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 email@example.com 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
Want to outsource some of your business functions but are afraid that it will affect the quality of the work? Today, we will explain to you why you should never fear outsourcing.
What exactly is outsourcing some people may ask? Well, in definition, it is the practice of using third-party agencies to do the work that may have been done within the company before. It can be divided into three types of outsourcing - near-shore outsourcing, onshore outsourcing, and offshore outsourcing.
Fear of outsourcing exists because the company relinquishes direct control it has over the task by outsourcing. This uncertainty in the minds of the business owners and this fear is not unfounded. However, the benefits of outsourcing are too many to ignore. The solution to these fears is finding a reliable outsourcing vendor and making service levels agreements. These agreements include the level of service expected, the metrics to be used to measure this level, and the course of action if the levels are not achieved.
The reasons a company may outsource are many, some of them are:
Some businesses may want to focus on their core business competencies as they may not have the knowledge and infrastructure to perform that business function in-house. Sometimes they may not wish to hire new staff especially for project-based jobs. Functions such as customer service, software development, and web development and design are amongst services that are often outsourced.
Outsourcing gives you access to experts that are highly competent at lower labor costs.
Small business owners that have limited staff and infrastructure can outsource as well,as they can also outsource customer service, website management, and accounting to focus on R&D and also reduce costs that may be associated with hiring a full-time employee.
When bigger companies choose to outsource, however, their outsourcing initiatives come with a different goal to accomplish. A company wanting to gain a time zone-based advantage can utilise offshore outsourcing for customer services and can have 24-hour customer support.
What you outsource depends on your key business activity. What you decide to outsource can be someone’s key competency and vice versa.
Outsourcing may have a bad reputation because people believe that the work is done by people who do not have a direct stake in the organisation and at a low cost. However, that is not the case, companies that provide outsourcing services are experts with their reputation to protect and there are many other safeguards.
So you should not hesitate to give outsourcing a chance and prepare to grow your business in Sydney with the time and resources that you have freed up doing so.
If you have a business and you plan to create your own website or redesign your existing website, keep in mind that the decision should be made strategically. It can be rough, even risky. Especially with many freelance designers out there promising an instant online presence and number one rankings.
Luckily, we are here to help with suggestions on what to look for when you are in the market for an agency.
This is the very first thing that needs to be done when you look for a web design agency. A well established trusted agency has impressive client website designs that you can look at and even browse through. An agency that is proud to share their portfolio shows confidence in their success and ensures that they can complete your website if you choose to go with them for your website.
In today’s digital age there are plenty of good web design agencies out there. However, not all agencies have the skill sets or the expertise to match your business needs and requirements. Set a goal to find an agency that has many expertises in various areas in website design and development, SEO and in digital marketing.
Set an appointment with agencies that you think fits what you are looking for and gauge their levels of expertises on important areas that you think your website needs. Whether it be an online store or just a redesign to make your current website more responsive.
With the world full of businesses competing to grow their own business, checking out a website’s credibility is important. From testimonials, certifications, awards and recognitions is one way of checking out the credibility of a web design company.
Before making the final decision, spend time consulting some of these elements, not being afraid of getting references from their previous clients. You will need to know their experience working with companies like yours, and if their customers are happy with their professional website, providing highly recommended testimonials about their experience.
This is the part where other website design companies fail, as they do not properly explain what their design process is. Ask your desired design company how their design process entails, if they know how to incorporate the design to be a responsive website, and if it is easy to connect it to your social media channels.
One of the things to ask when choosing your website design and development website is how they support and maintain their websites once they have been designed and launched. A website should never be stagnant. They should be able to keep up to date with the different trends in digital marketing, such as making the website responsive for other devices and how they expect to increase the loading time of the website.
Make sure that whatever website design and development agency you decide on, they will help you grow your business and provide any support and maintenance you require.
Lastly, one of the most important factors to consider that all business owners should look out for is the pricing of the website design agency. Take your time comparing website design and web development agencies to see the differences in pricing, inclusions and payment plans that they provide. Some agencies provide 50% down payment while others prefer end of project payment releasing your website only after the payment has been confirmed.
If you are down to your last two agencies and one is cheaper than the other, look at why the price is lower. There is a lot to consider when it comes to selecting the right agency, so you don’t want to make a decision on a rush without all the necessary information. When you take your time and take note of all the factors, including the pricing, you will be able to make an informed decision that is the best for you and your business.