Digital transformation doesn’t simply mean that your business “goes digital”. Digital transformation is a term that is thrown around and quite often it’s true meaning is lost. At the heart of it, it simply means leveraging the digital ecosystem to change how an organization operates to deliver better value to customers.
A good Digital transformation can make a business more efficient, increase revenue, and result in satisfied customers.
Digital transformation is a real concept that organizations need to leverage on. And, of course, it starts with digital technology transformation.
Digital transformation: Challenges to Expect
Using digital technology for a transformation is harder than it looks. McKinsey reported that the success of Digital transformation is just 30%. While only 16% say that Digital transformation successfully improved their business’s performance.
There are three basic challenges that come up.
Lack of Long-Term & Short-Term Strategy
An organization needs to have both long-term and short-term goals to realistically take the business through Digital transformation strategy. A study by Deloitte showed that only 15% of companies had a clear and coherent Digital transformation strategy.
Bridging the Gap
There is going to be conflict between the new and old systems. Creating a bridge and solving these gaps, without losing operational efficiency, is really important.
Technical Capabilities
Companies need to have a full-fledged IT department that understands the technology.
These exact challenges and poor implementation lead to the common question - Is Digital transformation real? But it isn't. Let's find out how.
Start with a Digital transformation Framework
To really begin a digital evolution in your organization, you need a framework. And a good framework tackles 5 aspects.
Customer experience
Operational agility
Culture and leadership
Workforce enablement
Digital technology integration
And, usually has 5 steps.
Step 1: Set your Objectives
These objectives depend on the organization and the strategic vision. Analyze your industry, know your competitors and assess the standard practises.
Step 2: Changing the Culture
The organization’s culture needs to change and teams need to be brought on-board to support the transformation.
Step 3: Training and Support
During the change, everyone needs to be trained with the new system and constantly be given support.
Step 4: Keep Innovating
Agile innovation is critical so the innovation never stops. Creating a team responsible for innovation is important.
Step 5: Tactical Plan of Action
Create a plan of action for each step of the way and how each team will assist in the execution.
The Keys to Successful Digital transformation
So, how can an organization implement a Digital transformation successfully? There are certain key areas to work on:
Utilize digital tools and make information more accessible.
Create initiatives that loop in leaders, from high to low managers, to learn about the transformation.
Market the transformation to the employees in a way that it solves major problems.
Redefine roles and responsibilities so they align with the transformation’s goals.
Fluid communication needs to happen through traditional and digital mediums.
Empowering the Organization
A real Digital transformation strategy can only occur when employees are not passive participants. They need to take active part in the transformation and - this means empowering them.
Open Forums
Open forums are a great idea where employees speak and give their input on how digitization is executed.
Challenge the Old Ways
Encourage employees to challenge the old ways of working.
Allow Experiments
Inspire employees to experiment with technology to improve efficiency and lower costs.
The people within the organization should be given a chance to create change during the Digital transformation.
Enhance your Services
Digitization will greatly impact the way you interact with your customers.
Automation Frees up Resources
Whether it is customer service or sales, the automation tools means that employees can focus on critical tasks.
Information Available Online
With information shifted online, employees and customers can access data. From tracking ticket requests to finding help guides, people can help themselves.
Personalized Approach
Data tracking allows companies to track their customers and offer more personalized messages. This often allows an increase in sales.
Better Customer Value
Shorter customer lifecycle, more innovative products, and better user understanding results in companies offering better customer value.
Digitization greatly enhances your organization from operation efficiency to better products. The end-result is a better business.
“Rome wasn’t built in a day.”
Digital transformation is real, and it can be done. However, it can’t be done in a single day or even a month. It is an ongoing process that can help an organization make quicker and smarter decisions.
So, the only question to ask for digital technology and transformation is why hasn’t your company adopted it already?