Area and direction of digital transformation

  I would like to explain in more detail the area of DT, which was shown in the difference between DT and Smart Factory, and tell you what direction each area should have. DT is defined as 'management innovation activities across the company that fundamentally change strategies, organizations, products/services, processes, and systems by utilizing the company's digital capabilities'. It is literally a digital-based company-wide innovation activity. These DTs can be broadly classified into five types.

   First, strategy. The vision and roadmap, which are the company's major direction and orientation, should be the basis. DT should also help achieve the company's big direction or purpose, and going differently from the company's direction is no different from rowing a boat on the sea without knowing where it is going. Therefore, in this area, 'management leadership and clear direction' and 'continuous promotion through establishment of a mid- to long-term roadmap' must be secured to act as a rudder for DT promotion.

   Second, organization. In order to implement DT, there must be a dedicated organization and manpower. There are many difficulties in promoting DT tasks as part-time or TF-type temporary organizations. Because we have to change existing things and take advantage of digital technology that we have no idea about, the resistance and backlash from the business is much stronger than before. For this reason, it is difficult to achieve results with the DT department alone, and a company-wide innovation promotion system must be established.

 

 

  Third, the business model. I explained that 'DT in its true meaning is the concept of converting an existing business model into a new type of business model'. This transformation is possible because of new technologies, and efforts are needed to develop new products and services based on the data accumulated through these new technologies. It is possible to create a business model that is completely different from the existing business, but it is also a good way to apply digital to an existing business model. If it is difficult to build a new business model on your own, you can build it through strategic partnerships.

   Fourth, value chain. The value chain is where improvement actually takes place, and it is an area that is subject to various DT tasks. In this area, work should be driven towards leveraging new technology and data to improve processes and increase productivity. It is a very important area because one of the most important tasks in the value chain area is the creation of synergy through the connection and integration of internal and external value chains.

 

Nvidia DGX Workstation

  Fifth, IT capabilities. After all, it is the IT competency that actually enables the direction of strategy, organization, business model, and value chain. I can say that the final look of the tasks is a system implemented through IT. Digitization, which converts offline manual work into digital ones of 0 and 1, and digitalization, which makes enterprise data generated in this way into an integrated/collected/analyzed system, are considered to be very important directions.

   In order to make DT successful, it is not enough to have only a small number of people in DT or IT organizations. This is a difficult task that can only be achieved by integrating various components of strategy, organization, business model, value chain, and IT capabilities across the enterprise.

   In the next part, I will explain the DT technology applied to each value chain.

 

<My Book, 'Next Digital'>

 

넥스트 디지털 - 예스24

 

<My Youtube Channel, 'Haejin Jeong TV'>

 

Haejin Jeong TV