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It is a phrase that gets thrown around a lot, but what is the definition of digital transformation? Digital transformation is the process of utilising new technology to create new business processes that can transcend over all your company departments to meet your changing business and industry needs.
"It is not the strongest of the species that survive, nor the most intelligent that survives. It is the one that is the most adaptable to change." Charles Darwin
As part of your digital transformation you need to reimagine how you engage with your customers across sales, marking and customer service; and therefore, how your business operates overall.
It's crazy to think that it wasn't that long ago that your contacts would have only been stored in a desk top rolodex but now you have the chance to future proof your business, because post-it notes or even spreadsheets just aren't going to provide you with longevity you need to maintain and grow a business in the 2020 and beyond.
So, let's take a look at the types of transformation available…
There are four types of digital transformation; business process, business model, organisational and domain. The mistake some businesses make is to only focus on process and/or organisational transformation; which means that as a company you are not accessing your full potential.
Recognising and exploring the opportunities new technology can offer, in a multi-dimensional way will allow you to get the most out of your digital transformation. Below we discuss the four types of transformation:
A great success story of process transformation is when Domino's Pizza performed a complete overhaul on their food ordering system. Dominos' AnyWare allows customers to order their food from anywhere, off any device. This transformation meant they put the convenience of the customer first. Sales skyrocketed and in the US Dominos' overtook Pizza Hut!
From data to analytics and API's to machine learning, technology can offer you new ways to transform your processes across all departments and add value right across your organisation. Consequently, this will lower your costs, increase productivity and help to eliminate human error.
Examples of companies who have pursued transformation of a traditional business model are; Uber and Netflix. Uber reinvented the taxi industry and Netflix in the way tv/film is distributed. Fundamentally, business model transformation reinvents the way in which value is delivered in your industry. This is no small undertaking and will heavily rely on the leadership of a strategy team. Often this will be delivered alongside the traditional business operations so as not to cause disruption. Business Model Transformation can offer a company significant opportunity to grow.
To undertake a full digital transformation you will be required to redefine your companies mindset; an example of this is Experian. As a consumer credit agency, they reinvented their organisation by driving a major change in their employee focus from equipment to data, across the company. They made it compulsory for their staff to adopt digital workflow practises, but by doing this they were able to demonstrate the value of digital transformation.
Domain Transformation can offer huge opportunity but often is an area businesses do not focus on. Many companies do not realise that new technology can open up entirely new business directions for their company. Take Amazon, they expanded into a new market with the launch of Amazon Web. In an area which was formally dominated by Microsoft and IBM, Amazon Web is now the largest cloud computing/infrastructure service in this field.
Amazon Web Service is not an add on to Amazon, it is an entirely different company but collectively it represents 60% of Amazon's annual profit.
As Benjamin Franklin said, "If you fail to plan, you a planning to fail." Pursuing digital transformation might not be quite on the same level as forming the constitution of the United States; but the saying couldn't be more correct. Building a strategy to ensure a successful digital transformation to support your long-term goal is vital.
Whilst different organisations or companies will have their own individual goals within this transformation, there are certain objectives that should remain in focus for everyone:
Before you even start planning your digital transformation it is vital that you review, analyse and evaluate the processes, policies and habits of each department your transformation will affect. You need to have a clear view of what each departments problems are and challenges they face before you can solve them. The next step is to perform a similar evaluation of your business 'as a whole' to identify the overall aims for your transformation.
Knowing your organisations current situation and being able to evaluate it with honesty and transparency will provide you with the insight you need. Understanding where you are now, where you want to be and recognising those steps that might form part of your transformation, will provide you with a good foundation to start to plan your project.
From the project team, to management, to the wider employee body; communicating and making everyone feel like they are fully informed is key. Ensuring that your team can identify and overcome any challenges that may arise will help to keep your project on track. If each person has a thorough understanding of their role, along with all the necessary information to fulfil their tasks and has clear sight of the targets in place, your project should avoid any obstacles. All this is achieved with great communication, so make it your top priority.
Your digital transformation is going to take time and you may encounter problems that mean you have to adapt your plan. Ensuring you keep your long-term goal in sight through each stage and approach challenges with care and consideration should keep your project on track. Just like in the fable 'The Tortoise and The Hare'; sometimes those that are slow, consistent and show continuity win the race in the end.
Change is hard for everyone and you are bound to come up against resistance; that's why it's important to be as transparent and some great advice is to listen twice as much as you talk.
Start at the top with your C-level executives and ensure they fully understand both the immediate and long-term positive benefits of a digital transformation. Providing examples of case studies where a transformation has been successful will also help to explain your vision. Once they are onboard, they will become crucial in selling your transformation to those that will use your new technology the most.
Change Management should be ongoing throughout your transformation. There will be alterations that need to be made or challenges that cause setbacks, and they need to be managed to ensure they don't cause delays overall. This will help you to keep in control of your important target dates.
When your digital transformation is coming towards the end you need to allow for a period of adjustment. Your employees across all departments involved will require training and you customers or suppliers may need time to engage with your new technology. If your Change Management has been successful, when you get to this transition phase you should have plenty of time for your users to embrace and feel confident with their new technology.
Deciding which technology provider to team up with is a huge decision, as you need a partner that will guide you along the steep learning curve that is your transformation. A good partner will offer insight from their previous experiences, as well as guide you in terms of timelines and project goals. Your partner should provide your team with training and support which will help to ensure your new technology is embraced across all departments.
Embarking upon a digital transformation is an exciting concept. New digital technologies connect people and machines to enable businesses to deliver a service that wasn't even imaginable back in the age of the rolodex. Finding the right transformation for your business and investing in it will not only revolutionise the way you operate, it will future proof your company.
Sara Evans is a Marketing Executive at PragmatiQ Solutions and regularly shares expert opinions around the technology industry, marketing, team collaboration and more. Day-to-day, Sara stays up to date with the latest digital trends which she also enjoys reading about in her own time.
