Digital transformation involves more than technology
According to the author of the best-selling book, 'The Technology Fallacy', most companies are getting digital transformation wrong, assuming that the correct response to digital disruption must involve the deployment of modern technologies. In reality, effective digital transformation may not involve new technology at all.
According to a global survey of managers and executives conducted by MIT Sloan Management Review and Deloitte, close to 90% of executives anticipated that their industries would be disrupted by digital trends to a great or moderate extent, yet only 44% said their organizations were adequately preparing for the disruptions to come. This is strongly aligned with research done by the Digital Banking Report, where only 12% of banking organizations considered themselves digital transformation ‘leaders’ and where less than 40% of organizations considered themselves prepared for consumer expectations or competitive threats.
The reason why most banks and credit unions fall short of what is needed to transform their organization is because becoming a ‘digital bank’ is tough. Not only must legacy systems be upgraded, but business structure, operations, people, culture and leadership must all be in sync and aligned. This leaves many organizations taking on digital transformation ‘projects’ that are limited in scope as opposed to trying to transform the entire organization.
Making matters worse, research discussed in the book, ‘The Technology Fallacy: How People Are the Real Key to Digital Transformation‘ reveals that the human and organizational aspects of digital transformation are often more important than the technological ones. Instead, the book discusses how digital transformation involves:
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