The operational & financial benefits of digital transformation | Arin Dubey | Barclays

 

Q.1)  What are the business requirements which are making it essential for the businesses to go for digital transformation?

Most of the manufacturing organizations in which is having a huge legacy in their operations for example hundred years/ hundred fifty years, they tends to have multiple technology in place and at a diversified location across the globe.

First thing, standardization of all those legacy application is the key to start with the digital activity.

What is important right now is to understand what are the key focus areas of the business.We have to take selective information. We don’t need to overpower our leaders with too many information. How to bring a selective information, make it meaningful and giving back to our organization, that is where digital transformation plays a big role.

If I say we have hundreds of manufacturing machines where if we could bring in a predictive maintenance to those machines and so that before the missions get failed or there is an operational issues to our missions, we predictably analyze this mission is going to go for a maintenance and make it fit so that production does not hamper.

So, that is one of the operational side, financial impact : before looking at the trend of the financial figure and if we could analyze and bring some kind of report back to the business and helping them saying that, hey, the business, we really need to move in a different direction. Our sales figures top line and down and how it is moving, giving a good analytical figure.

 

Q.2) What are the operational and financial benefits you have observed with digital transformation?

These are a few areas, you know, depends on what is the key goal element of the business. You need to really bring in the digital things up and leveraging it for the business.

It can start anywhere. It can start from the customer as a CRM, working with the ERP on the operational side, working with the finance, giving the financial benefit.

So, it’s a whole gamut of the business from a quote to cash.

Making from the CRM side, from the customer to the business, the operation of the business, the quality on the quality processes moved from manual process to electronic process set with the business process going the logistics taking our logistics out, the inventory out of the business, all the processes that involved being brought under the digital scanners with multiple technology and tools, which is eventually help us in leveraging more efficiency of the worker. Where our worker used to spend two hours for a reporting manually, right now it is happening in a click of a button. So, efficiency got multifold, increased for all the processors from quote to cash.

 

Q.3) Why do digital transformation projects fail? What are the elements of a successful digital transformation?

We really to think about it why we are doing changes. Every changes that we would like to bring in there has to have a definite process to understand why we are bringing this change management into process, what value we are bringing in. That is the first thing. So, if I decide that I want to automate my three or four process in my business with a digital tool. What value is going to bring in? And if it’s going to bring in certain value, how reliable and how resilient it’s going to be so I can build up a tool that are tools, hundreds of tools available in the market, but understand what tools are bringing in.

How reliable is that tool? Whether it is that tool is efficient enough to work in an organization where we have thousand of processes going on in the back end.

So, we really need to evaluate step by step what we are doing on and lay every step, in a proof of concept manner. We do every step, we build up as tools and see what is the result bringing in and the most important part and wants to build up a tool, consistency of the tool. Just not you create it and end it. It has to be maintained well and observed well and take feedback. Once you build any automation, we have to take continuous feedback from our stakeholder to understand what is going wrong with the tool. Immediately start upgrading the tool as fast as possible. That is where is the key to sustain the digital transformation. If we don’t take the feedback and just keep running it, it is not going to help.

 

Q.4) What are the challenges you see in the digital transformation scenario in India?   

I have never seen cost is a challenge for digital transformation. I think where the challenge comes the most is to understand what level of changes we’re going to bring it into the organization, whether it’s going to be a step by step changes, small changes or a big bang approach of changes and communicating back to those changes to the leadership and make leadership aware. What benefit is going to bring it to the organization? I think that is the level of communication and understanding that need to be liaison between IT and operations and the business.

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