The reason behind the need to make digital transformation a priority for all companies across every industry is the urgency of marketplace competition. Adding to that cloud-based digital transformation that is introducing new products almost every few days, there is no doubt that we’re in the middle of the evolution of digital transformation.

Indeed, many companies have already created a new C-suite title, the chief digital transformation officer or CDTO. The purpose of this role is to determine which of all these new solutions and projects should be implemented in the company’s everyday business and how. With or without CDTO, it can be a bit overwhelming choosing the system of digital transformation for the company as many requirements need to be met. Companies need to ensure they are taking a modern approach but also meeting the needs of their employees and customers.

Moreover, there is a set of critical challenges of digital transformation you’ll surely face during your digital transformation journey. A CDTO can ensure these challenges are successfully met, but even then, you’ll most likely need to find help externally. But let’s move on for now.

Due to the evolution in digital transformation in the business world, companies first need to take a moment to review all solutions available to them at the given moment, select the right system for them, and then determine how to implement the system. Having a clear understanding of all solution types is the first step towards a successful digital transformation and all benefits that follow.

P.S. Before you dive into the implementation of a digital transformation system, you’ll want to know exactly what is the role of digital transformation in business growth. And we’ve prepared an article to help you learn all about it! 

So, let’s jump into the article and learn all about the evolving systems of digital transformation!

Systems of Record

The way a company will start its digital transformation journey will depend entirely on the needs of that business. For companies that have started their transformation early, systems of record were the foundation of their digital transformation.

Systems of record, or SOR, rely on utilizing internal data to store information that will be easily accessed by employees who need it. A SOR example can include a CRM for a customer-facing business or an electronic health record system for a large health care institution.

Systems of record are called like this because they create a record and specialized data a company can then use to make more informed decisions for the business. This is also the first wave of digital transformation because companies realized the potential of data and started seeking an efficient way to make the most of that data and enhance their relevant business processes.

Today, systems of record are still a central piece of the digitization process of any organization.

Every business will need to rely on a SOR at some point to become more efficient, however, having a SOR will not be enough. Organizations cannot be modernized just by having a solution, it needs to be implemented the right way to make the change an organization was looking for.

Just a note – we’ve published an article on 4 main types of digital transformation that will make a fantastic next read after this one. Be sure not to miss it!

Systems of Collaboration

After systems of record, what followed were systems of collaboration. The SOR didn’t live up to its expectations as the data was only available for certain departments of an organization, and there was no simple way to disperse it and ensure everyone is informed.

As companies were kept siloed, systems of collaboration offered a solution of tapping into that data gathered by the SOR and enabling for a flow of knowledge between departments at a speed impossible to imagine before this technology. The best examples of platforms that are based on systems of collaboration are Slack and Microsoft Teams which allow teams across the world to communicate and collaborate on different projects.

These systems of collaboration also allowed to pull out the knowledge that would stay hidden without them.

Systems of Engagement

The next step in the evolution of systems of digital transformation was the systems of engagement. The previous systems, systems of records and systems of collaboration, gathered an immense amount of information that needs to be compiled and digested in the right way. And to do that, companies were in a need of yet another system.

With systems of engagement, advancement in database optimization technology was achieved, so companies were able to gather and source data faster and provide valuable business insights at an impressive pace. There are many platforms we use today that are based on systems of engagement, such as Zendesk, Constant Contact, and Facebook.

The way that collected data is being used with such platforms has never been possible before the systems of engagement. These systems provided leaders and organizations with an ability to quickly process and make business decisions even quicker, turning them to be a crucial role in developing customer service innovation. Simply put, businesses leaders were now able to develop digital strategies and replace the product-focused approach with a service-focused one.

That resulted in an overall enhancement of the customer experience and prepared the business world for the following step in the evolution.

Systems of Productivity and Outcomes

The last stage of the digital transformation system evolution, or the currently best way to transform businesses, involves threading productivity and outcome systems. When organizations began combining digitization with productivity and outcomes, all of their existing systems can be used to work together aiming to add more efficiency to their teams, but without adding more to the current workload.

Finally, we’re seeing a progressing technology where businesses can make the most of all the systems available and use them in a unified way to create an improved customer experience platform that delivers revenue and productivity outcomes for everyone – customers, employees, and the company in general. Many companies now provide teams with the ability to link workflows and scale their productivity across the entire organization.

When a company achieved holistic digitization, all the workflows in the company can be mapped out easily, new tools can be adopted quicker, and the company can focus on creating a valuable end-user experience that leads to lucrative business results.

The system an organization is using needs to be aligned with the quarterly goals and business outcomes to make it work. These systems are the most efficient way to make use of everything such technology has to offer, and there is an indefinite number of possibilities with it.

Which system of digital transformation should your company adopt?

Depending on the degree of adoption of digital technologies in your organization, you’ll require a different type of system of digital transformation.

And if you’re looking to improve your organization’s internal processes and increase overall operational efficiency, you’ve just found the right partner to help you do so.

Whatever kind of system you’re is in need of, our team at Lumen Spei will design it and help you implement it in all layers of your organization. Digital transformation may often seem like a long and tedious process, and that’s why we’re here to demystify the entire topic for you and your business partners.

Feel free to reach out to us – we’d like to share some of our ideas with you!

Krunoslav Ris

Digital Transformation Consultant | Author | FinTech Specialist | University Lecturer | Executive Director @ Lumen Spei ltd. As a Senior Digital Transformation Leader experienced in driving organizational change and managing high-growth agendas, I have spent more than 20 years bringing technology to life, leading digital strategy across multiple channels, transforming ideas that have led to multi-million-dollar businesses, and executing the profitable deployment of new technologies across multiple industries.