In the past few weeks, many Nigerians have been greeted by downtimes from their banking partners. The reason for these downtimes is often ascribed to the Bank’s digital transformation journey. So what is this digital transformation?
Digital transformation essentially means using emerging technologies to adapt to ever-evolving customer expectations and market dynamics. Companies worldwide are recognising the need to embrace digital technologies, thereby reinforcing the drive for comprehensive digital transformation.
Why should you care? Any individual or organisation that will remain relevant in the future must be digitally transformed. While for an individual, this is a responsibility of one, for organisations regardless of size, this can be quite daunting.
Firstly, let me state that digital transformation does not mean purchasing expensive software or moving your IT infrastructure from on-prem to the cloud or deploying several artificial-intelligence-powered tools – it is much more. Digital transformation rests on three critical pillars, namely:
1. Culture
2. Technology
3. Innovation
Culture: The foundation of transformation
Culture encompasses the shared values, norms, and practices within an organisation. It dictates the way employees interact, make decisions, and embrace change. Any successful digital transformation begins with a cultural shift that aligns with the organisation’s strategic vision and goals. It is about reshaping mindsets, reimagining workflows, and creating an environment conducive to digital adoption.
Cultural change can be challenging. Consider the initial resistance to hybrid working models before the COVID-19 pandemic forced a global shift. Today, many financial institutions driving digital transformation rely on hybrid teams of staff and consultants. This demonstrates that cultural transformation must be deliberate and responsive to external and internal realities.
The greatest challenge in cultural transformation lies in overcoming entrenched mindsets. As the adage goes, “You can’t teach an old dog new tricks.” Traditional ways of working with rigid departmental structures, compartmentalisation, and the prevalence of closed office spaces are incompatible with the collaborative, agile approaches needed for digital innovation. Restructuring teams into open spaces to foster co-creation may initially be a cultural shock but is necessary for sustainable change.
Read also: Experts canvass green innovation, digital transformation for economic growth
Technology: The enabler of change
Technology is the second pillar of digital transformation. Over the course of industrial revolutions, technological advancements have catalysed major shifts: the mechanisation of production in the First Industrial Revolution, the widespread use of electricity in the Second, and the advent of electronics and IT in the Third. The Fourth Industrial Revolution, however, has ushered in an era of unprecedented velocity, marked by rapid progress in AI, cloud computing, data analytics, and robotics, among others.
Given the pace of change, organisations risk deploying obsolete technology if they take too long to implement. Conversely, hasty deployments without adequate planning can expose systems to cyber threats. Therefore, many organisations now employ agile methodologies to iteratively develop and deploy technology solutions that can evolve alongside the market.
For technology to drive transformation, it must align with the organisation’s environment, vision, and regulatory constraints. In some jurisdictions, regulatory mandates such as requirements for local data centres heavily influence technology decisions. Moreover, the successful deployment and adoption of new technologies require active engagement and buy-in from all stakeholders. Failure to secure this can lead to internal sabotage, delayed implementations, and limited utilisation of new systems. Proper stakeholder identification, engagement, and training are critical to successful technology deployment and utilisation.
Innovation: The visible outcome
Innovation is the third and most visible pillar of digital transformation. It is the outward manifestation of creativity, supported by the right culture and technology. Innovation encompasses new products, services, platforms, and internal processes, reflecting an organisation’s ability to adapt and lead in the digital space.
True innovation starts internally. For example, many financial institutions strive to eliminate paper-based processes in customer-facing activities but still rely heavily on manual paperwork internally. Such inconsistencies hinder the full realisation of digital transformation. Internal processes must reflect the organisation’s commitment to innovation before these values can be effectively translated into customer-facing solutions.
Moreover, product innovation should be driven by a deep understanding of customer needs, rather than by a desire to stand out. A unique product is only as valuable as its relevance to users. Rapid time-to-market is essential, given the speed at which technology evolves. Organisations must therefore maintain a balance between novelty and practicality, ensuring that every innovation genuinely adds value to the end-user.
Conclusion: A call to action
Digital transformation is not a one-time project but an ongoing journey requiring a holistic approach. Organisations embarking on this path, the following recommendations are essential:
· Start from the Top
· Cultural Alignment
· Continuous Learning
· Reskill and Retrain
· Right Technology Fit
· Internal Competency Building
· Align with Vision
· Cybersecurity Focus
· Customer-Centric Design
· Comprehensive Support
· Adaptability
In conclusion, a successful digital transformation journey rests on a harmonious balance between culture, technology, and innovation. Organisations that effectively integrate these three pillars will not only keep pace with the Fourth Industrial Revolution but also set new benchmarks for success.
This article is written by Dr Tope Fasoranti, an Economist, a Financial Consultant, and a former Executive Director at Zenith Bank Plc.
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