Digital transformation is everywhere nowadays, and the Middle East is no exception. But what is digital transformation exactly? And what are the main building blocks? Mark Godson, Senior Partner, Country Leader and Managing Director at Baker Tilly in the UAE, sheds light on the basics.

The term digital transformation is trending, but it is used widely and views as to what it really means differ wildly. Some view it as a new set of leading edge technology solutions, that can be put onto existing technology/processes to be more efficient.

At the other end of the scale, people view digital transformation as a holistic new state of business integration enablement.

Mark Godson, Senior Partner, Country Leader and Managing Director at Baker Tilly in the UAE 

So let’s break the concept down into what needs to be done and the path to success.

Firstly, lets break the myth. Digital transformation cannot be achieved with any major impact by adding digital point solutions on top of the existing technology landscape. There are a number of things that have to be done first. Unfortunately, these major items are not the futuristic items many hope, but foundation blocks that need to be in place (and probably are not stable in the current IT landscape).

Step 1) Data Governance
If the core data at the ERP transaction layer is not controlled, accurate, contains integrity or is incomplete, then it has to be rectified. If not fixed, a poor data governance will magnify issues and feed incorrect decisions, as applications for data driven ways of working leverage core data.

Step 2) Hardware/Infrastructure
Is the core IT up to date and scaleable to meet the demands of the digital age? And with artificial intelligence entering the fold, demands on IT hardware and infrastructure are set to rise further.

Step 3) Documentation
All processes work on historical and current documentation. To enable a digitised way of working, documents should be digital ready and held in content management solutions.

Step 4) ERP
ERP is the backbone of the technology landscape, and plays a central role in running business operations. Key is to ensure that the ERP is up to modern standards, and is well integrated with other systems.

When embarking on a digital transformation, all four items above and other areas need to be assessed for digital readiness.

In practice, most companies fall short on their readiness as they launch digital transformation initiatives. Many jump to digital when they have failed to fix the current IT landscape, basically meaning that they take all their current IT issues into their future digital blueprint, seriously undermining the impact and benefits of the transition.

One major consideration to keep in mind is cybersecurity. As the digital maturity of companies progresses, so does the risk that their digital assets are compromised or stolen in a cyber-attack. In sync with the implementation of digital transformation, a robust cybersecurity advancement programme must be delivered to ensure elevated protection.

At Baker Tilly, technology is a core part of our practice and we are investing heavily in bringing to the market the talent for all the segments of consulting products and services. The firm operates as an integral and expert partner for digital transformation projects.