Technologies hardly imaginable decades ago are already upon us today. How these new technologies are going to transform existing businesses? What kind of new business models, processes and products will they require? Ultimately, what new competences and skills executives and workers need to keep their organizations and themselves in the running?
Digital Transformation is a term associated with almost anything in the interconnected world of new technologies dominated by digital giants (Amazon, Alphabet, Facebook, Microsoft) via comprehensive platforms, including social media. Therefore, social scientists still struggle to come up with an acceptable and inclusive definition of what DT really is. With various interpretations available, it is important to remain open to new ideas.
Digital transformation is a process of changing the traditional or of starting up a new business in creative ways, by using social, mobile and other emerging digital technologies. It requires a change in leadership, encouragement of an innovative and entrepreneurial approach to business, and intensive use of available technology.
Business as usual will certainly not be good enough for dealing with digital transformation. Organizations will need to transform, while this transformation will need to incorporate a number of equally important elements. Business strategies must encompass transformation from end to end in the organization, and will require much more than just implementation of new technology.
New Enterprise Systems
A paradigm shift and transformation in communication technologies has provoked new ideas about the change in corporate structures. Today we live in a world of instant communication and feedback, reversed corpnet supply chains, and prompt market reaction time. Traditional hierarchies are becoming wirearchies, in which the emphasis is no longer on hierarchy and top-down control, but on encouraging and channeling employee energy. At the same time, organizations are radically changing their structures to facilitate cross-functional teams and self-organized matrix groups of collaborators who work with distributed responsibilities.
This unique combination of economic and technological forces has changed the world of business and disrupted entire industries and society. Taking enterprise systems to the next level, is not just about adding Cloud, Social and Mobile collaboration technology to existing legacy systems, but about transforming the enterprise systems, while at the same time changing the organization itself from bottom upwards. Implications of digital disruption go far beyond the pure economic and manufacturing ramifications. Much wider in scope, they refer to a systemic transformation of the foundations of our civilization – civil society, governance structures and our identity. We call this changes the Fourth Industrial Revolution.
e-Leadership in the Context of Digital Transformation
We believe that e-Leadership is the key ingredient of a business strategy to foster competitiveness and innovation potential and especially through the use of new digital technologies.
e-Leadership skills are the skills required to initiate and achieve digital innovation & transformation. For each individual, they include and can be described as:
- Strategic Leadership: new type of soft skills, lead inter‐disciplinary staff, and influence stakeholders across boundaries (functional, geographic),
- Business Savvy: innovate business and operating models, delivering value to organizations,
- Digital Savvy: envision and drive change for business performance, using digital technology trends as innovation opportunities.