Digital transformation is more important than ever in industries today, from small to large businesses. The more digital you are and the faster your business can adapt to new technologies, the more relevant and competitive you will be.
However, many business leaders are unaware of what digital transformation entails. Is this just a fancy way of saying "move everything to the cloud" or something else entirely? Is there a specific process we must follow, or do we need to create new positions and then hire a consulting service to assist us in developing a customised framework for digital transformation?
In today's blog, we hope to provide clarity for anyone who reads this blog by answering some of the most frequently asked questions about digital transformation. So, if you're interested in learning more about digital transformation, keep reading.
In layman's terms, a breakdown of digital transformation.
One point that must be made clear to businesses is that digital transformation is not a one-size-fits-all solution. It can be difficult to pinpoint an exact definition because your digital transformation will look different compared to another company in a different industry, depending on the industry and the service they provide. However, for the purposes of definition, we could say that digital transformation is when digital technology is used in all parts of a business, changing how businesses work and how customers get value from them.
Going beyond the definition, there are times when a cultural shift within the organisation is required in order for them to constantly continue to grow, challenge, and experiment with the status quo, sometimes while being comfortable with failures along the way. For older companies, there may be times when they must abandon long-standing business processes that have become ingrained in their DNA.
A problem statement should always be the starting point for any digital transformation project.
When it comes to digital transformation, the first question you and your company should ask is, "Why?" The why is important because it defines and directs where your digital transformation can begin and what framework to employ. Examples of "why" include wanting to improve your customer experience, reducing friction, increasing productivity, or simply increasing profitability. If this is what you and your company want, it could be about taking your business to the next level by using and allowing your company to use digital technologies that weren't around many years ago.
As the owner of your company, you should be fully aware of how the world is changing and understand what the phrase "digital transformation" means in your company and its culture—whether you work in finance, agriculture, pharmaceuticals, or retail.
But why is digital transformation important?
Many businesses that have been in operation for many years have opted for digital transformation in today's digital and modern world. There could be several reasons for this, the most likely being: "If you don't, you won't survive."
Even after the recent pandemic that has been going on for a long time, a company's ability to quickly change their business chains, deal with all market pressure, and quickly adapt to changing customer expectations is very important.
Predictions of long-term changes in consumer behaviour from actual to digital as a result of the pandemic are coming true, as digital has been accelerating in almost all categories and industries. Streaming, online fitness, and food continue to be the most significant changes. On the B2B side, even though remote selling has slowed as businesses reopen, it continues to work as consumers have discovered the convenience in recent years.
Enhancing the customer experience has become a major goal – and thus a major component – of digital transformation. Client satisfaction will always be the most important factor in how well a business does.
How can I calculate the return on investment in digital transformation for my company?
To demonstrate the success of your company's digital transformation efforts, you must quantify the return on investment. That is easier said than done, however, because your digital transformation may affect multiple functions, departments, and even how your company interacts with its customers and employees.
Though it is difficult, quantifying its success is critical to its continued investment. This is because simply introducing and implementing technology isn't enough; KPIs (key performance indicators) must be established to allow you to track its effectiveness.
When assessing how well your digital transformation investments are performing, it is always best to take a holistic approach rather than a project-by-project basis. This is important to remember so that the failure of one project does not undermine all of your and your company's efforts toward digital transformation. When done this way, it also makes you more willing to take on more risks as you move forward on your digital transformation journey.
Other best practises for digital transformation should be considered as well. Among them are:
- Prioritize initial metrics.
- Develop metrics for experiments that you want to conduct in order to learn and adjust within your company.
- Finally, align your digital transformation with business outcomes: this could range from operational impact to cost impact to strategic impact.
Great! So, how can my company and I get started on the path to digital transformation?
Don't worry if all of this makes you feel hopelessly behind. Digital transformation is a huge undertaking, especially for larger, more established companies. When done correctly, it will result in a business that is more responsive to customer demands and more resilient in the fast-paced digital future.
You can email us at firstname.lastname@example.org for more insights and wisdom on digital transformation, or call us at +61 2 9089 8875 to schedule a FREE consultation about your business.
|Con M | Digital Marketing Manager|
Net Fusion Technology | Masters of Marketing Communications