What Does Digital Transformation Mean to Service Management
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Digital transformation is a concept that, although not new, can get lost in translation. To better understand what it means, let's take a look at some of the definitions given by industry experts.
Jorge Lopez, Research VP at Gartner, gives this terma more specific approachby calling it “Digital Business Transformation.”He explainsthatbusinessesshould use digital service management, digital technologies,and supporting capabilities tosupport the overall business strategy.
According toGregVerdino, technology author and key note speaker,digital transformation is all about closing the gap between what digital customers already expect and what analog businesses actually deliver. James Swanson, CIO at Monsanto,discussed digital transformation in terms of customer centricity.“We talk about automating operations, about people, and about new business models,” he says. “Wrapped inside those topics are data analytics, technologies, and software– all of which are enablers, not drivers.”
How do we define Digital Transformation?
Although we mayfindhundreds of definitionsout there,we can probably agree thatdigital transformationis allabout organizationsleveraging digital technology and information to transform how they deliver value to their customersand employees. In other words, it’s about:
Integrating technologyinto all the different areas of your business to create value for your organization
An organizational cultural shiftinto a digital mindset in order to adopt new and more efficient practices to operate your business
A great example that better illustrates this concept is the banking industry. When banks started, all of the customer-centric services were done with a teller at a brick and mortar location, but the cost of having so many branches and employees to managebecameexpensive. Banks then started to ask themselves: “how can we better service our customers and reduce overallcosts?” This question gave birth to online banking, and, eventually, mobile banking—where customers can access their bank information anywhere and atany timewith just one click.
Thebiggestchallengeofstarting a digital strategy and implementing digital service management, however,is thatthe organizationas a whole has to shift into a digital mindset in order for it to work, otherwiseitwill be disrupted by companies that are already born into the digital culture.Amazon,for example, can beseen as a technology company that sells products and not the other way around.But thistransformation is notachievedovernight, it takes time and strategy, and thisiswhere digital service management comes in.
What isITSM’s rolein Digital Transformation?
CIOs have a new role in the organization when it comes to digital transformation. IDC predicts that “By 2020, 60% of CIOs will implement an IT business model and a digital-first culture that focuses on creating digital products and services that improve user and employee satisfaction. Business-oriented IT will take center stage in [digital] journeys.”
Withsomany CIOs leading digital strategies,there still needs tobe a collaboration betweenall other departments withinthe organization.The following section talks about three waysITSMhelpsclose the gap between those who are implementingthestrategies and those who arenot.
1. Increase Agility when Delivering Services
Awell-established IT service management (ITSM) platformcansupport your organizationinbecomingmore agile in order to quickly react to change and adjust to new opportunities. Agility couldmean, for example,being able to roll out new technologies on a regular basis, such as a new mobile app or a software update.A quick-to-react IT service management (ITSM) infrastructure can help predict risks faster and correct problems as they happen.
Automationalsoplays a big part inmakingbusiness processesmore agile becauseit helps eliminatemanual repetitive tasks.Encouraging people to help themselves or be more self-sufficient and understanding which technologies can automate certain business procedures will free certain employees, such as the IT service agents, from routine tasks.
2. TransformtheUser’s Journey
Meeting the user’s needs through modern, digital IT service management and providing a positive experience to both customers and employees is essential to digital transformation.Improvingcustomer and employee engagement bycreating a more personalized approachwith the use ofself-serviceand self-help technologiescanboost employee productivity and encourage the adoption of new technologiesthat enable digital strategies.
The use ofAItechnologies, such as chatbots or virtual agents, canalsohelpoptimizethe way user experiences are delivered.This ties back to our previous point about automation,where users are encouraged to help themselves andknowledge workerscan focus on more high-value tasks.
3. Manage the Complexities of New Technologies
Having a modern IT infrastructure is important when managing newly-implemented technologies that can give employees the opportunity to be more innovative. Tools that help build more engaging interfaces and automate routine tasks can facilitate the delivery of services to your employees or customers.
But digital service management is more than just a way to manage software, it helps set a customized framework or base for the implementation of digital strategies while helping support change in all areas of the organization.
John Prestridge is an accomplished marketing and product strategist focused on customer needs. He helped drive product innovation and market development within the IT service management software industry to support the digital transformation of enterprise companies. He is a firm believer that ITSM 2.0 is the critical path for companies transitioning to the Digital Workplace. Prestridge brings broad expertise in the technologies shaping the future workplace, including service management, cloud computing, application virtualization, mobility, intelligent automation, and compliance.