In a keynote address at Xcelerate 2024 Hyderabad, V. Srinivasa Rao, Chairman & MD of BT&BT, delved into the transformative power of digital technology and its potential to drive business growth. Rao emphasized the importance of understanding the distinctions between digitization, digitalization, and digital transformation, and outlined the key strategies for organizations to embrace the digital age.

The Evolution of Digital Transformation

Rao began by clarifying the terms digitization, digitalization, and digital transformation. He explained that digitization is simply the conversion of data into digital format, a process that has been commonplace for decades. Digitalization, on the other hand, involves leveraging technology to solve problems beyond automation. It encompasses features like remote access, real-time data, and predictive analytics.   

Digital transformation, however, is a more profound shift that involves rethinking business models, processes, and operations. “It’s about transforming your entire ecosystem, from products to services to workplaces,” Rao stated. He highlighted the emergence of new business models, such as those pioneered by Uber and Ola, as examples of digital transformation in action.   

The Power of Modern Cyber Systems

Rao introduced the concept of a modern cyber system, which combines information technology, communication technology, and operational technology. He emphasized that the convergence of these technologies is driving innovation and creating new possibilities across various industries.

He cited examples of digital products and services, such as heart-monitoring T-shirts, self-driving cars, and personalized retail experiences, to illustrate the potential of modern cyber systems. Rao highlighted the increasing role of software in our lives, from cars to household appliances, and emphasized the importance of understanding and leveraging software as a key enabler of digital transformation.

The Five Levels of Digitalization

Rao outlined five levels of digitalization that organizations can progress through. Level 1 involves basic digital tools like Zoom, Google Meets, and productivity apps. Level 2 focuses on enterprise applications and digital business processes. Level 3 involves transforming core processes and operating models. Level 4 entails digitizing products and services, and Level 5 represents the ultimate goal of creating autonomous operations.

The Challenges and Opportunities

Rao acknowledged the challenges faced by many organizations, particularly those that are not born digital. He emphasized the need to adapt to the changing landscape and leverage the capabilities of modern cyber systems. He also highlighted the opportunities that digital transformation presents, including improved efficiency, enhanced customer experiences, and new revenue streams.

Key Takeaways for SMBs

For SMBs, Rao offered the following key takeaways:

• Embrace digital transformation: Recognize the importance of digital transformation and take proactive steps to adopt it.
• Understand the levels of digitalization: Identify the appropriate level of digitalization for your business based on its size and goals.
• Leverage modern cyber systems: Harness the power of IT, CT, and OT to create innovative solutions.
• Focus on people and processes: Prioritize workforce transformation and process optimization to ensure successful digital transformation.
• Embrace a culture of innovation: Foster a culture of innovation and experimentation to stay ahead of the curve.

By following these guidelines, SMBs can position themselves for growth and success in the digital age.

Watch the full session here: https://youtu.be/x1tZr1JggCU