3 Foundations for a Successful Digital Transformation

Successful and sustainable digital transformation is based on three essential elements: a good architecture, a strong foundation, and a coherent and fit-for-purpose supporting infrastructure. Software Group's decade of experience in driving the digital transformation of financial institutions has enabled us to identify the three key foundations for a successful digital journey. Opening up to your ecosystem is another key differentiator. Open banking allows for strategic partnerships to be established with financial technology companies, telecommunications companies, and insurance providers.These partnerships enable financial institutions to offer value-added third-party services that can generate new revenue opportunities.

When analyzing these three main transformation challenges, it is emphasized that the foundations of a successful transformation are remarkably simple. Once optimized and connected, a company is ready to adopt future-oriented digital banking capabilities, such as instant payments, digital customer onboarding, origination, and service, as well as next-level technologies, such as Artificial Intelligence (AI) and Robotic Process Automation (RPA). To successfully develop and deliver constantly evolving digital offerings, companies must develop an organizational knowledge store about customer problems and potential solutions. To help companies develop the new capabilities they need to succeed in the digital marketplace, Ross and his co-authors identified five fundamental pillars of digital transformation. What companies don't want to do is rush to create an ambitious new digital platform as a first step, an effort that can cost tens of thousands of dollars.

It's relatively easy to see the impact of a digital transformation on your processes and operations. At Schneider Electric, it means not only selling electrical equipment but also offering a digital services platform that allows customers to intelligently manage energy supply and use. However, just like exercise, the basis for a successful digital transformation starts with a good understanding of the basics. Digital transformations, especially the implementation of EDI systems, offer numerous valuable benefits for your company and your customers. Yet many financial service providers are finding it difficult to balance new regulations, the disruption of financial technology, and the heavy burden of traditional systems while paving the way for digitalization.

Just because you use the latest and greatest technology to create your product doesn't mean that your company has undergone a digital transformation. That said, when studying companies that were on their way to becoming digital companies, two things were highlighted. A digital transformation means that you have implemented a technology that will enable completely new processes.