According to a Tech Pro Research survey conducted in 2018, 70% of companies either have a digital transformation (DX) strategy already or are working towards one. In the case of large enterprises, the number may even be higher.
Digital technology and all its innovations have contributed immensely in shaping the world as we know it today. Several industries have become reliant on digital technology to make their job easier and pave the path for more developments.
Digital transformation success is one of the key driving forces when it comes to implementing new ideas and technology.
In this blog, we learn how to go about a successful digital transformation to ensure your business growth.
What is Digital Transformation?
For those of you who don’t know what is digital transformation, it is the integration of digital technology into all business areas. This technology has the power to transform the way a business operates and delivers value to its customers.
In DX, the company uses new, fast, and dynamic digital technology to resolve problems often by means of cloud computing. This leads to an increased reliance on subscription-based cloud services.
There are a few of the digital solutions that increase the capabilities of traditional software products, while others are only cloud-based.
In addition, DX is a cultural change that requires companies to continuously challenge the status quo, conduct experiments, and get comfortable with failure.
How do these companies incorporate digital transformation?
Several companies opt to transform their internal processes while making a digital change. For starters, companies focus on renovating their business operation model to better suit the upcoming advancements in the field of digital technology.
They introduce new products and technologies that can provide them with a competitive edge in the market, which is why they often opt to interact with external partners through digital channels.
Adoption of technologies is certainly one of the key driving factors when it comes to incorporating digital transformation requirements.
Here’s a list of digital transformation technologies that businesses have been using these days
- Traditional web technologies
- Cloud-based services like help desk software
- Mobile internet technologies
- Big data and big data architecture
- Internet of Things
- Design thinking
- Artificial Intelligence tools
- Advanced neural machine-learning techniques
- Augmented reality technologies
- 3-D printing
These advancements in the field of DX aim to provide the company with something that makes them stand apart. Furthermore, the introduction of new technologies can serve a bigger purpose by smoothing out business operations.
Do digital transformations always work?
The answer is, unfortunately, no.
Less than a quarter of companies that take up digital business transformation strategies survive.
The major problem that arises when going for such a transformation is the lack of coordination between the different wings of the business. Several businesses state that although their performance has improved, technologies require tremendous upkeep.
Even companies in the digital sphere – media, telecom, and high tech find it quite difficult to consistently evolve with such a tremendous change.
Companies with a smaller workforce are more likely to incorporate a digital transformation successfully.
Key Factors Driving a Successful Digital Transformation
1. Introduction of New, Digital-Savvy Team Members
When a company is looking to overhaul its operations and change some key aspects in its functioning, it requires a workforce that follows customer service tips and is trained to navigate the company through such a change.
Although the top-level executives in the company usually remain aware of the changes and its impact on the business, employees also need the guidance of experts that will help accustom the team to the new digital technologies.
Addition of new leaders to the management team can definitely help the company drive forward in the face of a digital change. These transformation-specific roles will issue added responsibility as well.
Inconsistencies with regard to transformation will be lesser with added responsibility and correct division of work.
Companies who hire a Chief Digital Officer (CDO) to overlook and manage the digital transformation process are more likely to succeed in their efforts. Leadership commitment is yet another important factor that can guarantee success with digital transformation.
2. Skill Development Within the Workforce
No matter what changes your company seeks, digital or traditional, you need to incorporate new training techniques for the workforce. Skill development of employees is necessary when it comes to accomplishing success.
Companies will need to reevaluate and redefine each employee’s role within the organization. The practice will need to be aligned with the new goals towards digital transformation. Each person’s roles and capabilities can be assigned in accordance with the elements that best favor a successful conversion.
Next, the people at higher and powerful positions will need additional training to learn skills that help the organization take a step closer to digital transformation.
Undoubtedly, it is more beneficial for a company to have a majority of the workforce with adequate digital knowledge as compared to having a handful of digital experts.
3. New Ways of Working
Several studies show that digital transformations require plenty of work culture changes. Consider that your work team has been assigned a new project. This project can only be successful if each member contributes equally and shows enthusiasm and novelty in ideas.
A digital transformation is like a new project, except, the members of this team consist of every member of the company. Leaders need to empower the workforce to bring our new ways of working.
Continuous learning and open work environments are known to be catalysts for reinforcing new behavior that leads to organizational change. Employees too can contribute with their ideas as to the different areas in which the company can enforce digital technology.
By encouraging employees to experiment with new ideas, team leaders should be aware that failures are bound to happen. The key here is to learn from these failures and achieve overall business development.
4. Introduction of Digital Tools
Replacing the day-to-day communication and work tools with digital alternatives have proven to help the company advance in digital transformation.
Here are three ways in which digital tools have guaranteed success:
- Implementation of digital tools can make information more accessible across the organization. A smooth transmission of key information is important when it comes to incorporating a digital-reliant business.
- Digital self-serve technology for employees’ and business partners has made communication easier across companies.
- Standard operating procedures can be modified to include new digital technologies.
5. Frequent Communication
One of the key requirements during a digital transformation is to convey a change story. A change or transformation story is one that highlights the reasons as to why the company has undertaken a digital transformation. Through this story, employees should be briefed about the potential changes that will be seen over the coming months or years.
Additionally, employees need to be made aware of changes in their roles and responsibilities. Incorporation of training to develop new skills and talent also needs to be a part of this transformation. You may even acquire a help desk software and based on the reports (it is one of the features of the help desk software), work towards improving the customer service.
Leaders need to immediately shift their team’s focus on the new changes at hand and accordingly draw up a list of all the necessities required to foster such a transformation. Using digital mediums to communicate such change has also proven to benefit the company immensely.
Change is constant, and this statement holds more weight in the world of business.
Diving into the world of digital transformation requires clarity in planning, consistency in execution, and excellent communication.
With these factors in mind, every business is much more likely to go through a digital transformation success.