Everything we knew was changed in 2019 as the world entered into an era of digitalisation. Digital technology has grown in importance in all aspects of life, culture, the economy, medical care, the media, and many more.
What is Digital Transformation?
Digital transformation is the use of technology to solve traditional problems. If digital transformation is deployed correctly, companies will provide customers with unprecedented value. When customers get value, it represents the success of the digital transformation plan.
On the other hand, if a company uses the technology provided for digital transformation but does not see significant results and does not bring value to customers or the company, then digital transformation is considered unsuccessful.
In order to achieve digital transformation, digital technology should be integrated across the organisation, from internal management to sales and service, among other departments.
Most often than not, every department or division of the company has its own data and technology that are different from one another. Digital transformation is about changing this scenario, making it easier for people both inside and outside the company to have a more seamless experience when it comes to data and technology.
Most businesses understand that digital transformation is a popular trend and have recognised the need for digital transformation. However, the process of transforming a business digitally can be time-consuming and tough, especially if you don’t have the experience. As a result, companies must know where to begin.
Here are the five steps to digital transformation.
Identify your strengths and weaknesses
The management team is the first and most significant part of the digital transformation plan. Management must be able to determine their company’s strengths and weaknesses. For example, does the organisation have enough finance, technical expertise, data, and market knowledge to know what is ready and what is not?
At this stage, management is crucial.
The management must help the team communicate with key departments quickly and efficiently to get data, then let the team do data analysis and review before carefully choosing a target framework that will help them make good decisions for the next step in the process.
Although data analysis is important, it cannot replace creativity. Management and teams must use their creativity to the fullest. Consider how a company might function if it were fully digitally transformed. Thinking outside the box is required when looking for innovative methods to serve consumers throughout their customer journey.
Identify your goals
The second step is to set realistic goals and KPIs based on the evaluation results.
Knowing the path towards achieving your goal is key.
When defining goals, bear in mind that teams do not have to do everything at once. Begin with small projects and gradually grow as the program gains traction and financing.
Almost all the digital transformation we see is about integrating and using data to enable new ways of reaching customers by improving consumer experience or reinventing products and services. Traditional businesses should learn from digital transformation practices from both inside and outside their own industry to have the best idea.
Clean up the environment
Companies can compete with their rivals when teams have access to a wide range of digital technology resources that are reasonably priced and easy to use from technology to platforms and suppliers.
Management and teams need to figure out what skills, talents, and technology are available both inside and outside the company to help achieve the stated goals.
Determining how much we rely on these relationships and how to arrange them are equally important. As a result, management must be aware of how to protect the company’s most valuable assets, such as customer relationships and data, as they evolve.
Furthermore, the easiest way to start your first project is to figure out what digital transformation means to your company’s unique business environment.
Netflix is the best example of this because it uses data to make smart decisions and always changes its products to fit customer and technology habits. Today, Netflix is worth $100 billion.
It’s important for businesses to know how their customers use technology and how the market works so that they can make a successful move entering the digital world.
Clarify the plan
Unexpected and unplanned events will happen no matter how well-planned a digital transformation program is.
In addition to creating a transformation plan, it’s important to think about how to deal with unexpected problems. To deal with unexpected setbacks, management must come up with a plan B that can keep the organisation stable.
Furthermore, companies must develop a digital transformation strategy that describes and evaluates the particular links and content of digital transformation and explains roles and tasks in terms of technology, staff, management, and more.
Also, sort out the digital transformation and business processes, describe the obstacles and problems that may occur in each process, and use digital technology to guide the internal transformation of companies and the reshaping of business models to ultimately empower companies to create value.
Dare to explore and try
Finally, in terms of execution, companies must encourage the integration and development of digital technology and business from the ground up, as well as speed up the reconstruction of the corporate business chain.
Apply big data, cloud computing, artificial intelligence, and other technologies to accelerate the adoption of digital technologies such as online marketing, remote collaboration, digital office, smart warehousing and logistics, and intelligent decision-making and create a data collection-feedback-analysis-decision-making chain.
The changes made in the business model and direction of the company are the foundation for making decisions, and the use of data technology at the business level encourages digitalisation across the company.
The most essential thing is to devise a strategy and put it into action. Many businesses already give up during the planning phase. Conservative thinking, or fear of failure in transformation, is the obvious culprit.
Companies must live by the adage “failure is the mother of success.” Businesses must be able to detect issues, make repairs, and then start over.
We hope these five major steps of digital transformation will guide companies on the path to success by increasing competitiveness, creating value, and performing exceptionally.
It’s important to be down to earth too—tailor measures that fit the local economic climate, monitor closely and find the best digital transformation path for your company, among other things.
If your company lacks the talent and manpower to identify, launch, accelerate, and execute digital transformation, you should consider working with a digital transformation expert that will design, implement, and manage your transformation program to meet your business goals.
Exabytes is the architect of your business growth. We deliver added value to ensure our customers are successful. Contact us to find out how we can help you maximise your business resources for digital transformation.