A New Digital Transformation Model For Smart Companies In The Digital Era

Smart Companies In The Digital Era

By Mostafa Sayyadi and Michael J. Provitera 

In the digital economy, executives must develop digital transformation to increase the market value of their companies. This implementation requires the solutions we will indicate in our proposed digital transformation model. These solutions can come from this new digital transformation model. Executives can make their digital transformation more effective with this new model.

Before things became Digital, there was Analog, now digital transformation is a new and exciting journey. Like any journey, organizations must first determine where on the digital divide and where they want to go. Organizations must have a clear vision. Going through the evolution stages of digital transformation is a step-by-step endeavor. Digital maturity is important for each organization. But the important point in digital transformation, like any other transformation, is the vital and influential role of leaders who create a bridge between the past and the future and guide the organization effectively from what was the past to a better future.

To accomplish favorable results, organizations need to be specific about the implementation of their digital transformation plans. Executives need to understand that digital transformation is a multifaceted issue that requires different goals depending on the needs and degree of digital maturity of each organization. [1] [2] [3] It’s time to change our views on digital transformation and realize that digital transformation has different applications for different departments of the organization. In this article, we present a new model that provides leaders with insight to implement digital transformation more effectively in their organizations.

Digital transformation is to become a data-driven organization where all the fundamental decisions of the organization are made based on data analysis. [4] [5] [6] This reduces the occurrence of mistakes, which is an inseparable part of decisions based on intuition, as much as possible. Digital transformation provides system-wide data generation and analysis on a continuous basis. [7] [8] Simply importing and incorporating new technology and new stylish tools will not suffice.

First, executives must know that the heart and soul of any company is the workforce. Therefore, developing their skills is essential and must be continuous. Digital transformation starts with your workforce and then reverberates upward to executives and then back to the lower echelon of the organization. [9] [10] [11] Data is analyzed by your workforce and ultimately decisions are made at the top, only to be recirculated back down the organizational chart. Upgrading and updating technological infrastructures is essential. Chief Information Officers (CIOs) optimize organizational processes with advanced technologies such as artificial intelligence. Then, the Chief Executive Officers (CFOs) utilize the skill of data analysis to enhance the workforce. Our recommendation is that along with the development of analytical and technical skills of the workforce, leaders also provide the conditions for the development of insights related to digital transformation with their workforce so that the employees know more about the process.

Next, executives must be aware that culture is the strongest attribute that leads to digital transformation. [12] [13] [14] [15] A culture of trust should be rife as entire industries are recalibrating technology. A culture of trust allows workers to overcome the fear of being replaced and fired after implementing digital transformation plans even if they fail on the first try. Leaders must emphasize to their workforce that digital transformation is not aimed at firing them the way they feel artificial intelligence replaced people with robots. Thus, our recommendation is to develop a culture of trust by holding meetings with employees to ask them to describe the strengths of each of their roles and then link them to the future digital transformation plans. 

Furthermore, entering the realm of digital transformation opens new doors for businesses to collaborate with larger ecosystems. [16] [17] This leads to attracting new customers using advanced technologies such as artificial intelligence, which provides marketers with a better understanding of customers. Leaders should develop agility and quick response to environmental changes and discard pyramidal structures by developing flexible and flat structures. Pyramid structures prevent organizations to identify mistakes quickly enough to respond to them quickly enough. Flatter, decentralized structures help organizations analyze the extensive information they have obtained from customers in a more effective manner. 

The last step in the model is assessing because people need to deliver extraordinary experiences through service. This loops back to developing employees to learn quickly and turn rapidly that ability into action. The proposed model is indicative of the new digital Transformation.

The New Proposed Model

Developing a Culture of Trust

In summary, executives, first, need to consider the most effective way to develop employees which builds the Human Capital that contributes to core capabilities. Then organizational culture builds trust. Simultaneously, agility provides the Organizational Capital that can identify mistakes quickly and respond to them quickly. Finally, leaders should attempt to improve the skills needed to effectively assess this process. 

In Conclusion

Executives are always assessing if the digital transformation plans have really been effective or not. Always analyzing data to see if there has been a change that can lead to improvement. As executives peruse the digital divide and create digital transformation, new insights will emerge based on your analysis, which will be the basis for future changes. These changes will create a new world that has never been experienced before. Embrace the digital transformation or live in a world of dinosaurs.

About the Authors

Mostafa SayydiMostafa Sayyadi works with senior business leaders to effectively develop innovation in companies and helps companies—from start-ups to the Fortune 100—succeed by improving the effectiveness of their leaders.

Michael J ProviteraMichael J. Provitera is a senior faculty professor of Management and Leadership, in the Andreas School of Business at Barry University, Miami, Florida, USA . He is an author of Level Up Leadership: Engaging Leaders for Success, published by Business Expert Press.


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