A number of secular trends have shaped the rise of digital transformation over the last five years.
Digital transformation is not simply changing technologies.
It involves changing the business models and the way a corporation works. It needs to be sponsored by key people, it requires risk-taking, freedom to innovate and incremental moves rather than Big Bang ones.
Digital adoption happens at different speeds.
The shift to a more advanced digital adoption does not affect all industries at the same time. Some industries (e.g., banking, media) were disrupted at a faster pace than others.
Businesses should have willingness to perform digital transformation.
Managers need to understand the underlying business model and willingness to perform digital transformation so that the right enablers can orchestrate the transformation.
Covid-19 has amplified the speed of digital adoption globally.
A major limitation in quicker adoption of technology is changing people.
Covid-19 has amplified the speed of digital adoption globally. Covid-19 showed how quickly people can adapt to dramatic changes in the way we do work.
Change is easier with a sponsor and led by example.
In adopting digitalization across any corporation, sponsors are typically the key to success. Coupled with grassroot movements, this boosts coordination and horizontal adoption which are a winning pattern.
Digital technology can help to boost sustainability outcomes in the era of ESG.
Path to net zero carbon is still unknown, but technology will play a key role.
Many companies have pledged their commitment towards becoming net zero carbon by 2030, but most do not know how to get there. Technological progress in energy storage and carbon traceability is key to enable us to achieve this target.
Technological change needs to balance labour disruption and reskilling.
A key challenge in committing to ESG agenda is the tension of digital transformation where it is a double-edged sword that affects productivity supplement and labour displacement.