In today’s rapidly evolving business landscape, the term “Digital Transformation” has become an essential buzzword. However, its meaning varies widely, as different individuals and organizations interpret and implement it in diverse ways. Having recently attended the ITB 2023 conference, I’ve been reflecting on the numerous conversations and presentations that revolved around the role of technology in driving change. As CEOs and business leaders, it is our responsibility to understand the essence of digital transformation and utilize it to steer our organizations toward success in the 21st century.

Defining Digital Transformation

At its core, digital transformation is an all-encompassing concept that signifies the integration of digital technology into all aspects of an organization’s operations. It can range from preparing an IT infrastructure for next-generation advancements to incorporating self-service options for customers through mobile applications. Ultimately, it is about adapting to the changing expectations of the modern consumer and staying ahead in a highly competitive marketplace.

At the base line making changes in any organization has to start with defining what business leaders want to do in future-proofing their IT stack. Some of the changes that are required to complete a digital transformation may not be guest-facing but are absolute requisites in order to enable change. An understanding of priorities is ultimately the most important step for any hotel group in defining a roadmap of change and deciding where to start.

The Necessity of Change

Change is inevitable, and embracing it is crucial for an organization’s long-term success. As the world becomes increasingly interconnected, businesses must evolve to remain relevant and satisfy the needs of the tech-savvy consumer. Thus, the question is no longer “if” we should implement change, but rather “when” and “what” aspects of our business we should focus on to facilitate a seamless transition.

Current IT leaders struggle to navigate the myriad of IT technology systems available to them and how the application will help with a business’s need. Max Starkov an adjunct professor NYU Tisch Center of Hospitality has been cited multiple times touting the needs for hoteliers to fill positions of “technologists” who can then help lead the priorities for what a digital transformation looks like. Technologists should be educated on the business needs of a hotel operation but also have an understanding of the basic technical capabilities needed from a partner to accomplish the business need. Technology companies that spend time educating about the business problems they solve will create good will with these Technologists.

In short both hoteliers and the vendors that serve them have to play a part in helping adapt change.

The Power of Strategy and Planning

Change can be challenging, and digital transformation requires a clear vision, strategy, and plan to ensure successful execution. To position your organization as a leader in the industry, it is essential to identify and prioritize the areas of your business that would benefit most from digital innovation. This may include adopting new technologies, streamlining processes, or enhancing the customer experience through digital channels. By outlining a roadmap for change and setting tangible goals, you can minimize potential risks and maximize the positive impact of digital transformation on your organization.

Patrick Apostolo, Corporate Operations Director, EMEA for Radisson Hotel Group presented at a panel discussion where he shared Radisson’s journey on how they worked to digitize the guest journey. Patrick was quick to point out that they created a plan for each stage and concentrated on implementing one stage at a time. He emphasized how important it was to break a large project into smaller pieces to successfully implement change.

Regardless of how we approach change having a well-thought-out plan that has the flexibility to adapt to potential unknowns is an important part of the strategy. Building, testing, refactoring, rethinking, rebuilding and releasing are all part of the journey of digital transformation. Strategically it’s important to plan for the unknown but it’s unlikely that everything will be perfect in the first execution. It’s important to stress that we must anticipate a certain amount of refinement will be required on every execution because sometimes the biggest obstacle to change is being focused on perfection. Refining and refactoring are natural steps in the digital transformation journey to deliver a better digital guest experience.

Conclusion

As CEOs and business leaders, it is our duty to recognize the opportunities presented by digital transformation and embrace them proactively. By fostering a culture of innovation and adaptability, we can position ourselves at the forefront of our respective industries, ensuring a prosperous future for our organizations and our customers. As we navigate the complexities of the 21st century, let us remember that change is not only inevitable but also an essential driver of progress and success. Embracing digital transformation with strategic planning and execution is the key to unlocking a world of untapped potential for our businesses.