology, execution and education - and they all carry significant weight. Contrary to popular belief, the primary barriers to digital transformation are largely non-technical. These blockers revolve around people, structure, and strategy. In fact, according to research, the biggest hurdle hindering overall digitalisation is actually organisational silos.

It is for these reasons that businesses must escape the notion that technology is a silver bullet to all their challenges. Rather, technology is an enabler - after all, one supporting pillar is not enough to hold up a roof. Conversely, technology is meaningless if it does not align to an organisation's core strategy, or if the people using it do not possess the proper skills to execute it effectively or use it to its maximum capability.

When we surveyed marketing and technology leaders for the 2021 Digital Trends Report, respondents at companies that have built strong analytics functions which provide significant insight into new journeys and marketing attribution are more than twice as likely to say their customers are positive about their digital experience than their peers with lower levels of insight (71 versus 31 per cent).

Leadership's role in maintaining a strategic outlook

Strategy can often be the biggest pitfall for businesses, especially when embarking on a long-term digital transformation journey. As with digital transformation itself, success is not achieved overnight, and it can often take a long time to identify returns on investment. Without those tangible "wins" to encourage people in the short term, it is understandable that a team's motivation can wane, and why the wider business potentially loses sight of the bigger picture of why the technology was implemented in the first place.

This is where leadership plays a critical role. It is their job to prevent the business from straying too far from the original digital transformation path, to keep beating the drum of the underlying strategy, and to consistently communicate relevant key performance indicators and metrics.

And, while it is the responsibility of all senior leadership to ensure their teams are remaining aligned to their business's long-term strategic vision, the overall success of digital transformation is increasingly benefiting from a single advocate or sponsor to carry the torch and keep the business motivated and focused throughout the journey. That is exactly why job titles revolving around digital transformation are becoming more commonplace among innovative and forward-thinking businesses.

Education must also constantly evolve

Successful digital transformation relies on all 4 pillars - strategy, technology, execution and education - evolving constantly in tandem.

According to the Digital Readiness Blueprint, digital literacy is the foundation of Singapore's digital transformation towards a Smart Nation. However, education is often left for later, with little or no budget commitment. This leaves companies vulnerable to failure or limited returns on investment. Why go so far, only to trip and fall during the last mile? As Singapore embarks on Industry 4.0, continuous upskilling and reskilling of digital competencies are imperative for businesses to remain competitive in digitally enhanced environments.

Successful digital education cannot be achieved with an annual workshop - it must be a daily exercise that is embedded into the core of the business, alongside regular opportunities for more formalised learning to consistently expand upon the existing foundation of skills and knowledge. Employees should be encouraged within a culture of continuous learning to test and learn, to put forward suggestions, and to share success and failure in equal measure.

These insights should then form new and creative ideas, and leadership must continue to encourage this process by actively seeking ways to embed employee insights into new ways of working, or openly letting them influence campaigns or projects.

Peter Drucker famously said, "culture eats strategy for breakfast". Businesses need to constantly nurture a culture of learning - both from the perspective of digital capabilities, but also from emerging market trends and conversations with customers - which will ultimately drive long-term, strategic digital transformation success.

• The writer is managing director, South-east Asia & Korea, at Adobe.