What is Digital Transformation?
Digital transformation is the use of technology to transform analog processes into digital ones. We have been digitizing in all areas of our lives from smart watches to artificial intelligence-enabled household assistants. Digital transformation refers more to the way technology revolutionizes business with new technological fields such as machine learning, big data and the internet for everything. Your brand may not have to worry about these tough topics right now, but you should definitely implement a digital transformation strategy.
What impact will digitization have on business?
Digital transformation in business is a little more complex than replacing postal mail with email. This transformation uses technology to enhance the customer experience, supply chain, stakeholder management and overall business processes. So when we say digital transformation, we really mean it. To fully accept digital technology, you also need to prepare for a total business transformation. If you are still operating in an analog system, now is the time to start your transformation initiative.
Why should a company have a digital transformation strategy?
There are many reasons why any brand should go digital, at least because the rest of the world is now doing it. Every new startup business strategy will immediately apply digital in this modern era because the old process is starting to be abandoned for the new business model. These modern brands have not gone through the so-called “digital disruption” that affects legacy businesses, so they are already ahead in terms of operational efficiency. This means that the brand you want to catch up with, you need to update your workflow to welcome the digital age.
But it's not just about stopping competition. Using digital technology can have enormous benefits for your team, company culture and overall productivity.
Switching your business to digital means doesn't have to be as scary as it sounds. Sometimes, the slightest effort can pay off in big rewards and this you may notice in your daily life. For example, the following are all classified as digital transformations:
– Digital banking
– Digital shopping coupons
– Digital customer loyalty card
– Click and grab service
– Self-service online customer accounts
All of these changes on the surface seem like minor changes, but they are actually all using automation to transform for a better user experience. This means more satisfied customers.
What are the benefits of digital transformation?
You can't argue with the goal of being a digital-based business, here are some ways that can help improve your brand:
Improve resource management
File cabinets here, desktop documents there, one program for one team, and different programs for another. The old way is not always the best way. Digital processes such as cloud computing and cloud storage, give you a central place online. This means collaboration where one component relies on sales people passing the document to finance whenever they have free time can now happen instantly from one shared secure and protected folder.
Documents, pictures, and even long videos can all be stored securely online and easily accessed from your PC, laptop or mobile device, wherever you are.
Become more efficient
Digital processing is almost always faster than analog. Contracts, for example, used to take days to finalize. With the digital way, now you can cut it down to a few minutes. An electronic signature means that you no longer have to worry about printing contracts and emailing them. All you have to do is ask for an e-mail signature on the digital document and the recipient can sign it as soon as the document reaches their email inbox. Even if you work with hard copy, you can still make it much more efficient with the Dropbox document scanner. Just use your phone's camera and turn your documents into digital files, ready to be emailed, shared, or stored securely in your Dropbox account.
With things running more efficiently, you have time to do more important things, lessons that even a historic institution like the University of Sydney can learn. The CIO explained, “We want to offer the best choice of collaboration for our staff and students, so they can focus on their important work, and Dropbox is perfect for that.”
Improve company culture
Bureaucracy is the enemy of a satisfied team — who wants to be buried in a pile of documents and e-mailing back and forth? Going digital can help improve your overall teamwork experience in ways that old technology couldn't. Either eliminating compartments or sectoral egos by opening up communication channels such as instant messaging to allow information chat without people having to leave their desks, or by spearheading a sense of responsibility with a shareable to-do list. You may have seen company perks such as free lunches and a shiny new office being hailed as important corporate culture. However, the increasing number of teams working spread out and companies whose employees work remotely (remote) has revealed the need for team empowerment and loyalty that cannot be provided by the office environment. To fully empower and inspire teams, wherever they are, make sure they have the tools to do their job well and always improve. Modern business leaders must make digital priorities if they are to boost employee satisfaction.
Achieve your business goals
This may be a bold claim, but turning to digital will help you reach your business goals even faster. Whether the goal is profit, customer experience, digital, in this era and present, it is the only place to go. For example, e-commerce or e-commerce. Offline retailers can't take advantage of social media to showcase new products, mailing lists to ensure customer return, or data analytics for deeper customer insights. There are many things that are part of modern customer expectations and are very burdensome to the buyer's decision-making process. Failing to meet customer needs means lost conversions, lost customers, and lost profits.
How do you create a digital transformation strategy map?
If your business is ready to use new technology then you will need a digital transformation strategy map to guide you. Your transformation efforts can take many forms, however, each brand will have a different journey of transformation, but here are a few things to guide you:
- Define your transformation area
Yes, the entire company will make changes, but you need to define exactly what parts you want to concentrate on transforming. There are tons of digital tools out there, and it's easy to waste money hoping to get the job done. The truth is, investing in the wrong tools won't do much for your business. So, try to divide your business into a few key businesses, then look for the changes that need to be made to make it run as efficiently as possible. Common areas include:
People and culture: how you can enhance your company culture, for example by adopting instant messaging
Process: how you can improve core work processes, such as using financial software with shared access for things like expenses
Customers: ways you can increase your customer reach and retention, this could at best be connected online, or more complex, such as updating your online store's CMS
- Budget
Make sure that you have sufficient investment behind your digital endeavors and make sure that you are placing it on the best tools. Multi-functional tools are the most cost effective option. Dropbox, for example, not only secures a place to store all your files, it's also a platform, for easy collaboration, communication and team efficiency. Make sure you also consider your options in real time. No “we will allocate X for an indefinite period of time”, but “we will budget X for a one-year subscription”. Many digital tools work on a SaaS or software as a service model, so be prepared to make a continuous investment instead of a one-time fee.
- Appoint personnel
While everything digital makes things more efficient, it also introduces completely new processes for your team. For example, a social media presence will need a social media coordinator, a website will need a content manager. This can be an excellent opportunity for your team to upgrade their skills and take on new challenges, but it can also mean that you will need to recruit new talent for these important roles. If you are just starting out with the digital process, you will need a solid team to start with. This means fresh beginnings, and it comes down to making sure that is spent on budget.
- Change your work method
Digital processes have created a whole new way of working, including Agile. All of these processes are centered on communication, teamwork, and keeping productivity high. You should see the current work process and update it if necessary. Note, however, that as with anything else, the start is sure not to be smooth, so make sure you factor in a few extra weeks in your strategy map.
- Post launch maintenance
Digital transformation success doesn't happen overnight. The modern world is moving fast and now that you are part of a new digital ecosystem, you have to have a high rate of work. Make sure you are up to date with the latest digital best practices and basics. Continued professional development also has a positive impact on your company culture and retains talent, so it's a win-win.
