The role of digital transformation in business development
What is the role of digital transformation in business development?
How to implement it and what to look for in this process? These questions were raised at the expert discussion organized by the European Business Association.
Sergiy Detyuk, CEO of Metinvest Digital, shared his experience of digital transformation in Metinvest Group. A few theses from his speech:
• Digital transformation is a necessity for any company in modern conditions.
It is directly related to the competitiveness of a business and its success in the market. For example, according to Deloitte research, companies with greater digital maturity were two to three times more likely than others to report annualized growth in net income and profitability well above the average for their niche.
• Digital transformation is a complex strategic restructuring of a business, rather than the automation of individual processes or functions within a company.
The main goal is not to introduce technology for the sake of technology, but to create additional value for business, customers, employees, partners ets. Every digital transformation is unique enough, regardless of industry or business size. It presupposes a clear strategy and roadmap, which in turn must be integrated with the business strategy.
• Successful digital transformation requires a proper organizational model for managing it and efficiently building internal processes.
Metinvest Digital, as an IT business partner of the largest mining and metallurgical group of companies in Ukraine, focuses on an integrated approach in which digital transformation is end-to-end and covers all functions from production to personnel management. The organizational model of its management is based on three levels: Business Engagement – Solutions Delivery – Operations, which are responsible for assessing business needs for digital transformation, introducing new technologies and their further support.
• Digital transformation must always start with building a reliable infrastructure and information security system.
The IT infrastructure must also be flexible and scalable to respond quickly to business needs. Metinvest Digital implements the Cloud First strategy, which allows not only to reduce the total cost of ownership of the Group's infrastructure, but also opens up new opportunities, especially with regard to the fast and efficient implementation of innovative, so-called cutting-edge technologies.
• Effective data management is the key to a successful digital transformation.
Companies have large amounts of data, but according to various estimates, up to 75% of all data is not used in any way. Last year, Metinvest Digital launched a large-scale Data Governance program that covers 16 projects. Its goal is to build corporate storage of unstructured and structured Data Lake / Data WareHouse data, as well as to improve the efficiency of data management in general.
• Digital transformation must be people-centered first.
Behind any successful digital transformation project are specific people, thanks to their professionalism, expertise and knowledge of which companies achieve the necessary results. Therefore, you first need to invest in the development of people, and then in products, technologies and solutions.