By: Katie Johns
Once it was best for organizations to follow standardized processes and adopt technology across the organization. The current trend demands more customization and individualization of processes and technology as per the different needs of different organizations. The business dynamics have changed to become more customer focused while in the past they have been more production focused.
The need of the hour is for organizations to be attentive to the disruption happening around them and be quick to adapt and ride the transformative wave. There are many reasons for disruption – it can be due to rapid changes in the market, technology, expectations of customers and technology. New digital developments are rapid and the customers are getting more in control.
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Hello, Digital Transformation
At a basic level, the word digital refers to the pace of change in the current times led by all the changes in technology.
The term Digital Transformation has been around for a while. It was possible to ignore it till sometime back but not anymore. It has become a business imperative. Business success in the current times requires new technologies, new psychology and new strategies.
Digital transformation is referred as the changes that are happening in business and organizational activities and processes. It’s understanding the digital technologies and the mix of what will work best for your organization. The triggers for digital transformation are wholistic customer experience, innovation and operational flexibility. Digital Transformation impacts business activities, processes and models, basically every aspect in an organization. It is the responsibility of the business leaders to ensure that digital transformation is truly adopted for a competitive advantage and super amazing customer experience.
Amazon, Uber, Airbnb and the likes are leading digital transformation companies. They can easily be called digital innovators. Companies that are just focusing on digitizing existing services are not a transformational journey. Digital enterprises are quick to respond to market volatility, flexibility, scalability and seamlessly delightful customer experiences.
The transformation requires planned, strategic and organizational change. People in an organization must be empowered to work upon a responsive data driven strategy that leads to innovation. They should work towards a culture of innovation and the main responsibility for this lies with the leadership. The leaders in an organization have to create a culture, empowered with the latest technologies and communication methods, to encourage innovation.
Almost all organizations (big or small) are considering digital transformation. The pace at which they are adopting the changes hugely depends on the maturity of the organization. There are 5 main areas where the organizations are primarily focusing while attempting digital transformation – Customer experience, innovation, employee engagement, technology and analytics. Let’s take a closer look at each of these areas:
1. Customer Experience
Customers engagement and experience are the propeller for your business. Understanding your customers is the key. Customer expectations are undergoing changes like they expect a quick response time and real-time access to the products and services that organizations are trying to sell.
Digital transformation requires investment in smart technologies for a seamless, integrated and consistent customer experience.
Digital transformation must lead to digitizing the existing business model and go beyond just fulfilling the current market needs. It should be able to spark new product development and innovations that fulfills a future market need.
3. Employee Engagement
It is of paramount importance to engage employees when the organization is undergoing a digital transformation journey. It will help to execute business strategy, encourage a customer focused culture, think innovatively and develop roles within the company.
Digital transformation is truly implemented with the use of the most suitable technologies. Investment in technology might be cost-intensive in the short-term but it pays in the long-run. It is an investment that truly pays off to meet future needs.
How will you know if the digital transformation journey is giving you the desired results or not? Of course, you measure the results. Engagement, capability and consumer behavior are all parameters that should be measured. Digital transformation should be able to generate revenue streams and units that are new for your business.
If you wish to understand how you can achieve data driven actionable results from digital transformation, speak to one of our experts.
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