Keys to Digital Transformation – People, Mindset & Culture

Sharad Chandra Sharma

Abstract


Abstract

Slowly and steadily, digital technology is leveling the playing field for businesses of every size to disrupt their industry. In any given era, technology has always facilitated disruption in one industry or the other and with advent of digital technologies, this disruption has been faster and more nimble than ever. Technology is not only playing a significant role in bringing industry wide changes in business models but also in creation of new products and services. Although technology seems to be the main stay of digital transformation but it alone is not the only one. New regulatory environment, higher consumer expectation, lower appetite for risk of organizations and evolution of FinTech sector have also fueled the digital transformation of businesses across sectors and the banking industry is not untouched by these changes. The banking industry in itself has undergone a number of transformations over the year. In earlier days banks and other businesses around the world used outsourcing for their non-core business functions. Banking leaders, focused on reducing costs, had started using managed services for “run the bank” processes, but most organizations still remain dependent on their outdated, complex and costly systems. Recent challenges and evolving technology caused the banking industry to rethink the decision to hold onto such legacy systems, processes and business models. The banks took the next step by embracing outsourcing as a strategic extension of the business for managing core processes and “change the bank” projects and business leaders started considering outsourcing an integral function of their operation rather than being strictly a cost-cutting initiative. With the opportunity provided by disruptive technologies, they started to integrate digital transformation initiatives with “Change the Bank” initiative to reach the goal of optimized business performance. In order to effectively embrace the digital transformation, organizations needs to understand the basic elements of digital transformation that includes the right digital mindset, rethinking of business, connectivity, developing digital capabilities and culture. Only by understanding these basic elements and by creating an impactful mix of these elements, organizations can truly capture the values generated by digital transformation. Although technology is the back bone of digital world but for any digital transformation to be a success story, the most critical factor is people. Organizations must articulate and implement people vision along with creating right structure and incentives for people in the organization so that they do not perceive digital transformation as threat but rather participate in it for their personal, professional and organizational growth. The latitude of these changes clearly demonstrates that digitization is a not an easy change and could evolve into a complicated journey but if business leaders manage to overcome multiple challenges posed by advances in digital world, aided by focus on people, mindset and digital culture, they can place their organization to compete effectively and capture an evolving growth path for long term.


References


• “Driving the digital transformation – The EBF blueprint for digital banking and policy change” (http://www.ebfdigitalbanking.eu/ )

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• “The next phase of outsourcing: change the bank with digital transformation” , 13 May 2015 (http://www.bankingtech.com/296122/the-next-phase-of-outsourcing-change-the-bank-with-digital-transformation/)

• "It’s 2014 – is your company ready for digital transformation?" by Auke Douwe Veenstray, December 30, 2013 (http://banknxt.com/23097/2014-company-ready-digital-transformation/)

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ISSN : 2251-1563