Achieving operational excellence in the face of competing priorities can be challenging. Even with all the bells and whistles technology has to offer, it is still up to business operations leaders to identify and execute. This is where digital transformation comes in handy by bridging the gap between technology and operational excellence that was not achievable before. Achieving Operational Excellence through digital transformation is a transformation process that enables the organization to gain competitive advantage on business level and improve operational efficiency. It is a process that combines operational excellence thinking and software solutions within an organization.
The adoption of digital technologies enables organizations to improve their business operations and to achieve very ambitious operational targets. This is the main reason why modern executives must understaned basic terms related to enterprise digital transformation strategies, as well as how to reduce costs and increase productivity with technology. Even in cases where senior managers and C-level executives know little about cutting edge technologies, they must understand and appreciate the value of it. In practical terms, the digital transformation of an enterprise drives the following benefits:
These benefits are among the main factors that improve operational capabilities drive operational efficiency within an organization. For instance, employing people with the right skills is a key to achieving operational excellence. As another example, operational excellence is usually rooted on evidence based managerial decisions, as well as on the ability of an enterprise to continually adapt itself to the dynamics of volatile and rapidly changing business environment. Likewise, to remain operationally excellent, organizations must be able to reinvent themselves towards implementing excellent products and services that set them apart from competitors.
Digital transformation is not only about using new technologies but also about changing business processes in order to increase productivity and efficiency. Most importantly, it is about streamlining digital capabilities with enterprise processes towards excellent results. For over a decade, enterprises in different sectors are successfully implementing the alignment between digital technologies and business operations. Here are some examples from different sectors:
Overall, digital transformation is the process of shifting business operations to a digital platform. It is a continuous process, which means that it’s never done: It’s a journey that has no end. The same holds for operational excellence: It is not a static status quo, but rather a continuous journey where organizations must prove themselves every day. Digital technologies and tools are powerful vehicles for realizing this operational excellence journey, through helping enterprises in improving customer service, increasing revenues, reducing costs, and providing a better brand experience. In this context, modern executives need to know how to adopt and use digital tools to realize operation excellence. Moreover, they must strive to build a culture that encourages employees to take advantage of what the digital transformation has to offer.
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