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Digital Transformation: What are we doing wrong?

Digital Transformation: What are we doing wrong?


Angelo Santana - McKesson

During the last decade, we have been watching the organizations designing their strategy to go digital to survive. However, companies are spending millions of euros on IT projects don’t always have a proper payback over their investments. Looking closely in the market, I observed in the last couple of years that some organizations are a little bit lost on this Digital Transformation trend. 


When companies make investments in technology, we can’t choose a solution per solution itself or just because it’s a Hype. The CIO main challenge today should mainly consist of identifying and implementing technologies supporting business on the profit direction. In my opinion, they should focus at least in one of three targets: New sales channels, Customer Experience and Operation Optimization. 


Technology are here to enable the creation of completely new sales channels or supporting the business strategy with the existent ones. Click and Collect strategy in Retail is a classical: You sell a product in your E-commerce platform and you give an option to the customer to go to the retail store and take the product. Why? Because when the customer goes to your store to collect his purchase, they could potentially spend some extra money on different product! 


As a second pillar, the companies should focus are in Customer Experience. The days of Ford without many options to buy a car are gone. Forget about the old fashion products catalogs. Forget about Call Center sales. In the digital world we live today, we are all visual. We want everything easy in our hands. We want Siri and Alexia purchasing for us. We want to identify ourselves with the brand we use. We want to go to a Nespresso store and put our purchase bag into a box and the cash register machine give automatically the costs of our purchases. 


But it’s only on customer side. On the business side, the organizations want to predict the next customer action, the best purchases probabilities. They want to better understand their customers to reinvent themselves and CIO’s must support the companies they work on making sure that as their customers priorities change, as the environment changes, they are able to shift in a way to meet their needs and Technology should be ready to support and leverage the decisions that need to be taken. 


The third and last pillar is the Operational optimization. How can we leverage the technology in our current operation? My answer would be: Through constant innovation. In a logistics company, we should be able not only to receive our orders into the warehouse as the product is sold, but we should also be able to predict and forecast the future orders as they will happen We should be able in the financial to make intelligent payments and automise repetitive process. On HR we should be able to identify the best fit candidate in sea of received CV. All of this could only be done with technology. 


Digital Transformation is a mega trend influencing all industries where the usage of technology to change the way business are made is disrupting the market in a way it was never seen before. Once the organizations are able to focus on these targets, the strategy behind the Digital Transformation can exponentially increase their profits.... And just between us: That's what matters!


(The views expressed are those of Angelo Santana and not of McKesson or any of its affiliates or partners).

Angelo will be joining us at our CIO Europe Event in Paris. To learn about this and other CIO events, visit here

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