Most critical error typically made during digital transformation is starting it without well developed business model.
Digital transformation is seen by many as the key of success in modern business. Equally, many see it as the primary danger for an established business. Despite exactly opposite views, both these groups are common on one fundamental point. Both blind admiration and aversion miss understanding of what digital transformation is. Admirers falsely think that just one magical business platform will instantly solve their ongoing business problems. Opponents quite reasonably doubt and are afraid of the change.
Understanding of digital transformation does not relate to reading thick books and studying relevant research. Rather, it is a sequence of reasonable steps to get familiar with your business before transforming it. This is well suitable for any business change, not necessarily digital. But for digital transformation it is significantly more important.
Unlike business changes in pre-digital era, where planning was important but still optional, digital transformation is simply impossible without business model in place. Human workers can be given vague tasks in a hope that they will know themselves what to do. Computers will never forgive such careless attitude. Digital platform will do exactly and only things it is told to. If not told to do something, it will do nothing. If given wrong directions, it will do rubbish. There is no magical AI, which will make business for you. There is nobody to blame, except for yourself.
Therefore, digital transformation can be done only with valid business model. Omission of proper business modeling while preparing digital transformation is most fundamental error causing all failures in this field and yielding unjustified concerns on relevance of the transformation as such.
Digital transformation is seen by many as the key of success in modern business. Equally, many see it as the primary danger for an established business. Despite exactly opposite views, both these groups are common on one fundamental point. Both blind admiration and aversion miss understanding of what digital transformation is. Admirers falsely think that just one magical business platform will instantly solve their ongoing business problems. Opponents quite reasonably doubt and are afraid of the change.
Understanding of digital transformation does not relate to reading thick books and studying relevant research. Rather, it is a sequence of reasonable steps to get familiar with your business before transforming it. This is well suitable for any business change, not necessarily digital. But for digital transformation it is significantly more important.
Unlike business changes in pre-digital era, where planning was important but still optional, digital transformation is simply impossible without business model in place. Human workers can be given vague tasks in a hope that they will know themselves what to do. Computers will never forgive such careless attitude. Digital platform will do exactly and only things it is told to. If not told to do something, it will do nothing. If given wrong directions, it will do rubbish. There is no magical AI, which will make business for you. There is nobody to blame, except for yourself.
Therefore, digital transformation can be done only with valid business model. Omission of proper business modeling while preparing digital transformation is most fundamental error causing all failures in this field and yielding unjustified concerns on relevance of the transformation as such.
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