Adaptation and strategising vital to digital transformation
Every single business, no matter how successful or large, has challenges in moving towards digital transformation, John Wagner, managing director and partner of Boston Consulting Group (BCG) said on Monday.
Businesses have to focus on a variety of aspects to cope effectively with digital transformation, he said during the interview with The Nation.
While the digital maturity of Thai businesses has improved across all dimensions, including growth, development and strategy, execution is painfully slow.
Only about 30% of companies navigate digital transformation successfully due to complex business structures and lack of investment and outcome precision.
"36% of companies in Thailand say they have invested 10% in digital transformation," he said, adding that there is a big gap between funding and digital transformation.
Aiming for a precise outcome is necessary to make companies successful and make it easier to invest in digital transformation.
Traditional businesses often have a hard time with digital transformation compared to digital natives – companies that emerged in the digital age.
Wagner, who was the first country manager of Facebook Thailand, outlined the six major principles of digital transformation:
1. Making sure the digital transformation strategy is clear to achieve a clear outcome
2. Making sure that digital transformation is not just the responsibility of CEOs
3. Ensuring that companies have employees with the right digital talent for specific outcomes
4. The technology sector moves fast and that makes it difficult for most companies to be as dynamic as required. Culture change is thus needed to adapt and adjust to keep up with technology
5. It is important that companies measure the progress along the way, so they can take steps toward outcomes
6. Having technology that can support business initiatives.
He also advised companies to emulate the way that digital natives grow to achieve success in digital transformation.
28% of traditional businesses in Standard & Poor (S&P) Global 1200 have successfully transformed, he added.
Wagner went on to say that generative artificial intelligence (AI) can make marketing activities faster and improve inputs but marketers need to learn how to use these tools to generate ideas.
The teams must have good judgement in deciding whether inputs from generative AI are helpful as it can offer broad and wide concepts.
He advised businesses to study in depth who their audience is and what they pursue, so they can launch personalised campaigns that meet their needs.
