Digital Transformation Is Fundamental Driver Of Every Industry: Falguni Nayar

Businesses and individuals should adapt to the constantly changing new environment, Nykaa founder and CEO Falguni Nayar said, as digital transformation emerges as a fundamental driver of most industries. She was speaking to a crowd at the Indian School of Business’ (ISB) graduation ceremony in Hyderabad.

Ms. Nayar, the event’s keynote guest, emphasised the significance of completely reinventing corporate operations by utilising technology to add value for customers. She told the group of company managers in attendance to embrace experimentation and iteration and not be scared to fail while utilising technology.

According to a press release from ISB, the graduation ceremony was held for the doctoral programs, FPM and as well as the Hyderabad-based postgraduate programme in management (PGP) class of 2023 and the postgraduate programme in management for senior executives (PGPMAX) class of 2022.

Strategy for digital transformation

Without a plan, it would be exceedingly difficult to accomplish meaningful change. Businesses need to manage five critical areas, oftentimes simultaneously.

1. Change in business approach

Because of digital transformation, technology is now at the centre of company strategy. With this approach, operating expenses and inefficiency can be reduced. The achievement of future objectives is made easier by a united business and technical paradigm.

2. Reorganization of business processes

Business practises must be modified, and new working techniques must be implemented in order to be agile and experimental. What are your company’s most pressing customer and employee needs, and how many digital processes be of assistance? Better processes all around can be the outcome of starting with these questions, whether that means improving customer service through better data and analytics, moving key services to the cloud, or incorporating sustainability into architecture, manufacturing, and supply chain operations.

3. Introducing novel methods for adaptability and experimentation

In order to meet rising consumer expectations and the velocity of change, modern capabilities of engineering should be matched with fresh working techniques. Most companies make foolish decisions regarding where to concentrate their technology resources. The secret is to embrace innovation and change. Successful digital transformation necessitates a fundamentally different approach—one that stresses technological accessibility and human adaptability. Successful digital transformation necessitates a fundamentally different approach—one that stresses technological accessibility and human adaptability.

4. An adaptable technological base for long-term change

Do not become dependent on a single technology. By remaining fluid and adaptable, you can foster innovation within your company and more easily forge ecosystem linkages that foster speed and scalability. With a modular strategy, rapid and long-lasting modification is possible, and it’s crucial to keep the customer in mind.

5. Management Is Improvised

All facets of the company are impacted by digital transformation. For it to be successful, it needs the backing of leaders and a culture that is in accord with which new technology to accept and how to best incorporate them into daily life. This comprises a team that is skilled in using digital tools, as well as the digital basis and operations. What should the workplace look like in the future? How should responsibilities and roles evolve over time? How might collaboration and information sharing be made better through technology?

How can leaders in remote work environments be taught to communicate better, show more empathy, and foster trust? Technology not only creates new challenges for workers, but it also provides many solutions. When individuals work in new ways, businesses frequently need to cultivate fresh talent in order to effect long-lasting change.

Falguni At ISB

There were 574 graduates from the PGP class of 2023, 64 graduates from the PGPMAX class of 2022, 4 scholars from the FPM, and 8 scholars from the EFPM. According to ISB, Ekansh Khatter and Sai Avinash Revanur from Hyderabad’s PGP class of 2023 won gold medals.

The graduates were urged by Dean Madan Pillutla to be strong and handle challenges head-on. Harish Manwani, chair of the ISB board, reminded the audience that there has been a fundamental shift in the expectations placed on business, saying, ” Your priority should be meeting the issues and needs of the communities you will serve, not just generating economic benefit.”

What does the industrial era of digital transformation entail?

The use of digital capabilities to improve productivity, raise customer value, control risk, and explore new potential for revenue production is known as digital transformation. Due to the worldwide nature of this change, digital technologies must be adopted for both internal and external processes, including those related to sales, marketing, and customer support. Companies must fundamentally alter the way they conduct business, be open to cultural change, and reevaluate the status quo in order to adapt.

As a result, crucial infrastructure can continue to run and production systems can be controlled virtually. According to a study by Accenture, “companies need limitless, adaptable, and essentially human systems to thrive in an ever-changing world,” which supports this. Putting the customer at the centre of the strategy, the study advises businesses to stop viewing their applications, infrastructures, and employees as independent entities and instead to view them as cross-cutting, interconnected systems that gave rise to the term industry 5.0.

Nowadays, personalization plays a big role in consumption and producing the same thing for everyone no longer sells. Products must be tailored to meet customer needs, as this is the only way businesses can succeed. In addition, organisations can automate product customization and even carry out operations remotely thanks to contemporary tools like artificial intelligence and cross-device communication. As a result, crucial infrastructure can continue to run, and production systems can be controlled virtually.

Industrial businesses’ digital transformation

People’s lives are being improved by technology, which is also making work easier in many different areas. By undertaking a digital transformation to stay up with shifting client expectations, a company can continue to exist in the future. It makes it possible for companies to compete more successfully in a market that is changing quickly due to technological improvements. Companies can gain operational and productivity advantages with efficient management of digital turnaround. Our post-pandemic world is shifting towards a digital fever mindset.

Companies will be successful if they provide intelligent customer journeys and experiences that enhance or complement people’s lives. Companies that don’t look to capitalise on emerging AI technologies and don’t use data to predict demand trends and make decisions that enhance the workforce will fail.

The most recent Harvard Business Review study estimates that in 2018, investments in digital transformation totaled about US$1.3 trillion. However, a significant portion of this money is ultimately spent on projects by businesses that fail because they are not well prepared for change. The process of digital transformation involves more than just making financial investments; it also entails creating strategies, putting them into practice, and addressing the opportunities and problems it presents. For their strategic initiatives, almost all businesses now need knowledge and skills in digital transformation.

The foundations of the sector’s digital transformation are innovation and disruption. Companies need to be aware of how their industry is changing and make sure they have the proper talent on board in order to implement new business models and develop and keep hold of existing talent. In the current business environment, disruptive forces are everywhere. For these reasons, it usually takes a significant repair of thinking and lifestyle to maintain the influence of such a transition.

What does the “new normal” entail for digital transformation?

Companies have faced shifting client needs throughout history.  The way modern society operated, however, changed as a result of the COVID-19 pandemic catastrophe, and those changes are likely to continue much beyond the COVID-19 wave. With the development of a vaccine, some aspects of our life, such as stringent lockdowns, may come to an end, but other aspects, like our use of digital devices, will persist.

Redesigning an organisation’s digital landscape is urgently required. Every area of a company’s operations, from client acquisition to post-sales support and service, will need to be fundamentally reimagined. In the current environment, an organisation’s survival may be in jeopardy if it does not undergo a digital transformation to match the needs of the business landscape.  Considering the safety concerns during the pandemic, swift adaptation to the current scenario is also essential for the successful delivery of goods and services to clients.

The typical worldwide supply networks face numerous obstacles as a result of lockout situations in different geographical locations. It is essential to alter corporate procedures affected by the pandemic quickly.

Why Digital Transformation?

There may be a number of reasons for a business to decide to become digital. However, the need of the hour is most often the driving force behind choosing the digital transformation route. The way that customers interact with businesses has changed dramatically with the introduction of social media platforms and web-based sales solutions. The world and the markets have both become smaller since the advent of digitization. Domestic and international competition are now on par. No place on earth is inaccessible to commerce now!

Customer expectations for timeliness and availability across multiple channels have altered as a result of digital solutions. Businesses are using digital technologies to help them customise their interactions, communications, engagements, and goods to meet the unique needs of their clients. Over the years 2020 to 2023, it is anticipated that spending on digital transformation would reach $7.4 trillion, expanding at a 17.5% CAGR. 

Edited by Prakriti Arora