Digital transformation is about real change from old to new in pursuit of value generation in a changing landscape. Large enterprises often embark upon digital transformation to stay relevant in face of new and evolving challenges. These common sets of challenges range from legacy systems to legacy processes, culture and/or mindset.
While the above is true for large enterprises, digital transformation has a different meaning in the context of digital native businesses. Digital natives are those businesses that have their inception in the last ten years and use digital medium as their primary mechanism of value creation. They don’t suffer from legacy baggage.
Digital native businesses share the following common technological characteristics that shape their digital transformation needs:
Digital natives use cloud computing along with modern practices such as agile and continuous integration and delivery (CI/CD). However, like any business, these companies still need to evolve with technology. And in a world where technology changes so quickly this is difficult: IT architecture becomes slow and inconvenient, costs escalate, security vulnerabilities appear from nowhere, data volumes explode and cost more and more to store.
Transforming digital natives
Digitally native businesses are highly technical, but generally in specialist areas. They may be “born in the cloud” but many struggle to leverage the full potential of emerging tech such as cloud, data and AI.
The following are the four key technological challenges on their continuous transformation journey:
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