Connecting the Dots

[Published August 2016]

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Introduction

Digital transformation is the term used for the powerful disrupter that is helping to change almost every aspect of our lives; how we communicate, how we work and how we live.

The first part of the 21st century has seen significant change.  The world we live in can been characterised by the use of technology, specifically computing and new digital technologies (e.g. communications, artificial intelligence, robotics, and data understanding).  Everyday interactions are actioned differently, often quicker, with more automation, and are more accessible than ever.  New platforms are also allowing the sharing of knowledge and information.  In some areas of life these changes are very apparent, while in others they are "under the surface", enabling the services, the products and the solutions we consume.

Those in developing countries have seen a change in different ways.  The insight and understanding achievable from big-data projects can help communities with health, climate change issues, and agriculture.  The rate of change in developed countries has been rapid and along the way there has been some big-name causalities; e.g. Kodak and Blockbuster, and new names and industries have entered everyday life, e.g. Amazon, Google, social media, and Internet banking.  This change is digitalisation.  We are living in the era of digital transformation.

Digital Transformation

Perhaps a formal definition of digital transformation could be: the use of interconnected computing and other digital technologies that create smart services, to deliver new systems, new ways of working and new ways of living.

Digital Transformation is probably easiest thought of as new uses of technology to solve existing problems and to innovate creating different and new ways of doing things.  From this, it should not be thought of as just automation or computerisation of existing processes and practices, there is an innovation element which reminds us of the disruptive element.

For the most part, today’s customer and workforce are digitally literate and there are few sectors that do not require digital interaction.  There are fewer that are not able to benefit from digital transformation whether in the workplace or wider society.  The customer experience, the ability to adapt (agility and time-to-market) and operational efficiencies are typical goals of a business’s digital strategy.  It is for this reason businesses are setting digital strategies at the top of their thinking.

Digital Products and Services

There are two key attributes that make a digital product and or service and some recognisable examples can help explain:

First, when we bought products or services in the past, we made a choice based on out-of-the-box capabilities.  There was no expectation of improvement during ownership.  Today there’s an expectation that the products we buy and services we subscribe to will gain new features and improve.  Indeed, there is often a need to update as we install a product or service into our lives.  There is an expectation that the product or service will evolve.

The second attribute is the connectedness of services and technologies to achieve a goal.  You want to listen to the radio while preparing dinner.  You say, “Alexa play the radio”.  Three connected services and many technologies are used to achieve this.  Alexa, takes and understands the command, an Internet radio service sources the station, and a connected speaker plays the music.  Three services connected to achieve one goal.

Two attributes of a digital product or service are; the continuously evolving features and capabilities, and the connectedness to other complimentary services and products.

Final Thought

The above consumer experiences help explain the concept and summarise how digital technology and how a digital transformation is changing our lives.  Of course, this is simplified as we have not talked about artificial intelligence (AI) or even data – big enough topics on their own.

Digital technologies may enable the new ways of doing things, but success is not guaranteed.  People need to see or feel a benefit.  For example; online shopping is popular as it has opened up greater choice and price competition, and catch-up TV has freed us from the TV schedule allowing greater freedom of our time.

What is evident is that a connected society and workplace, seeking new innovations and experiences, is part of modern living.

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