In the last decade, the business world has seen the birth of a new universe of digital applications and solutions. Although each of these tools works differently, they all have the same goal: to accelerate the digital transformation of organizations.
However, to carry out this change efficiently, companies must develop an action plan and implement strategies that help them understand their current environment.
To help you overcome this important challenge, in this blog post, we will take an in-depth look at what this change consists of and show you some strategies that will help you make this process a success.
Let’s start by analyzing what is involved in making this transition:
What is a digital transformation?
We can define digital transformation as the integration of technological solutions in all areas of a company. Which leads to fundamental changes in the way organizations operate and deliver value to consumers.
Due to the IT disruption currently facing the business landscape, organizations need to keep pace with changing technology trends. Thus, digital transformation is an essential change that must be made by all companies, regardless of size or industry.
However, before starting this process, it is important to distinguish this definition from digitization, since both are often used incorrectly and interchangeably.
Digitalization is the action of converting a company’s products or services into digital ones. Digital transformation in many cases can include digitization. However, it is mainly focused on the evaluation of processes to identify areas where improvements can be made with the help of technology.
How are companies achieving a successful digital transformation?
Innovation is currently taking place at an unprecedented pace. For example, fast-food restaurants are partnering with technology companies to streamline their online ordering. On the other hand, gyms and fitness companies use media to interact with their customers, even when their physical locations are closed.
All of this can be accomplished by implementing the following technologies:
Automation: Intelligent automation tools allow companies to reduce labor costs and increase worker efficiency. These solutions also improve customer service quality with faster response times and personalized attention.
AI and machine learning: Artificial intelligence and machine learning are essential components of a successful digital transformation. These systems offer advanced insights from the analysis of large data sets and enable teams to streamline decision-making.
Cloud computing: By adopting cloud technology, companies can access data and applications centrally over the Internet. This gives them greater flexibility when managing their processes while improving the customer experience.
By implementing these technological tools, companies can keep their infrastructure up to date and increase employee productivity. However, keep in mind that to get the most out of them, you must follow an order and create a strategic plan.
Steps for a successful digital transformation
Before embarking on this transition, keep in mind that digital transformation is an ongoing journey. Thus, companies must commit to constantly monitoring and improving their operations.
By taking the time to understand your current processes and your customers’ needs, you can ensure that you are making the most of your company’s resources.
You can do this by following these steps:
1. Analyze your value proposition
You must start your digital transformation journey by looking at the foundations of your organization, i.e. its mission, vision, and values. You should also analyze the way you are offering your products or services, and how you can improve them in the future.
Identify opportunities for innovation and how technology can help you. In this phase, you should focus on the general elements that will help you create greater digital disruption. Think: What digital version of my products or services would I like to bring to market?
2. Focus on improving the customer experience.
Delivering a good customer experience is vital to succeed in today’s marketplace. Thus, when digitally transforming your business, instead of focusing on adding new features to your products or services, put more emphasis on satisfying your customers’ needs.
If you have a clear understanding of your customer’s problems and offer them personalized attention, you will gain their trust, and they will buy your products again.
For example, many restaurants, instead of promoting their dishes, focus on improving their home delivery service. This strategy not only allows them to interact with people who are unable to visit their business, but it also speeds up customer loyalty.
3. Set clear objectives
Perform an analysis of your processes to establish a relationship between the current state of your company and what you want to achieve with the digital transformation. To do this, it is important to identify the tasks and elements you need to automate.
With this analysis, you will be able to identify the steps you need to take to go from point A (where you are now) to point B (where you want to go). These steps will be transformed into a plan of several phases that will help you complete this project successfully.
It is also essential that you make a list of the physical resources and personnel needed to carry out this change: this will help you better budget expenses and know if you need to make new hires.
4. Implement an action plan
This last stage consists of putting your digital transformation plan into action. By dividing this process into phases, you will be able to reduce the risk and financial burden, making this transition more manageable.
Remember that the goal of this change is not to radically change your current products or services. Start by asking your team to test and evaluate the results. When you identify what works, you’ll have a better idea of where best to invest your time and energy.
How to measure ROI in a digital transformation?
To calculate the return on investment (ROI) after performing a digital transformation, organizations should consult quantitative and qualitative metrics. This way, they can understand the true value of their efforts.
This analysis can include the following indicators:
- Customer satisfaction.
- Operational efficiency.
- Cost reduction.
- Resolution time.
Likewise, you can subcontract a firm to manage and evaluate your company’s transformation. Thus, you can properly monitor the results throughout the project’s life cycle.
However, keep in mind that this is an ongoing project. Therefore, you need to constantly evaluate your processes and products to identify growth opportunities in time.
Digital transformation is a cornerstone that must be coordinated by leaders in all areas, always supported by intelligent systems that facilitate the management of their tasks.
If you want to start now the digital transformation of your business, our team of experts is ready to help you. Contact us and receive a free consultation.