Digital initiatives are abundant in the business world, transforming modern workplaces into digital havens.
Though introducing new initiatives can cause disruption, evaluating situations from a long term perspective paints a different picture.
Increased productivity is at the helm of change, one of the biggest incentives to embrace digital technologies.
But too often companies introduce new approaches without pre-planning. This can generate undesirable consequences, ones which can severely impact the potential for change.
It is important to do so in an interconnected world where mobile is evidently the future of business operations.
Smart devices are everywhere, I mean you can even connect your coffee machine to the internet nowadays!
If your coffee machine has a greater online presence than your company, what does that say about you?
Before we look into the importance of having a digital transformation strategy, let’s begin with a base definition as groundwork for a deep dive on the subject.
What is Digital Transformation?
Before developing a digital transformation strategy you must define the concept.
Understanding what digital transformation means will help you extract maximum benefit from your approach.
It is coined as the implementation of digital technologies across your organization, done in a way that directly benefits the customer and helps you build sustainable relationships.
By developing more efficient approaches you can add value for customers, while better understanding their needs.
Discovering innovative solutions will push your company forward, with new frontiers and possibilities which deliver optimal experiences for employees.
Digital transformation is at the heart of progression, and by utilizing modern technology your company will perform better.
Here are some of the leading incentives for adopting a digital transformation strategy:
- Improve Customer Engagement & Experience
- Improve Business Decision Making
- Increase Efficiency
- Greater Innovation
What Problems Does Digital Transformation Address?
Digital transformation is usually introduced as a necessity, not a choice.
Understandably employees grow accustomed to their way of doing things, which makes the prospect of an overhaul seem discouraging.
But in order to stay competitive in rapidly changing markets companies must be prepared to innovate. Keeping pace with technological disruption is imperative.
Companies must embrace online marketing channels, introducing digitally evolved products and high value propositions with business offerings.
Utilizing cloud technologies is a great way to scale operations, especially if globalization is a firm objective.
Digital transformation contributes to reaching a vast audience, while adding value for existing customers.
Let’s take a look at a practical example to provide clarity on the importance of digital transformation.
HMV stood by its outdated business model as companies like Netflix, iTunes and others shifted to digital downloads and online streaming.
While new companies met consumer demand HMV remained stuck in the past. By the time the powers that be reinvented the company it was too late.
HMV could’ve used digital transformation to address the problems associated with losing relevance, but it was all a little bit too late by the time HMV cottoned on.
In a digitally empowered marketplace companies must cater to modern demand to survive the times, or risk facing problems like inefficiency, loss of custom and an inability to scale.
Today every industry is experiencing rapid digital revolution.
It is a case of evolve or risk becoming extinct, a problem digital transformation seeks to address.
5 Advantages of Digital Transformation
Let’s take a look at five ways your business will benefit from digital transformation:
With powerful technological oiling the machinery responsible for internal operations, teams can collaborate seamlessly for a productive outlook.
Streamlined communication sharpens business tools, for example the ability to share inventory data to effectively determine production levels and shipments.
Digital structuring enables accurate income forecasts and sales, elevating a company’s prediction prowess regarding future growth.
Enhanced Customer Retention/Acquisition
Losing customers to companies more digitally advanced than your own is a genuine threat in today’s society.
Many emerging businesses threaten existing ones by differentiating with digital practices, leaving already established companies behind.
With digital innovation you mitigate the risk of losing customers, while acquiring new ones along the way.
Relying on legacy marketing operations can get you in trouble, especially when you’re not constantly refreshing your products and services in line with advancing technology and expectations.
Regular reinvention helps with customer acquisition and retention, alongside providing more access to large markets.
Digitalization has enabled globalization, particularly recent cloud technology advances.
This has removed some of the barriers of entry which prevented small companies experiencing growth.
With the right strategies in place companies of all volitions can thrive, without being limited by access to funds or ambition.
Technology enables expansion, where geographical restrictions no longer impact new companies.
Cloud resources can be accessed from anywhere, communication processes enacted across borders and streamlined solutions are available through collaboration tools.
The infrastructure modern businesses need are accessible, meaning with digital transformation there is no limit on a company’s worldwide reach.
Better Marketing and Management Decisions
With greater foresight and insight (achieved through a digital transformation program) companies can streamline business operations on every level.
This has a pronounced impact on management, where digital tools can be used to analyze data across the board.
As a result, predictive models can be developed with greater confidence, making it easier for management to identify opportunities and risks.
This facilitates better decision-making, aiding the formation of efficient maintenance programs.
Breakdowns are less frequent as a result, alongside greater scope to analyze consumer behaviors to align your business strategies with customer perceptions/preferences.
Predicting the next market trend becomes much easier when digital transformation is prioritized.
Sales leads can be identified early in the sales cycle, while areas of improvement in production chains and workflows can be established and improved.
On a quest to digital transformation it’s important to keep sight of the why and how of innovation, particularly how it will impact organizational efficiency.
Chances are you’ve collectively developed habits which aren’t conducive to high performance in a modern world, in which case you should evaluate the roadblocks which are holding you back.
Many companies use systems which don’t communicate well with each other, or have process bottlenecks which prevent departments reaching their full potential.
Digital transformation eliminates many of these bottlenecks, automating workflows to enhance efficiency across the board.
Thanks for reading! Remember to treat the development of your digital transformation strategy with the respect it deserves!