Topics In Demand
Notification
New

No notification found.

DIGITAL ENTERPRISE TRANSFORMATION, INDIA PARADIGM: BUSINESS PROCESS DIGITALIZATION
DIGITAL ENTERPRISE TRANSFORMATION, INDIA PARADIGM: BUSINESS PROCESS DIGITALIZATION

December 31, 2022

538

1

“At least 40% of all businesses will die in the next 10 years… if they don’t figure out how to change their entire company to accommodate new technologies”

- John Chambers, Former Executive Chairman & CEO, Cisco Systems

This is the fourth of the multi-part blog series titled ‘DIGITAL ENTERPRISE TRANSFORMATION, INDIA PARADIGM’ and covers the State of Technology Adoption in India from the standpoint of digitalization of business functions. For the purpose of this survey and the ensuing report, digitalization of business functions is measured in terms of percentage of workflows that have undergone 100% or nearly complete digital transformation, as a percentage of total workflows.

This blog is in line with my previous blog (DIGITAL ENTERPRISE TRANSFORMATION, INDIA PARADIGM: STATE OF TECHNOLOGY ADOPTION – CONVERGENCE OF MAINSTREAM AND EMERGING TECHNOLOGIES) which set the background for my present and upcoming blogs, focusing on outlining the key findings on digital enterprise transformation from the point of view of Indian end-user enterprises, and drawn from the NASSCOM-Avasant “Digital Enterprise Survey” conducted in May’2022. Based on the findings of the survey, NASSCOM and Avasant formulated the “The Digital Enterprise Maturity Index,” which is a key constituent of the “DIGITAL ENTERPRISE MATURITY 3.0: Boosting Business Resilience through Technology” Report published in July 2022.

KEY INSIGHTS ON BUSINESS PROCESS DIGITALIZATION: 

  • While considering business functions with more than 40% of their workflows digitalized, in FY2022, digital transformation of the Finance function was at the forefront of business digitalization for Indian enterprises as compared to IT being the most digitalized function globally.

In terms of digitalization of customer-facing functions such as Customer Service and Sales & Marketing, Indian enterprises are still playing ‘catch-up’ as compared to their global peers. Thus, tech transformation for Indian enterprises is still concentrated on back-end support functions, such as Finance, to a great extent. Further, enterprises indicated the three major digitally transformed sub-processes (with 60% and more of the workflows digitalized) within Finance as - Financial risk management, Strategy, budgeting, & forecasting, and Accounts payables and receivables. However, digitalization of the Sales & Marketing function is starting to pick up pace for Indian enterprises.

For instance, TATA Steel ‘s Marketing & Sales (M&S) function leads the digital transformation charter for the entire company. The enterprise operates in three core market segments –

  1. Business-to-business (B2B) companies,
  2. Business- to-Emerging corporate account segment (B2ECA) or small and medium-sized enterprises (SMEs), and
  3. Business-to-consumer (B2C)

In order to brainstorm and execute a formal digital strategy with a consumer-centric approach, the enterprise set up a special digital taskforce constituting 25 senior and mid-level executives. This focused group was put together under the Head of Digital Projects representing the Business Excellence & New Projects division and collaborating with key business verticals - Automotive & Special Products, Branded Products & Retail, and Industrial Products, Projects & Exports – and empowered the digital transformation journey of the organization.

This digital team came up with a 5-step robust process to implement the digital transformation strategy across the organization, cutting across various segments—namely B2C, B2B and B2ECA—as well as business verticals. The 5-step process is as enumerated below:

  1. Build organizational consensus for action.
  2. Identify high potential digitization initiatives within divisions.
  3. Select and implement high potential initiatives drawing upon the strategic directive—Think Big, Start Small and Scale Fast.
  4. Set up governance mechanism for performance review of digital initiatives.
  5. Make digital transformation a virtuous cycle.

Consequently, the special taskforce introduced digital projects that instituted new business models, such as:

  1. AASHIYANA®, an innovative technology platform used to map the customer decision-making journey, and part of the Digital Enthusiasts Exploration Program (DEEP) at TATA Steel, was designed for the B2C segment. This platform focuses on e-commerce and early engagement platform for individual home builders (IHB), home makers and influencers,
  2. COMPASS® is a digital initiative for the B2B segment, and digitally enables supply chain visibility for industrial products, project customers and distributors, and
  3. DIGECA® is a digital intervention for the B2ECA segment to establish a management and analytics platform for ECA distributors that would enhance the proportion of value-added products and lost sales analysis.

As a result of all these initiatives, Tata Steel has been able to attain numerous positive business outcomes, such as cross-selling different products through integrated marketing across brands; longer touch time with the consumers throughout their home-building journey; enabling B2B consumers to plan their working capital better since stock movement is available to them online; better material visibility for B2B customers; catering to exclusive demands of its varied customer micro-segments through enquiry management and lost-sales analysis; scaling up its offerings by integrating multiple touchpoints such as financing and loans, training, expert interactions and ECA complaint resolution by enabling access of the DIGECA platform to ECAs directly.

adfgadfg

 

  • Notably, as shown in the figure above, across all functions greater number of Indian enterprises indicate having more than 40% of their workflows digitalized, as compared to their global peers. This signifies the rapid strides taken by Indian enterprises towards enabling value-driven digital transformation in the Business Process Management (BPM) 4.0 era.

In my forthcoming blogs, we will assess key trends focusing on distribution of workflows on Cloud, digital talent, hybrid work models, different dimensions of digital maturity and projected outlook for FY2023 with respect to Indian end-user enterprises. 

For more information on Digital Transformation and Digital Enterprise Maturity, please refer to the report downloadable at the following links: 

NASSCOM Website: https://nasscom.in/knowledge-center/publications/digital-enterprise-maturity-30-boosting-business-resilience-through 

NASSCOM Community:https://community.nasscom.in/communities/digital-transformation/digital-enterprise-maturity-30-boosting-business-resilience 

Earlier versions of the report can be downloaded from the following links: 

A NEW ORDER OUT OF CHAOS-BUILDING A FUTURE READY ORGANISATION-https://community.nasscom.in/communities/digital-transformation/new-order-out-chaos-building-future-ready-organisation 

REIMAGINING INDIAN ENTERPRISES' TECH LANDSCAPE IN A DIGITAL-FIRST WORLD – A NEW ORDER OUT OF CHAOS- https://community.nasscom.in/communities/digital-transformation/reimagining-indian-enterprises-tech-landscape-digital-first 

DEFINING THE DIGITAL ENTERPRISE - MAR 2020 -https://community.nasscom.in/communities/digital-transformation/defining-the-digital-enterprise-mar-2020.html 

Sources:

  1. DIGITAL ENTERPRISE MATURITY 3.0 - Boosting Business Resilience Through Technology
  2. NASSCOM-Everest Business Process Management (BPM) 4.0: Heralding the Start of a New Era Report
  3. TATA Steel Company documents; https://journals.sagepub.com/doi/full/10.1177/02560909211054700

 


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


images
Prerna Buckshee
Manager - Research

© Copyright nasscom. All Rights Reserved.