As the world becomes more connected, businesses are facing a new era of digitization. Digital transformation is ubiquitous, a process that uses digital technologies to change or update business processes, systems, and customer experiences to keep up with changing market conditions.
To understand digital transformation is to take a big picture snapshot of a business. It is a process that transcends typical organizational roles like sales, marketing, and customer service to reimagine and redefine the business. It is the evolution from analog to digital, from paper to spreadsheets to apps to disrupt how business is done.
Steps In A Digital Transformation
1. Define The Problem And Be Clear About Priorities
In pursuit of digital transformation, businesses have an opportunity to examine current and legacy processes and reinvent them with digital tools. By spending time with employees from different departments, a business can get a holistic idea about the challenges and problems of existing processes. While personalization of customer experience leads to more customer loyalty and retention that is just the tip of the iceberg of digital transformation.
In preparation for digitization, businesses need to consider employee experience and harness the power of Artificial Intelligence (AI) and automation for true digital transformation. As those priorities are set, the business can outline the metrics of what successful digital transformation entails.
2. Outline Metrics Of Successful Digital Transformation
Once the business has identified which problems to tackle with digital transformation, it must set the metrics of what a successful digital transformation will look like for the organization. This depends on the goals of an organization and the scope of the digital transformation.
For some businesses, digital transformation will be limited to:
– New business unit
– Product line
For other businesses, digital transformation becomes an enterprise-wide initiative that delivers positive results over time. Often, digital transformation is a lengthy process that happens over years with cumulative results. Therefore, any digital transformation initiatives needs to show progress metrics over time.
3. Designate A Leader, Promote Company-Wide Buy-In
The foundation for success in digital transformation is picking the right people in the business to share the “big picture” vision for the initiative. The business needs to pick a leader, ideally from the C-suite that will oversee the initiative. It is also imperative that individuals across the organization are educated in the benefits of digital transformation. For some business departments, immediate gains of digital transformation may not be tangible. Therefore, the leader needs to instill confidence and a timeline across the organization for digital transformation.
4. Embrace Flexibility
For most businesses, the road to digital transformation is filled with uncertainty. That is why it is important to embrace flexibility in the process.
– shifting market dynamics
– new trends in customer behaviors
– disruptive competitors
– advancements in AI technology
By encouraging employees to share about difficulties and project fluctuations, the business ensures its survival and thriving in the face of change.
5. Carefully Choose Digital Transformation Tools
Optimal digital transformation happens when the right mix of people, processes, and technologies comes together to innovate a business. A business must choose the right digital transformation tools or software. As part of the set-up, a business needs to consider whether to rely on a single vendor or multiple vendors for a solution. Other considerations include utilizing a digital transformation software that is new on the market or a tried-and-true solution. These decisions become integral in executing a digital transformation that is right for the business.
What Technologies Are Used In A Digital Transformation
Fundamentally, digital transformation is driven by advancements in technologies that disrupt business practices. These technologies may include
- Natural Language Processing (NLP)
- Text Analytics
- Robotic Process Automation (RPA)
- Content Transformation
Content Transformation Example
Likewise, content transformation is at the core of a successful digital transformation. This is because content plays a critical role in the digital customer experience. A business cannot achieve digital transformation without looking at the content. The goal of content transformation is to make relevant and engaging content accessible to customers anywhere at any time. When a business chooses the right solution to transform legacy content into digital content it enhances business operations. Optimized content serves as a sales and marketing tool for attracting customers and positioning the business in the marketplace.
Digital Transformation Benefits
Once a business has taken the steps to digital transformation it can experience the benefits. Some benefits will be more immediate than others. However, in modern business digital transformation has become more of a requirement than an option for being competitive.
Digital transformation benefits include:
Optimized For Mobile
These days customers spend a lot of time online but the way that they hang out online has changed. Increasingly, customers are tied to smartphones. Businesses need to reflect these trends with increased mobility. A focus on the end-user experience with mobile platforms is the way to:
o Enhance operational efficiencies
o Improve satisfaction rates
o Retain customers
o Learn about customer behavior
o Attract new customers
An effective digital transformation strategy is committed to data security. Businesses need to protect user-information collected from connected devices and big data. These large quantities of sensitive information may be subject to privacy laws which need to be considered in the transformation. A business that has secure data policies in place gives confidence and consideration to customers who share sensitive information online.
Better User Experience
Part of successful digital transformation includes consideration for user experience as well as customer experience. As more work tasks are being automated, users are becoming more discerning about technology. The business needs to focus on simple interfaces and intuitive interactions to make work easier for employees. In return, employees are more productive and engaged in the workplace.
Digitization Of Customer Experience
At the core of digital transformation is a technology and the purpose of this initiative is an enhanced customer experience. In an increasingly competitive marketplace, the leverage of digital technology is the key to:
– better decision-making
– smarter efficiencies
– paradigm shift in customer experience
– Efficient processes
– Greater productivity
– Better customer and employee experience
– Manage business risks
– Control and reduce costs
New Insights To Drive Business
Digital transformation disrupts business processes and creates new ways of doing business. Part of the interaction of the right processes, people, and technology is responsible for new insights for business leaders and employees. Business leaders can shape the direction and the trajectory of the business as it enters new markets and develops new product lines. Employees can be trained and up-skilled on incorporating new technologies into their tasks. Digital transformation creates a win-win for the business.
The Future Of Digital Transformation
The rapid advancement of technology has changed the way business is done. The days of analog and “pushing paper” are gone as new technologies such as RPA and content transformation emerge to drive business processes forward.
A business that embraces digital transformation is undertaking a project that will create a paradigm shift in operations. For some businesses, it is the insight into the customer experience and the opportunity for personalization that leads them to take the steps toward digital transformation. Other businesses, seek out the positive effects of digital transformation to gain a competitive advantage in the marketplace which has become increasingly hostile to obsolete business practices.
The businesses that remain flexible and vigilant about internal processes are the ones that see the most transformational results. These businesses gain new insights that breed innovation and birth new ideas and solutions. These are the businesses that push the marketplace forward, gain competitive advantage, and shape the future.
As digital transformation continues to evolve with technology, it will be exciting to see how businesses transform into the future.