People, Processes and Perseverance: Unveiling the Secrets of Digital Transformation With Sanjib Sahoo

In the ever-evolving landscape of digital transformation, unlocking the secrets to success requires a nuanced understanding of not just technology but the intricate interplay of every stakeholder involved in making a digital transformation project successful. In an exclusive interview with Tech Achieve Media, Sanjib Sahoo, the Executive Vice President and Chief Digital Officer at Ingram Micro, offers unparalleled insights into the art and science of digital transformation. Since joining Ingram Micro in 2021, Sahoo has spearheaded the development of Xvantage, a cutting-edge platform that redefines the company’s approach to technology and customer engagement. His leadership has earned him accolades and recognition, cementing his place as one of the most influential business minds in the world. Sahoo shared percipient insights into his approach to digital transformation, which is rooted in understanding the critical roles of people, refining processes, and embracing perseverance.

Also read: Sanjib Sahoo Receives 2024 Dr APJ Abdul Kalam Award at the House of Lords

TAM: You’ve been recognized as one of the most influential business minds in the world.  How do you use this influence to inspire and drive change within the industry?

Sanjib Sahoo: I think it’s an honor to inspire others. Leadership doesn’t happen by coincidence; it’s a choice. Throughout my journey, I want to inspire people if I can because today, everyone sees the success, but there have been many ups and downs and failures along the way. The idea I want to convey is that I started from very humble beginnings in a small place in India and went through many challenges. If I can succeed, anyone can. Some lessons I hope to share are to never be complacent, challenge your limits, but don’t limit your challenges. Keep pushing yourself to be better and always focus on the art of the possible.

Sometimes we are constrained by our own thoughts, thinking something is too difficult. In my journey, whenever I was doing A, I felt I could also do B. When I was doing A plus B, I thought I could do even more. Constantly pushing yourself helps. Additionally, always focus on understanding the “why” behind your actions. Ask yourself why you are doing something and push yourself for more aggressive results. Ask “why not” to challenge the status quo and aim higher.

These are some of the lessons I’ve learned in my life and career. What you see today may look shiny, but it hasn’t always been rosy. This is true for everyone. I want to tell the youth to focus on their journey, be steady, determined, and keep going through the grind.

TAM: Your leadership has been highlighted as a driving force in the digital landscape. What are the core principles that guide your approach to innovation and digital transformation?

Sanjib Sahoo: Digital transformation is a widely discussed but often misunderstood term. We’ve been transforming for the past five, ten, even twenty years; it just went by different names. What does digital transformation actually mean? It means addressing two types of gaps within organizations: the opportunity gap and the performance gap.

The opportunity gap arises when companies fail to recognize market changes and make strategic decisions to avoid disruption. More than 50 percent of Fortune 500 companies have been disrupted or disappeared in the last 20 years. The performance gap, on the other hand, involves improving company operations and driving results, such as managing the P&L.

To bridge these gaps, companies need to leverage market knowledge, technological innovations, data, AI, and more. If they don’t, they risk becoming obsolete. The principle of maintaining an organizational DNA that focuses on the art of the possible and takes calculated risks (rather than avoiding all risks) remains constant. Whether you call it digital transformation, AI transformation, or business transformation, the essence is the same. Transformation is an ongoing process, not a project with an end date.

A company must learn to operate with a digital DNA, balancing risk with feasibility and focusing on a higher chance of success. This involves using emerging technologies to drive business value and creating an organizational culture where everyone acts as their own CEO.

Despite the hype, over 80 percent of digital transformations fail. Why? First, they often fail to connect business value with technology. For example, moving servers to the cloud should ultimately reflect in the P&L or balance sheet. Second, mindset change is crucial. The belief that what got us here will take us there is flawed; transformation requires a willingness to adapt and learn.

In large organizations, perfectionism can hinder progress. Striving for 100 percent perfection often results in slow execution and lost market opportunities. I believe that 80 percent perfection with 100 percent execution is better than the reverse. What’s imperfect today can be perfected tomorrow. The goal is to be “imperfectly perfect” but continuously improve every day. Transformation is about maintaining a continuous loop of improvement, focusing on value, and operating with a digital mindset. This is the essence of true transformation.

TAM: The Xvantage platform has been hailed as groundbreaking. Can you share the journey behind its development and its impact on transforming Ingram Micro into a platform company?

Sanjib Sahoo: I joined Ingram Micro about three years ago, with no background in distribution. I didn’t know much about the company, other than it being a tech giant for a long time. When I joined, I realized that as a company, we don’t produce anything ourselves. We sit between all these big technology brands, the OEMs, and the resellers, and through the resellers, we reach the end users. We touch almost 90% of the world’s population.

The challenge in the industry was to create a single pane of glass—a unified experience. We needed to solve problems like pricing for every single SKU and handle the complexities of billing and back-office operations. The industry was shifting towards subscription models and cloud dominance, whereas distribution had started with hardware.

My idea was to transform Ingram Micro into a platform using the 40 years of data we have to deliver an amazing experience. We started this journey with an idea and began working on it in 2022. We built a data mesh with AI and started using AI even before the hype. We developed headless engines to create a frictionless experience, brought in talent from Silicon Valley, and built a team comprising both industry veterans and fresh talent.

I introduced the concept of DigiOps. While we often hear about TechOps and SecOps, no one had thought about integrating digital technology to create operational value. DigiOps was about building technology to capture and create value through operations. This concept guided our journey as we expanded.

Today, the platform has come a long way. We are creating value and differentiation for our customers and vendor partners. We have built many engines, and our AI-driven, self-learning platform is truly changing the technology industry. More important than the platform itself is the passion and hard work of the employees who have worked tirelessly to transform a traditional organization into a cutting-edge platform.

Their dedication and commitment make me incredibly proud of the Xvantage journey. While I may be the face of the company, it is the hundreds and thousands of employees who have given it new life and helped us enter the market with renewed vigor. This collective effort is what makes me super proud of our journey.

TAM: What is your vision for the future of digital transformation, and how do you see Ingram Micro contributing to this future?

Sanjib Sahoo: Digital transformation, as I’ve mentioned before, is an ongoing process that never stops. It doesn’t have a finish line. One of the aspects often underestimated is that digital transformation is more about people than technology. While technology constantly evolves, the human element remains crucial. For instance, AI first emerged in the 1950s. Before AI, we saw the advent of cloud computing, among other technologies. These technological advancements keep changing, but people don’t change as rapidly.

Transformation should not be imposed on employees; it should happen with them. Engaging and integrating people in the transformation journey is key. We can build the best AI platform or digital infrastructure in the world, but if it isn’t utilized by employees and customers, it will fail. Remember, customers, employees, and suppliers are all people who need to use and adapt to the new technology. If they don’t, the transformation effort is futile.

Today’s employee experience directly impacts customer experience. Therefore, a significant part of digital transformation is about involving people. While automation is important, we must not overlook the human aspect. Transformation should be about enhancing experiences first, with automation following. Automation doesn’t mean eliminating people; it means changing the nature of their jobs.

Another crucial aspect is creating a robust architecture. Transforming is not just about technology; it’s about having a strong business case and understanding its value. The architecture of a digital system is like the foundation of a house. It should support various models and allow for adaptability. Organizations should focus on building a strong digital architecture, including rationalizing ERP systems, creating data lakes and stores, and developing APIs to ensure seamless data flow and a frictionless experience.

Governance is also vital. Organizations should have a framework to measure value accurately and determine whether their investments are yielding returns. It’s essential to generate operating income and revenue through transformation efforts.

A common issue is that many technologists lack business acumen, and many business leaders lack technical knowledge. Bridging this gap is crucial, especially for the youth. The future of digital transformation lies in blending business and technology skills. With data and AI, these skills become even more relevant.

It’s important to emphasize that having the right mindset drives skill development. With the right mindset, anyone can learn new technologies, including Gen AI algorithms. Without the right mindset, no amount of technical expertise will be sufficient.

Successful transformation involves navigating skill sets with a focus on the art of the possible while balancing it with feasibility. Companies that will thrive are those that foster a culture of innovation and balance, focusing on both potential and practicality.

TAM: What are some of the most exciting trends in digital innovation that you believe will have a transformative impact on businesses worldwide in the coming years? How can organisations identify and leverage emerging technologies to drive business value?

Sanjib Sahoo: The mistake organizations make is trying to create an AI story first and then fit their business into it. Instead, they should start with their business needs because every business is different. They should see how AI can leverage their unique capabilities. It’s important to understand that AI is meaningless without good data. Therefore, organizations need to focus on how to leverage better data to make meaningful insights. Unstructured or poor-quality data will result in subpar AI performance. The adage “where data goes, AI flows” is crucial here.

The first step is to focus on data quality. This involves rationalizing systems, extracting data from ERPs and other systems, and creating a unified data lake. The architecture of data management—read/write data, measurement, and a solid data framework—is vital for any organization moving forward.

Secondly, integrating AI into the mainstream operations of the business is key. AI should be part of everyday processes, not just an add-on for specific tasks like warehouse picking. This means creating a system where operational data, transactional data, and AI data all communicate seamlessly. Achieving this requires adequate compute storage, GPUs, and an asynchronous architecture to handle processing power efficiently.

Creating a personalized customer experience with AI is another critical aspect. Today, customers don’t have time to sift through noise. AI should provide highly customized experiences. Additionally, ecosystems will become more important than standalone platforms. Users want seamless integration of technology without having to manage multiple systems. As value chains merge to create unified customer experiences, the differentiation of organizations will not be about their infrastructure but rather about their unique strengths and their ability to collaborate effectively.

With the advent of data and cloud technologies, entering a business is easier, but the cost to differentiate is higher. Therefore, businesses must focus on what makes them unique and prioritize the customer experience. Despite the hype, more than 80% of digital transformations fail. With around $2.5 trillion spent on digital transformation, this means about $1.9 trillion in failed investments, comparable to the GDP of some of the world’s largest economies.

To reduce these failures, the focus should be on use cases, mindset, and bringing the right cadence to digital initiatives. Building a “learn-operate” model is essential for successful transformation. Digital transformation should become part of the organization’s DNA, a continuous process rather than a one-time project.

The best digital transformation is one that becomes so ingrained in the organization that it no longer needs to be explicitly discussed. Just like maintaining good health is a lifestyle choice, digital transformation should be a continuous journey. Organizations should learn to live and operate with ongoing transformation, making it a natural part of their business model.