The trend of digital transformation is not only reshaping the business, but also IT organizations within industrial icons and brick & mortar behemoths in major ways. Are you ready for the challenges the trend will have on your IT organization?
The push for digital transformation is rapidly shifting the business landscape for companies of all kind. From upstarts born in the new technology boom such as Uber and Airbnb, to some very old "traditional" giants. This trend is having a massive impact on not only how IT is organized, but who will be leading these teams as they rush to remove the old superficial walls once separating "the business" and the IT organization. Of course, while this reshaping of business technology is occurring, existing IT teams will need to find a way to balance the new digital transformation imperative while managing the demands of current systems.
As weakness continues to show in brick and mortar retail and online shopping continues to gobble up shares, Walmart is furthering it's pivot into the online space and lessening Amazon's competitive edge in e-commerce. In 2015 Walmart spent a staggering $10.5 Billion on IT and is currently in talks to purchase online retailer, Jet.com, for $3 Billion; a move which will expand Walmart.com well past the current 11 million products they offer online (note: Amazon.com presently offers 260 Million online products). Additionally, they announced earlier this year that they are combining their currently separated e-commerce and corporate IT groups into one unit called Walmart Technology Group.
These digital transformations are expected to help Walmart:
GE formed GE Digital last year with the goal of becoming a top 10 software company by 2020. Bill Ruh, Chief Digital Officer heads the business already with $6 Billion in revenue to compete against IBM in the Internet of Things arena. In an interview with Forbes he said “We’re taking a lesson from the consumer side of the internet — the Googles, Facebooks and the Amazons, These businesses figured out how to manage large volumes of information and utilize it to provide new kinds of services.”
These digital transformations are expected to help GE:
Software companies are becoming automakers and automakers are becoming software companies. Some big changes are happening within the most iconic of industries. Ford is one of the leaders with their Blueprint for Mobility. This blueprint is shaped around four mega-trends they feel are on the horizon:
As a result Ford sees connectivity and technology as the primary enablers to meet the challenges brought about by these trends. Sensors, cameras, software, hardware all communicating together to solve traffic problems, avoid traffic accidents and sharing rides whether with drivers or fully autonomous.
These digital transformations are expected to help Ford:
For these three giants, along with most modern companies around the world, IT's ability to deliver on digital transformation will be paramount for:
While these change initiatives will provide greater opportunities for IT leadership and their teams to impact business strategy on the frontlines, it also means all eyes will be on the IT organization as it attempts the challenge of implementing these new digital transformation expectations while juggling existing service and system demands.
Are you ready for the challenge?
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