The technological analysis firm Penteo and the IESE Business School have published an interesting study on the keys to digital transformation in Spain. They have analyzed the state of the transformation processes in companies, as well as the main current challenges and opportunities. A joint study has been carried out in which 207 managers have participated. One of those selected was Félix Casado, CEO of Virtual Cable. They considered it essential to have the vision of this pioneering company in the development of virtualization software in Spain.
Casado has offered his vision of digital transformation, has valued the success achieved by organizations to date, the adoption of technological capabilities and the impact on the business and leadership model. Along with the rest of the executives consulted, he has helped answer the question: What are the keys to technological adoption and how do they contribute positively to the digital transformation of companies?
After conducting the study, Penteo and the IESE Business School have observed that the digital transformation has multiple meanings and includes different aspects in most companies. The most successful associate it with greater business agility in the face of an ever-changing and unpredictable market, and strive to extend the innovative culture throughout the company, always sustainably. Likewise, those organizations that use the data beyond process automation are the ones that obtain the best results.
Regarding the technological capabilities that differentiate the most successful companies in digital transformation processes, three have been mainly identified:
Invest in expanding and professionalizing analytical capabilities, especially advanced ones, including predictive analytics (AI).
Have open architectures that allow the company to connect with third parties (API).
Continue supporting with digital tools the main processes of the value chain, with special emphasis on those in contact with its market, its customers and those who support the supply chain.
Regarding the classification of the technologies used in the digital transformation processes of companies, two different types have been identified: those that are no longer differentiating and those that have more potential to generate competitiveness.
Cloud computing is among the first, as it has now become a commodity. If the company does not have enough development, it can even be a drag on its digital transformation. Among the latter, social networks, automation platforms, architectures oriented to connectivity with third parties and, in a very special way, artificial intelligence applied to advanced information analytics stand out. All these technologies should have a place within the digital strategy of companies.
Among the conclusions drawn from the study, it has been observed that although the data are considered strategic, companies still do not have the analytical capabilities necessary to extract the value from them.
Regarding the impact on business models, the study concludes that the development of new technologies has brought new competitors. Now startups and traditional companies operate in the same sector. The migration of traditional companies to adjacent sectors is complex and is currently facing more barriers.
Part of the success in business model innovation reverts to an improvement in the cost of serving customers. But most companies still do not have the capacity to generate new sources of income derived from digital transformation.
Finally, analysts conclude that despite the fact that the CIOs play an important role in the digital transformation process of companies, leadership is being assumed by the CEO.
It should be noted that this study was carried out before the health crisis by Covid-19. The situation generated by the pandemic has shown that it is necessary to prioritize some objectives of digital transformation. Of special importance now are the strategies aimed at greater agility and greater capacity for rapid decision-making thanks to data analytics. This will allow organizations to react more efficiently to the new needs of customers, suppliers and employees. This agility is essential to make the most of new opportunities, niche markets, new demands... created by the reality shift we’re living.
For more information, see the full study at this link.