52% of global GDP will be driven by “digitally transformed” enterprises by 2023. Digital business transformation is essential for the longevity of your company. But what exactly is it and how can you best implement a successful strategy for your business?
Here’s a rundown on digital business transformation: what it is, why it’s important, and the 5 steps that will put you closer to a successful digital transformation.
What Is Digital Transformation?
Digital transformation describes the integration of digital technology into all areas of a company, altering how that company operates and delivers value to its customers. Digital transformation is also a cultural change that requires businesses to experiment, challenge the status quo, and be able to roll with failure.
In a nutshell, digital transformation is the way a business betters and redefines itself using digital technologies. It requires continuous evolution and redefines how an organization undertakes its customer experience and business operations to design a business that’s stronger and more agile than it was previously.
Why Is Digital Transformation Important?
A company may take on digital transformation for a number of reasons, however, by far, the most likely of those is that you have to: it’s a matter of survival. The post-covid world has made a business’ ability to adapt quickly to time to market pressures, supply chain disruptions, and rapidly evolving customer expectations critical.
It’s not just that digital transformation is a nice-to-have, it’s the only way a business can operate in an ever-more-digital-focused world. It ensures a business is flexible and agile enough to weather severe changes in circumstance and gives businesses the power to meet consumer expectations like never before.
It’s All About The Talent
A digital transformation process isn’t a copy/paste job. Each organization is different so its digital transformation efforts will be too. A successful digital transformation relies heavily on who is managing and executing the change program. An organization-wide digital transformation effort also relies on having the right talent across the company.
This can be a challenge for businesses whose staff haven’t kept up with digital trends. A digital transformation relies on people being familiar with a digital ethos – being comfortable with change and open to upskilling.
When hiring talent for a digitally transformed work environment, you have to focus on personnel who can adapt according to the organization’s needs. They need to be comfortable with learning new processes and will actively pursue efficiencies in their day-to-day tasks. Being digitally savvy is a plus, but not a requirement. It’s the capacity for evolution that’s important.
Digital Transformation: Step-By-Step
Now you know what digital transformation is and why it’s so essential, here are 5 steps you can take to get started.
1. Lockdown your business’ vision
Before you dive right into digital business transformation you have to plan the experience you’re looking to provide. This might involve asking the following:
- Where are the holes in my company?
- How can I use technology to better support my workers?
- What challenges do my team undertake when they’re engaging in day-to-day organizational processes?
Clearing up your goals and what you want to address will ensure your digital business transformation strategy succeeds. That said, you also need to plan for how digital business transformation will change the way you interact with your users or customers. This might involve questions like:
- What experiences do I want my customers to have?
- How can these plans help me meet my customers’ changing expectations and needs?
Once you have the answers to these questions you’ll be in a much better position to roll out your digital transformation smoothly.
2. Involve leaders
No organizational process runs smoothly without great leadership. This is where it’s essential that you involve the right leaders in the digital business transformation undertaking.
In fact, studies show that businesses that engage a chief digital officer to support their digital transformations are 1.6 times more likely to succeed in their efforts than those that don’t. Having the right leaders on staff and operating your transformation efforts is essential. It can very easily mean the difference between the success and failure of your digital transformation initiative.
3. Don’t overlook culture
If you want to engage in an effective digital transformation strategy, you must consciously evolve a culture that facilitates digital innovation.
Making sure your leadership is on point is great, but you can’t rest there. You have to ensure everyone in your company understands the vision you’re striving for. This means everyone on your team must know why your digitization efforts are essential.
Once everyone is on the same page, you’ll be able to more effectively strategize and direct your efforts towards a more holistic digital business transformation.
4. Gather expertise and resources
Digital transformation, like any organizational restructure, requires the right expertise and a dedicated team of employees to keep your company on track. There are a number of avenues you can take to assemble this team:
- You’re able to select people from within your own company
- You’re able to outsource the work
- You’re able to work with a technology partner
There are some specific talents you ought to look for when choosing to work with this team. They have to be open to learning about new technologies, be receptive to new ideas, and be willing to adapt to the business as it continues to evolve.
5. Employ the most effective technology
There are a number of platforms, solutions, and vendors that can help you achieve your digital business transformation goals. What you need to do as the business in question is ensure you’re properly vetting whatever technology you choose to implement. Choose the wrong one and you’re wasting money and time and potentially risking digital burnout.
When choosing new technology, you should ask yourself two questions:
- Does the technology align with your digital business transformation strategy?
- Does it fill a hole in your company?
If you answer yes to both these questions, odds are the technology you’re vetting will be an important part of your digital business transformation.
Transform Your Business Today
Digital transformation won’t happen overnight, but with the right approach and an effective strategy, your business will be on a better footing to succeed in the future.
Now you know everything there is to know about digital business transformation!
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