<p>Traditional organizations are facing challenging times as the new digital economy or D!conomy changes the rules of the game, sending every business across every sector into a wave of digital transformation. Companies that recognised and reacted to this disruption on time, have reaped the benefits of their openness to change, while others have had the change thrust upon them. A prime example is the print news media business, which has gone through significant upheaval in the recent past because the entire industry failed to see the disruptive business changes that were being brought about by rapid digitization. Several of these old and iconic names in the newspaper and magazine industry have since shut down or been taken over and digitized to make them more relevant for present consumption preferences.<br><br>A new order in business management is being brought about by the prevalence of social media, mobile apps, enterprise mobility devices and services, opening up a brand new world of customer engagement, distribution efficiencies and supply chain management and posing a serious threat to traditional organisations that refuse to change with the times. Digital transformation today is an integral step to be adopted by all enterprises and these digital changes or technological enhancements have to be embraced across all departments within the organization. According to a study conducted by MIT's Center for Digital Business and Capgemini Consulting, digitally equipped enterprises are 26% more profitable than their fellow competitors. Going digital gives enterprises the means to capitalize on the power of their people- employees, partners and customers, to build efficiencies across the organization and expand markets through customer centric measures and enhanced customer reach.<br><br>In the case of Starbucks, an example of a smooth digital transformation, the globally recognized food retailer successfully went from a traditional coffee house to providing a distinct Starbucks experience. When their sales started stagnating back in 2008, the management decided to bring in a tech savvy workforce to get a fresh perspective on their business in an increasingly digitized world. A host of changes were introduced, from the myStarbucks app for locating the nearest Starbucks store or Starbucks Card Mobile app for mobile payments, Starbucks now ensured a full-fledged digital experience for their customers, and with 54 million Facebook fans, 3.4 million Twitter followers, and 900 thousand followers on Instagram today, Starbucks is regarded one of the most digitally inclined companies.<br><br>With all this digitization, the Chief Digital Officer (CDO) plays a major part in an organizations future and success. Here is CeBIT India's perspective on the role of the CDO:<br><br><strong>Openness to Change</strong><br>The CDO keeps traditional enterprises open to change. Most large corporates react to tiny start-ups with a David-Goliath like attitude, they tend to resist the idea that an old business model may not work anymore, or will soon become obsolete. There is also some amount of denial and disbelief that a small enterprise could compete with a business behemoth. This denial is dangerous as it often prevents them from identifying the disruption as a threat, sometimes compelling large companies to acquire small, would-be disruptors just to weed out potential competition. BPL Consumer Electronics, a onetime market leader with its Cathodray Tube Televisions, failed to see that the new technology of LED TV technology had the potential to steal their market leadership. As a result, competition like LG, Sony and Samsung were quick to enter the market, eventually leaving BPL far behind in market share.<br><br>The CDO's primary job is in helping corporations avoid such situations by keeping them aware of the disruptions in the market place and opening them up to the threats of inaction. In a way, the Digital Officer paves the way for to an agile enterprise that is ready to face market change.<br><br><strong>Planning for the Future</strong><br>Most companies get so caught up in day-to-day functioning that they do not dedicate enough thought towards what the future holds for their industry. A CDO, with his or her extensive knowledge about new technology and new market trends, has the ability to identify future trends and growth areas and turn the organizations attention towards these indicators. This gives the enterprise the first mover advantage in the industry. The acute digital acumen possessed by the CDO along with the capability of influencing and encouraging the colleagues to adopt and adapt to the changing trends in the market.<br><br><strong>Changing the Mind-set of the Organization</strong><br>The CDO works towards bridging the gap between business and technology as he quantifies the value of data available and accordingly monetizes it for greater return on investment by determining which is more valuable for the business. It might not be possible to transform a traditional company into a digital in a day, the process has to begin from scratch, right from creating awareness about the need for digital business, and encouraging the employees to embrace the change. The CDO has to emphasise the fact that it isn't just for the benefit of the enterprise but also for the employees as well.<br><br><strong>Making the Corporate More Accessible</strong><br>According to a 2012 Digital Survey, almost 89% of consumers turn to search engines to find information on products and services prior to making any purchase. And 79% consumers religiously follow brands on social networking sites for product updates. With the ever rising number of smart phone users and mobile apps, the boundaries of social networking are continually expanding. This helps a consumers retrieve any information ranging from the price of the product to a comparison between brands and available deals, at any point of time.<br><br>In simple terms, the CDO leads an enterprise towards digital transformation. Entrusted with the responsibility of modifying the traditional IT policies and business processes of an enterprise, she/he brings them up to date with present trends in technology whilst making full use of it and reaping maximum benefits.<br><br>Globally, there is emerging a rise in the number of enterprises looking for a CDO. The foremost reason why an enterprise needs a CDO is because s/he understands the opportunities awaiting to be grabbed in the digital and has a fair idea as to how to successfully achieve that goal. It is imperative that the CDO has a good working relationship with all the departments because it facilitates in breaking the isolation between the departments and successful application of the digital measures.<br><br>D!conomy is the lead theme this year at CeBIT India and the show will focus upon the industry trends driving Digital Transformation.<br><br><em>The author, Mehul Lanvers Shah, is managing director at Hannover Milano Fairs India</em></p>
