The journey towards becoming a true digital enterprise

If you want to push digital transformation successfully, you need a holistic view of multiple, interconnected aspects. “And when all blocks are in place, then a company can call itself a true digital enterprise,” says Gerard Wijers, partner at Anderson MacGyver. A discussion on what this means and what is needed.

Digital enterprises are those that proactively integrate technology into their core strategies in order to achieve superior customer experiences, better operational efficiency, and greater innovation. Companies position themselves to become digital enterprises in order to stay ahead in today’s competitive landscape.

It also entails leveraging data, artificial intelligence, and automation, while fostering a culture of continuous improvement and agility. Businesses that fail to adopt a forward-thinking approach, on the other hand, risk falling behind by merely reacting to digital trends rather than proactively staying ahead of the curve.

“My recommendation is to start thinking like a digital enterprise: Holistically and end-to-end. Based on governance and personal leadership, create business strategies with explicit digital ambitions, leveraging technology and data to differentiate yourself from the competition,” notes Wijers.

“Build strategies that are scalable. Meanwhile, keep the overall IT landscape as simple and fit for purpose as possible. Place ownership and responsibility within multidisciplinary teams. Ensure tech and data capabilities within management teams and the board.”

Obviously, this type of transformation can be a huge challenge for organizations. Some of the main hurdles include high costs, siloed leadership, difficulty in attracting and retaining talent, poor data quality, and complex legacy IT systems.

When it comes to concrete steps that a company can make, Wijers lays out five key building blocks at the core of building a digital enterprise:

Customer experience

First off, companies that want to beat the competition need to deliver exceptional customer service that exceeds that of industry peers. “It is really that simple.”

“Organizations often start by turning their existing products and solutions into digital services. Deployment of technology and data causes people to start thinking about issues such as long-term customer value and the introduction of, for example, subscription models and other forms of value creation,” adds Wijers.

Operational backbone

The operational backbone refers to the base foundations of how a company works – but it also extends beyond internal operations to include integration with partners.

Areas to focus on include automation of key processes (which can lead to a major boost in efficiency) and modernizing outdated IT systems to enhance chain efficiency and data exchange. “For many organizations, the operational backbone encompasses everything from ERP implementations to full automation of production environments. This domain accounts for about 40% of IT investments, reflecting its importance,” says Wijers.

Digital infrastructure

“Just as roads and utilities are vital in the physical world, a robust digital infrastructure enables the seamless operation of modern enterprises,” notes Wijers.

Companies need to update and modernize their infrastructure – not just hardware, but also cloud infrastructure, cybersecurity tools, and connectivity infrastructure like networks and APIs. Digitalization has changed the way infrastructure works. In the digital age, everything is connected.

Shared data

“Data is an asset because it’s crucial for delivering exceptional customer experiences, optimizing processes, and enabling intelligent, data-driven decisions. The need for clear data about customers, products, prices, and employees is growing exponentially,” notes Wijers.

This data is of strategic importance because it can be fed into algorithms and AI models. Harnessing insights that come out of such analysis can boost efficiency and decision-making.

Digital smartness

Automation, generative AI, advanced algorithms – successful companies will be smart enough to harness all of the sophisticated tools at their disposal. “AI and analytics are transforming both customer experiences and operational efficiency,” says Wijers.

“It enhances customer interactions through segmentation, personalization, and next-best-action models. Also, it strengthens the operational backbone of organizations with smart processing and automated decision-making.”

Connecting the dots for a true digital enterprise

In the end, by addressing these five areas, companies can change course towards becoming true digital enterprises. “These types of companies are forward-thinking and embed digital technology at the core of their business strategies.”

“The digital enterprise proactively seeks out and implements digital technology to drive innovation, efficiency, and competitive advantage. This type of company is characterized by a culture of continuous improvement and agility, making it well-equipped to anticipate market changes and capitalize on emerging opportunities.”