Is digital transformation and upgrading important to change processes, or is it more important to change organizations?
Digital economy has become a new driving force for China's economic growth. Digital transformation and upgrading have deeply affected all walks of life. New technologies such as big data, 5G, AI artificial intelligence, blockchain, Web3.0 have injected new vitality into various industries. ZF's work report has mentioned "creating new advantages in the digital economy" many times and put it into practical support policy actions to guide enterprises to realize that digital transformation and upgrading has become a necessary path for enterprises to achieve sustainable operations. Digitalization and related technologies provide opportunities for enterprises to create value, reorganize organizational structures and business processes, and reshape supply chain relationships.
Digital transformation and upgrading theoretically means using digital technology to reconstruct the organization and business, which is to digitally recreate the product itself, service processes, organizational structure, channel and supply chain integration, business models, etc.
Nowadays, people are still struggling with why companies must do digital transformation ?
Enterprises are not transforming for the sake of transformation, but are undergoing digital transformation and upgrading to achieve organizational goals.
uses digital technology to solve the pain points of corporate business and management, achieve reducing costs and increasing benefits, providing customers with value to customers with a better experience, and innovating business models. These three points are the most basic goals of enterprise digital transformation.
The stage of enterprise digital transformation, should generally start from informatization and then digital. Every company has done some information projects to a greater or lesser extent, opening up the internal system of the company, and then making and smoothing the information on OA (every office), ERP (enterprise resource plan), CRM ( customer management system ), and then doing further digital transformation.
Digital transformation is fundamentally a human transformation, an upgrade and transformation of human thoughts!
Digital transformation is fundamentally an organizational change, not a mere tool-based application of information technology. Digital transformation is a process of using digital technology to reconstruct business and solve pain points.
Enterprises must also have endogenous and self-driven innovation to completely promote digital transformation. Entrepreneurs and managers need to achieve transformation first before they can achieve top-down innovation and digital transformation. It should be emphasized that digital transformation, especially in manufacturing and service industries, mostly propose solutions to their own personalized problems. It must have endogenous transformation motivation and all employees need to have a deep understanding of digital transformation, internalize the concept of digital transformation in their hearts, and turn it into conscious actions.
The digital transformation of an organization requires the enterprise to have a new vision, new strategies and business blueprint, new structure (organization), new people (new positions, new technologies), new thinking and new culture. Enterprises will profoundly reconstruct business models, work processes and interpersonal relationships when transforming from informatization to digitalization. Based on the platform formed by digitalization, reconstructing business processes with digital twins will subvert the original production methods and human resource factor structure, which will inevitably have a huge impact on the traditional organizational structure. Such profound changes must be based on the leap of learning and cognition.
According to the development trend, the digital transformation of small and medium-sized enterprises is more realistically completed by business personnel on a unified platform using low-code construction. They are the main force in future digital transformation.
This requires even more human transformation.
Is digital transformation and upgrading important to change the process, or is it more important to change the organization?
The answer is obvious: three points rely on technology, and seven points rely on organization.
Through such a digital process, companies can analyze their leadership and development potential, and provide a basis for judgment for people to make full use of their talents and their use. Therefore, the processes in human resource management - recruitment, retention, selection and education can be driven by data. The classic system of traditional human resources in the past, the management process of reporting and union were transformed into new data-driven methods and new thinking.
Fundamentally, digital transformation is a transformation of organizational characteristics that enterprises must make in order to adapt to the digital age. It is a strategic action based on the full application of various digital technologies to respond to new challenges and opportunities. Digital transformation is not only a transformation of enterprise positioning and value creation systems, but also a process of reconstructing the organization and its operating systems, including corporate strategy, organizational structure, human resources, business processes and products. Through digital transformation, enterprises become digital enterprises driven by data intelligence.
The digital era has arrived, and digitalization and related technologies provide opportunities for enterprises to create value, reorganize organizational structures and business processes, and reshape supply chain relationships. However, digital transformation cannot be achieved overnight. The digital transformation of Chinese companies is already on the road, and the road is long and the journey is coming.
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