THE term “digital” seems to be the latest buzzword in business nowadays. Some businesses claim they have already adopted the digital way of doing things in their workplaces and that outsourcing providers are offering digital solutions that can transform a workplace environment more efficiently and productive. I myself was confused at first what many people and businesses call as the digital way of doing work—the digital generation’s way of doing things differently and better.
As providers, we do not want to deceive clients into thinking that what we offer are solutions that fall short of the promise when implemented later. That is the fault of some solutions providers (perhaps not intentionally) because they might have incorrect definitions of what digital solutions are. Buyers may also have a different notion that, at times, result to misunderstanding with their providers.
An article in Sherpas in Blue Shirts, entitled “So You think You’re Digital” by Sivaram S at everestgrp.com, directly and clearly defined what digital adoption is with the objective of achieving cohesion in the industry. The author debunked certain myths, such as that about having a single or standalone implementation as already digital adaptation. The most popular use of digital is in the marketing department, but digital adoption encompasses the whole enterprise, not just the front office. In a true digital environment, implementation is also important in back-office and core mid-office processes. In fact, the article mentioned about North American enterprises investing more on back and core mid-office processes rather on market-facing processes.
The article also mentioned “digital washing,” pulling a bait-and-switch with hype terms such as SMAC (social, mobile, analytics and cloud) or the favorite of many, the BYOD (bring your own device). Some people think adopting one of these is already digital adaptation. This is just a small part of a more comprehensive system involving an array of technologies to provide and support a smooth flow of processes from the back-office to the mid- and front offices.
To those who are not familiar with the definitions of these office processes, back-office includes finance and accounting (F&A), human resources (HR) and procurement. Core mid-office refers to operations and production and, of course, the front office are the ones directly handling clients and promoting the business, which are the marketing and sales offices.
In a Technology Vision survey conducted by Accenture polling more than 2,000 business and technology executives across nine countries and 10 industries, it was revealed that 62 percent invest in digital technologies and 35 percent are extensively in digital as part of their overall business strategy. But the big question is: Will investment in this digital adoption bring in the expected return on investment (ROI) of the business?
Some companies look at more than just making profits but also in touching lives and, perhaps, making a better world. The mission now, as I see it, is PPP or profit, people and planet. Digital technology, hopefully, will create an era of “digital ecosystems” (source: Digital Business Era: Stretch Your Boundaries in techtrends.accenture.com) where the focus is shifting from “me” to “we.”
A good example mentioned in the Accenture article is Philips, a company no longer just producing medical equipment but crafting health-care applications to enable collaboration and workflow between doctors and patients from self-care and prevention to diagnosis and treatment up to recovery and wellness. This is done through Philips imaging and monitoring equipment and personal devices and technologies, like Apple’s health kit.
The technology will make use of the vast electronic record, diagnostic and treatment information that enhances the decision-making capability of the medical professionals to improve a patient’s health.
But let us go back to the question of ROI. Is it worth the investment? Is there a choice? Look at what happened to Kodak, Motorola, Nortel and BlackBerry. Because they failed to innovate or were slow to innovate, they are no longer big names now or/and have gone bankrupt. There is risk in every investment but if taking risk is inevitable, don’t you think it is worth taking that risk?
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Wilma Miranda is the chairnan of the Media Affairs Committee of Finex, treasurer of KPS Outsourcing, Inc. and a managing partner of Inventor, Miranda & Associates, CPAs. The views expressed herein do not necessarily reflect the opinion of these institutions.