ICT 304 Enterprise System and Architecuture

Introduction

Digital transformation in the systems of the enterprise is becoming increasingly important for the purpose of research and the practice. Transforming the business poses different opportunities such as creation of the novel for the models of business but contrary, it also constituted many challenges like changing the structure of the organization. Information systems (IS) can handle such transformations so it can be assumed that it carries a great potential for the digitalisation as well (Goerzig and Bauernhansl, 2018). This report will discuss the digital transformation and its impact on the enterprise information system along with the emerging technologies of the digital transformation. The report will also emphasise on the importance of the digital transformation for the decision making in the enterprise with the real-life examples and what happens if the digital transformation is not adopted by the enterprises. Further it will discuss that in what ways do this support the success of the business and lastly it will discuss the ways of identifying the digital transformation tools for an appropriate enterprise system.

Emerging digital transformation technologies

Digital transformation is known to be the integration of the digital technologies for all the areas of the business which fundamentally focuses on changing the ways of how the enterprises operate and deliver the value to the customers (van Gils and Proper, 2018). Digital transformation is also considered as a cultural change that wants the origanisations and the enterprises to challenge the experiment, status quo and becomes comfortable with the failure. The today’s digital transformation is defined as using the digital technologies to alter the process in becoming more effective and efficient (Li, 2020). The idea for the enterprises is not using the technologies just to replicate the already existing services in the digital form but using those technologies to transform the existing services into some innovative and into significantly better.

 In the current trend, the top four technologies are impacting today’s digital transformation which are cloud computing which is the older concept but is known to be a valuable tool for most of the organisations in every industry with data which points out to the cost benefits, competitive advantages and the business efficiencies (Andriole, 2020). Secondly, artificial intelligence which is again a popular application for many of the sectors of businesses because the focus of this application is on making the machines which can solve the problem same as the humans can. Thirdly, the internet off things which is accomplishing more than just simply establishment of connections between the systems and the devices. It tends to open up the opportunities for creation of the previously unattainable services and the products (Li, 2020). Lastly, big data which helps the businesses in taking information from different sources and further helps in analysing it to drive the smart and effective decisions for the enterprise (Andriole, 2020).

Importance of digital transformation

As transformative and new technologies are rapidly entering into the workplace enabling the businesses to adopt innovation and thrive in a rapidly increasing digital world. So, digital transformation is known to be the key in responding to the disruptions of the business ecosystems and the work. Researchers have found that in the new world, technology is left as not a choice but now is a fundamental strategy for the business that should and must be interwoven in the organizations. It is important in making the decisions because when the organizations go digital, they can track the metrics and can analyse the data that is captured in the process of digital marketing (Hoberg, Krcmar and Welz, 2017). Using those data driven insights can further help in understanding the customers better and also helps in rethinking the strategies for businesses which ultimately assists with better decision making resulting in various ways to a higher ROI.

Not adopting to the digital transformation can lead to many impacts especially in the success of the business. The best examples could be Nokia and Kodak who were not able to adopt digital transformation on time because of Nokia sticking to its windows operating system and not competing with brands like iPhone. Similar, Kodak did not realise that its strategy for sustaining in the market was depriving and was not aware about the technology of digital cameras which could be disruptive business for the company and did not invested in the transformation of adopting digital cameras (Janke and Mißler-Behr, 2015). Not being able to adopt the digital transformation negatively impacted the revenues of the companies. Not only this, but not adopting to the digital transformation can lead to less productivity, decreased agility, data collection is not enhanced and many more (Andriole, 2020).

How the digital transformation support business success

Digital transformation is known to be the part of every aware organisation’s vision and mission to be successful in 21st century. It is not just limited to adopting the latest technologies to make the operations easy but it helps in producing and delivering along with enabling the customer success at a much faster rate (Sebastian, et al., 2020). Digital transformation supports the success of an enterprise in the following manner:

1. Keeping everyone in a big screen: Firstly, managing the teams which are widely spread becomes a challenging task for the project managers in an enterprise. Traditional systems of the technology do not allow single screen visibility of what is happening around. So, the digital transformation helps in keeping all the team associates on a same page which helps in making things interactively (Osmundsen, Iden and Bygstad, 2018). As a result, every member of the team remains aware about what is going on.
2. Avails strategic and efficient communication: Secondly, the modern digital technology is helping in restructuring the cross-team communication of the project management in a big and great way which is not possible traditional tools like emails. These tools of traditional technology are known to pose difficulty for the teams when it comes to the collaboration. As communication play as a key role in the success of any enterprise so it helps in leading to greater success (Sebastian, et al., 2020).
3. Guarantees better performance and ROI: Thirdly, digital tools are adding more technology which is analytical to make data-driven decisions and are trending to meet the current demands in big and complex infrastructures (Osmundsen, Iden and Bygstad, 2018). This can support the success of the business because now the management and the stakeholders can have an insight to the business impact and on the ROI.

The best example that can suit here is the amazon. Amazon is known to be the biggest e-commerce business at the moment. They are using big data for improving their customer experience by dynamic pricing and product recommendations which serve as success supporter for them (Sebastian, et al., 2020). When company like amazon provides such big options to the customers, they become overwhelmed and effectively becomes the data-rich with lot of options but insight-poor with less idea of the best decision that would be suitable so amazon uses big data which is gathered from the customers while building and tuning the recommendation engine. It is evident from big data that the more amazon knows about the customers, the better they can predict about the choices of the customers.

Identification of digital transformation tools

Digital transformation has been frightening some of the entrepreneurs and the managers in today’s world and they tend to imagine that the implementation of the digital transformation is complex but the enterprise just needs to research, create a benchmark and need to analyse the characteristics of the enterprise and set the priorities (Tekic and Koroteev, 2019).

The best tools for the digital transformation can be identified by the enterprises by following the three pillars. As the first step for them is to understand the impact of digital transformation on the key areas and effects on the business. The three pillar that can stand out for the businesses are:

1. Customer experience digital transformation: An example is the customer who asks the seller for the discounts within the physical store for certain merchandise because he knows and has seen on internet about the competing seller who sells the same at the cheaper price (Tekic and Koroteev, 2019).
2. Operational process transformation: The process modelling of the organisation should be always able to deliver the increasing value to the customer at every stage of the chain which can only be achieved with the better flow of communication, information, teamwork and collaboration which are also the elements in which digital transformation can help in assisting in an assertive and very practical way (Sousa and Rocha, 2019).
3. Business mode transformation: the above two pillars with its sum can be helpful for the businesses to be attentive not only in the way in which the business produces and deliver in the market to its customers but also to what the competition can hamper in that sense. So, the company may generate even the disruptive innovation but along with that, it must also remain aware about the steps of the competitors and should defend itself from the competitor’s threats (Sousa and Rocha, 2019).

By following the above three pillars, any enterprise can identify its tool for the digital transformation to be successful in its business and in the marketplace.

Conclusion

From the above report, it can be concluded that digital transformation in the systems of enterprise is an important aspect because it helps the enterprises in enabling better communication and collaboration between the organizations. It also helps in innovating the employees and their productivity and gives more accurate insights from the data of the enterprise which ultimately helps the business to grow. Further, it was observed that there are the top four technologies currently impacting today’s digital transformation which are cloud computing, artificial intelligence, IOT and big data. These tools are important for the enterprise because they are the key in responding to the disruptions of the business ecosystems and the work. It also supports the success of the business by keeping everyone in a big screen, availing efficient communication and by guaranteeing better performance and ROI. The last section of the report discussed the identification of best tools which can be done by following the three main pillars like customer experience digital transformation, operational process transformation, and business mode transformation which will help the business becoming successful in the marketplace.

Referencing

Andriole, S.J., 2020. Innovation, Emerging Technology, and Digital Transformation. IT Professional, 22(4), pp.69-72.

Andriole, S.J., 2020. The hard truth about soft digital transformation. IT Professional, 22(5), pp.13-16.

Goerzig, D. and Bauernhansl, T., 2018. Enterprise architectures for the digital transformation in small and medium-sized enterprises. Procedia Cirp, 67, pp.540-545.

Hoberg, P., Krcmar, H. and Welz, B., 2017. Skills for digital transformation. IDT survey.

Janke, A. and Mißler-Behr, M., 2015. Identifying the Disruptive Potential of the Sustainable Innovation E-Mobility.

Li, F., 2020. Leading digital transformation: three emerging approaches for managing the transition. International Journal of Operations & Production Management.

Osmundsen, K., Iden, J. and Bygstad, B., 2018, September. Digital Transformation: Drivers, Success Factors, and Implications. In MCIS (p. 37).

Sebastian, I.M., Ross, J.W., Beath, C., Mocker, M., Moloney, K.G. and Fonstad, N.O., 2020. How big old companies navigate digital transformation. In Strategic Information Management (pp. 133-150). Routledge.

Sousa, M.J. and Rocha, Á., 2019. Digital learning: Developing skills for digital transformation of organizations. Future Generation Computer Systems, 91, pp.327-334.

Tekic, Z. and Koroteev, D., 2019. From disruptively digital to proudly analog: A holistic typology of digital transformation strategies. Business Horizons, 62(6), pp.683-693.

van Gils, B. and Proper, H.A., 2018, October. Enterprise modelling in the age of digital transformation. In IFIP Working Conference on The Practice of Enterprise Modeling (pp. 257-273). Springer, Cham.

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