It is tough running a business, which is an amalgamation of different decisions over time regarding investment, service innovation, and technical excellence. Components of digital transformation is not just about technological implementation, but an organizational change at the intersection of technology, business, and people, such reflection must account for countless possibilities.
According to a survey, 89% of enterprises have either plans to adopt or have already taken a digital-first business strategy with Services (95%), Financial Services (93%) and Healthcare (92%) leading all industries. Education, high-tech, manufacturing, retail, and government are frontrunners in implementing digital-first strategies to improve process efficiencies as well as exceed customer expectations.
Digital transformation is a consistent journey. Reaching one stage or milestone is often connecting layer to next step.
Digital transformation consulting will help you leverage emerging technologies, adapt to changing consumer preferences, and adjust to a competitive market. These qualities ultimately will help to innovate. The mandate is bright enterprises must either adapt to survive or be left behind in the race of excellence.
Understanding the difference between digitalization versus digital transformation
A lot of people mistakenly interchange digital transformation with technology. It does undoubtedly include technology combined with emerging digital capabilities affecting all areas of the business. But it is essential to understand that the change is not just about the technology itself but also implementation and leadership.
However, before you leap to the next level, it is essential to understand that there is a significant distinction between digitalization and digital transformation. Digitalization is all about modernizing existing processes and systems and applying new technology for optimum results. For instance, a bank developing an app to scan cheque and pay into your account is an example of digitalization.
Digital transformation is about completely turning around business operations with new technological innovations. Digital transformation has radically shifted from the phase of strategy to execution in the majority of businesses across the globe.
Before you take a plunge into digital transformation, it is essential to answer a few questions. What is the role of your business in improving the lives of people? What can you do to achieve significance and add more value to your lives? The answer to these questions will form the basis and a roadmap for your transformation strategy. Equally important is to understand consumer behaviors and expectations.
Remember, the key to enterprise technology services is to achieve what people expect, rather than provide solutions that are easily achievable.
Enterprise Digital Transformation Strategy: Key to Success
Digital transformation requires significant investment in people, processes, and products. It should be noted that the most vital performance metric is the impact on customer experience — which translates into increased retention and revenue.
Successful digital transformation is not just about digitalization, but mainly about empowering people. After all, people play a critical role in changing the organization. Is your digital transformation initiative strong enough to enable people to streamline processes and quicken time to market? First, clearly define a strategy and then clearly define roles. Without the right people and the right actionable, digital transformation will fizzle out as another siloed initiative.
The next most obvious step should be geared towards incorporating technology needed to improve user experience. Product enhancement is the natural step in building user experience, leading to digital transformation. The big question is, how will your product grow and evolve? In such a scenario, investing in tools and technologies to improve customer experience initiatives is essential rather than relying on real-time data.
This is a critical aspect of digital transformation.
Customers expect a highly contextual and personalized experience, and to provide that, enterprises need a holistic and a 360-degree view of the customer. Data platforms offer a secure, singular view of the customer in real-time, providing insights into every customer interaction across several different touchpoints so customer experiences can be truly personalized.
IT drives digital transformation. Keep in mind that the impact on customer experience should be the sole reason driving your process. Digital transformation happens across the enterprise over some time. Focus on areas that will help you achieve the most significant impact and a high probability of success. Customize a process to make sense for your enterprise.
Build a Solution around new technology
Digital transformation is not just about technology change. Instead, it is about attaining business objectives and building a better customer experience. Digital transformation initiatives typically involve cloud computing platforms, DevOps and agile development approaches, and emerging technologies like big data analytics, AI, virtual reality (VR), augmented reality (AR), and IoT devices.
What are the most critical elements in the digital transformation initiatives
Digital transformation is the application of technology to improve performance radically. Business people in all industries are adopting digital approaches such as analytics, versatility, social media, and smart rooted devices, as well as enhancing their use of technologies such as ERP, to change customer relationships, in-house processes, and utility propositions.
A. Data Assimilation
Most corporations are not maximizing their value of data because it isn’t built around the customer. Companies don’t create to make customers’ lives more comfortable and more trustworthy; they grow to make their lives more comfortable and better. These organizations will not exist in the next few years if they continue doing so.
B. Integrated Approach
Companies operate across diverse, complex technical systems, so a combined strategy is necessary when viewing digital transformation.
Your customers don’t merely interact with you once but within multiple touchpoints across the customer journey, where each of them requiring their system and methods. You may administer marketing ventures in one order, control customer inquiries in another, and preserve their data in another system.
These days, customers demand the process to function as placidly as possible. Consequently, the more you can automate and enhance every step in the value chain, the better your customers and staff experience.
C. Security and privacy
Security and privacy have to be regarded as thoughtfully. As technology such as AI becomes further commonplace, firms will need to improve it with a code of ethics.
It feels pleasant when an experience is corporeal because most skills are not. Companies often hold no idea who we are, what we want, or what we’ve acquired from them in the past. If a company recognizes them better, they will win.
E. Performance Management
Transactional systems provide executives extended in-depth insights into products, regions, and consumers, enabling choices to be made on real data and not on hypotheses. This is occurring in both internal processes and customer-facing processes.
Digital Transformation Trends to Watch Out
Cloud adoption is increasing at a rapid pace. But the increase is also bringing about growing pain areas. In some cases, moving to a public cloud, private cloud, or data center is not always feasible. And several companies have started to realize the fact. It is essential to maintain a healthy mix of all. Connected clouds continue to evolve and meet companies’ changing needs—be it cloud-sourced storage, networking, security, or app deployment.
Voluminous data and actionable insights are the key to companies allowing effective decision making about products, services, employees, and more. With a plethora of companies leading the way in promoting data to provide meaningful business analytics, data-driven organizations have much to do. It is all about realizing the power of the data and the data being collected.
With improved processing power, enterprises and leading decision-makers will invest heavily in making more of their data, and this will be done with machine learning and AI.
Virtual assistants are becoming the norm. Companies are identifying ways to add AI into their programs to simplify life for employees and consumers. AI assistants are embedded seamlessly everywhere, whether computer systems, platforms, applications, or software. Companies are using chatbots to facilitate customer service. AI power will top the list to watch out in the coming years for digital transformation.
Importance of Digital Transformation
Fifteen years ago, there was nothing that mentioned a threat to brick and mortar stores. Their future looked bright and hopeful. Amazon was just an online bookstore with modest sales numbers in 2005. Now it is worth higher than all significant brick & mortar stores in the United States fused together.
While all of the registered retail stores observed a loss in value, going as dramatic as -86-96 %, Amazon’s business was only thriving. It has gained 1,934 % in value and went straight to one of the world’s most valuable companies.
There is also another side to the story. Some stories serve as cautionary tales. Take Kodak, a company that wasted every digital opportunity it had. It was a Kodak engineer who designed a digital camera back in the year 1975. And their initial response was that it would be a threat to their primary business – film.
Rather than seeing the bigger picture, that they are in the storytelling business, Kodak assumed they would be able to capture the new technology with a solid marketing strategy. The puzzle with Kodak was that they missed to go digital; their predicament was not being agile enough to adapt to the digital age and the new demands of their customers.
Remember, digital transformation is not a standalone process, rather an integral part of business strategy. The process behind digital transformation must be carefully planned with both mature and emerging technologies, the skillset of your people to implement transformation initiatives, and the acceptance levels of customers to undergo and experience changes.