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What You Need to Know About Digital Transformation with a Managed Service Provider


In today’s rapidly evolving and competitive business landscape, digital transformation is the strategic priority for every organization. In a recent IDC report, they indicated that worldwide spending on enterprise digital transformation solutions will reach $2.3 trillion in 2023. The need to future-proof your business and embark on a digital transformation journey is urgent. However, digital transformation can be a daunting task, especially when it comes to taking the first steps and creating a road map for system modernization. It requires moving away from existing legacy systems and investing in new and sometimes unfamiliar digital technologies like cloud, big data and analytics, and the Internet of Things (IoT)

It’s important to note that no company can transform on its own, and businesses can leverage digital transformation consulting services to plan and execute their strategy. 

In this article, we explore the fundamental concepts of digital transformation and how Managed Service Providers (MSPs) are uniquely positioned to help customers navigate their transformation journey, address their pain points and meet their long-term business objectives.
What is digital transformation?

Digital transformation is the process of utilizing digital technologies to reimagine business operations and customer experiences to meet the evolving needs of the consumer and market. When digital transformation becomes a continual process within an organization, the change is embedded in its culture which provides the agility required to meet the demands of increasing competition, creating value for the organization as a result. 

Why should digital transformation solutions be a strategic priority? 
Improve risk management

The need to improve the reliability of systems, networks, and infrastructures are some of the reasons why digital transformation is a strategic priority. With information security consistently at the top of mind among organizations, the need to better manage risk informs and drives digital transformation projects.  

Disparate IT systems increase the risk of security breaches, resulting in long-term negative effects on the organization’s reputation and customer trust. When IT systems are integrated across data systems, organizations are better able to manage risk and meet compliance requirements. 

Increase innovation

Innovation is at the heart of digital transformation solutions. Many businesses are dealing with outdated processes that inhibit innovation. Digital transformation involves the rethinking of existing processes and workflows with the aim to improve operational efficiency and open up more room for innovation. This means coming up with ways to streamline inefficient steps to accomplish the same goals, allowing employees to focus on adding more value to the organization.

Reduce Cost

Embarking on a program of digital transformation will have significant cost impacts initially. However, working with the right MSP on your digital transformation journey will result in far bigger and better returns in the future. The pursuit of operational efficiency in applications, infrastructure and data weeds costs out of your existing environment. For example, well-executed self-service options improve the way customers interact with businesses. This is evident in mobile airline apps which enable customers to perform functions such as tracking luggage and getting real-time flight status updates. By using IT innovations to provide on-the-spot resolution, businesses can boost customer experience and reduce operational costs.  

What are the key challenges of digital transformation today?
Business unit silos 

Digital transformation is as much about people and processes as it is about digital technology. When communication is lacking and employees do not understand or feel equipped to handle the change that is occurring, they would choose to remain in business unit silos that impede effective collaboration. Similar to business unit silos, inflexible IT systems and monolithic legacy application architectures are resistant to cloud migration or microservices architectures.   

Bridging the talent gap

In spite of the Singapore government’s efforts to push students to pursue tech education, the high demand for digital skills has resulted in a talent deficit. SMEs especially feel the pressures of the tech talent crunch, which is compounded by tight foreign quota and high salary expectations. As a result, Singapore companies have been investing internally to drive innovation and keep employees relevant. 

Information security concerns 

Improving the security of customer data is a primary objective for many organizations, particularly for those in a regulated field such as healthcare or financial services. Similarly, organizations that adopt quality controls like ISO or ITIL must ensure that these requirements and regulations are a part of their digital transformation objectives. As a result, IT integration demands tighter access controls and usage monitoring to ensure that security standards are met. 

What are the key attributes of a Managed Service Provider?
Enhanced User Experience 

MSPs are uniquely positioned to guide customers through the process of digital transformation and enable them to do business better, faster and more cost-effectively. 

When crafting a digital transformation roadmap, MSPs help customers identify key areas to prioritize change and customize solutions that suit the customers’ pain points, business objectives and the stage of transformation the organization is in, delivering an enhanced user experience as a result. 

Having the right tools and know-how

Most organizations today operate on disparate platform s from different vendors. To build a single, unified digital platform is no easy feat and without the right resources, and significant costs can be incurred along with limited success. MSPs, on the other hand, are expert advisors that can manage the complexity and develop technology systems that align with the company’s business and operational goals, allowing the customer to focus on reaping the benefits. 

End-to-end Technology Offering

MSPs play a part in every stage of the transformation journey, from digital strategy and onboarding to implementation and ongoing operations. The right MSPs leverage skilled and experienced technical specialists, support managers and advisors to provide mature and robust enterprise digital transformation solutions to its customers. MSPs can also offer 24/7 global support to maximize the efficiency of all the digital tools within the organization and deliver cost-effectiveness. 

What to look out for when selecting a Managed Service Provider?
Up-to-date on the latest trends

A strong MSP is a valuable ally in digital transformation. However, not all service providers are structured the same. A good MSP will be up to date on the latest trends in hardware, software, and networks, and can implement these developments if and when they are aligned with business objectives. 

Able to think strategically to optimize your IT efficiency 

In view of changing business conditions, choose an MSP that can tailor holistic solutions, be proactive in its role, and take the initiative to offer alternatives. 

Partnering an MSP in the early stages of your digital transformation means they can analyze your organization’s needs and match it to their capabilities and strengths for maximum advantage. 

When selecting managed services for digital transformation, choose one that will evaluate the age and viability of your IT investments and define refresh or end-of-life thresholds. They will determine areas for new investments that can maximize your IT efficiency. 

Willing to tie its performance to your business objectives 

Partner with an MSP who is willing to commit to measurable results and regular performance reviews. As enterprise digital transformation solutions can be complex and daunting, building a collaborative, long-term relationship with an MSP will take you a step closer to achieving your business objectives. 

How can Lumen help in your digital transformation? 

Lumen keeps abreast of trends in enterprise digital transformation solution and is capable of guiding any organization through the challenges of adopting new architecture, cyber security, cloud enablement and more. Lumen is a trusted IT partner that leverages experts in the field and whose consultants work closely with organizations to build roadmaps and provide practical recommendations. The broad portfolio of services allows Lumen to offer a comprehensive perspective for addressing client needs, amid changing business demands. 

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