Digital transformation services are radically reshaping industries. Companies are eager to pursue drastic methods to attain the benefits of recent trends to keep up with their competitors. Technology is ever-changing. However, this time, the change is happening at a much faster pace than before.
There is also the risk of disruption impetus for this transformation, and the risk is real. It is only obvious that new technologies are a threat to the established businesses, but there are unprecedented opportunities too.
In fact, more and more business executives are now concerned about the missing opportunities rather than being in the side-line. Digital disruption is not the main concern to propelling companies, the digital Fear of Missing Out (FOMO) is also the truth.
Despite the changes, the narrow viewpoint also persists. However, digital transformation cannot be categorised as monolithic. There are several dimensions of the concept, including different models. Businesses mainly focus on organisational transformation or process but fail to address the multi-dimensional nature of digital transformation.
Likewise, many organisations also believe that, the digital transformation begins with organisational and/or cultural change. While it is important to ensure that an organisation is more agile, digital, and innovative, but pursuing initiatives to business transformation is equally important.
Defining Digital Transformation
Digital transformation is the incorporation of digital technology into various areas of the business to change the fundamental operations and deliver value to end-users. It involves a cultural change for which organisations must repeatedly challenge the status quo, try new things, experiment, and yet be equipped to accept failures.
There is a plethora of definitions, articles, and columns on digital transformation. As a result, confusion arises. For example, eminent author Greg Verdino states that digital transformation closes the gap between what digital customers expect and what analogue businesses actually deliver.
The Agile Elephants’ definition affirms that digital transformation involves a change in leadership, different thinking, the encouragement of innovation and new business models, incorporating digitisation of assets and increased use of technology to improve the experience of your organisation’s employees, customers, suppliers, partners, and stakeholders.
Wikipedia gives a vague yet touching definition of digital transformation as the change associated with the application of digital technology in all aspects of human society. Today, digital transformation is indeed an imperative for businesses, no matter whether they are small or major enterprises.
Why Digital Transformation Matters?
Digital transformation as a survival issue for businesses
As defined by Howard King in an article published in The Guardian, Businesses don’t transform by choice because it is expensive and risky. Businesses go through transformation when they have failed to evolve.
Enterprise leaders have read the signal and they are working on it. According to the Worldwide Semi-annual Digital Transformation Spending Guide, IDC forecasts worldwide expenditure on technologies and related services enabling digital transformation shall reach +ACQ-1.97 trillion by 2022. IDC further predicts that expenditure on digital transformation is likely to grow steadily to achieve a five-year compound annual rate of growth of 16.7+ACU between 2017 and 2022. That’s more than enough to consider this revolutionary evolution.
Digital Transformation Key Elements -9 Courses
There are nine important elements that define the course of digital transformation. But, it all starts with the three building blocks of a customer experience transformation.
Transforming Customer Experience
Companies are taking advantage of previous investments, buying history and searches, to understand customers better. Companies are also prepared to promote their brands effectively online, through social media and building online communities to promote client loyalty. Some other companies are trying analytics-based experiments that drive customer behaviour.
In-person Digital Conversions
Companies are adapting technology to promote top-line growth. For instance, insurance companies are coming up with mobile tools to assist salespeople and help them engage in analytics-based planning. Likewise, the medical device sales force is fast adapting digital interactions instead of in-person interactions. Businesses are integrating the history of customers’ purchase data to provide a personalised experience.
Customer Touch Points
Digital initiatives can enhance customer service. For instance, banks are creating their Twitter accounts to connect with clients and address their complaints quickly which is a great initiative to deliver prompt service. This kind of digital initiatives leverage expert communities and allow crowdsourcing with other customers and employees.
Multi-channel businesses are experiencing great pressure to provide integrated customer service. Other companies are working on self-service through digital tools. Overall, businesses are now focusing on a radical change through corrective and cohesive customer service.
While changes in customer experiences are visible, it is equally important to transform the internal processes or operations.
Automated processes enable businesses to focus their team on strategic goals. It also allows researchers to emphasise on creativity and innovation instead of repetitive efforts.
Employees are now empowered with the choice of working from home and not being assigned a desk. Tools virtualising individual work are powerful for knowledge sharing and enabling people to prosper by gaining access to a global view.
Digital transformation has a tremendous impact on performance. It gives deeper insights into regions, products, services, and customers, thereby allowing real data-based decisions. This is a reality in internal processes as well as customer-facing processes. Besides being well informed, the process is also changing strategic decision making.
Business Model Transformation
Companies are not just changing their ways of functioning, but also redefining the interaction and evolving activities and boundaries for a business.
Modified Business Modules
Companies are now looking for ways to expand physical and digital offerings using digital media to share their content across silos. For instance, a national post office is coming up with a free digital mailbox for each physical mailing address that companies could substitute for the physical mailbox of an individual.
New Digital Products
Companies are also coming up with new digital products complementing traditional products. For instance, sports apparel a manufacturer selling digital devices, activity trackers, and GPS enabled watches make a relevant combo. Likewise, companies are changing, and reshaping their internal boundaries in this process of evolution.
Businesses are transforming from a multinational unit to a global operation unit. Digital technology combined with integrated information allows businesses to leverage global synergy and remain locally responsive at the same time. Globally shared services are relatively more efficient with lesser risk factors. They may also promote global flexibility.
Digital transformation services are in demand. It requires strong leadership, persistence, and perseverance to drive this change. It also requires the correct vision to bring a transformation. We encourage you to stay focussed, and then take a thorough/well-examined approach to introduce a change into your business with one step at a time.