Digital transformation has become an overused phrase in the workplace. According to Forbes, digital transformation is the use of technologies to radically improve the performance or reach of an enterprise. 78% of respondents across a wide range of industries said that achieving digital transformation is a priority for them within the next 2 years (MIT Center for Digital Business). But, what does this mean and how can you leverage digital transformation to your organization’s advantage?
In business, digital transformation can involve changes to the foundational components of an organization; from its operating model to its digital infrastructure. A transformation program touches every function of a business; from marketing and sales to operations. The process of digital transformation can be expensive and risky. Generally speaking, businesses that go through this transformation are the ones that have failed to evolve and keep up with their industry, and as a result, are playing catch up.
For large organizations, digital transformation takes a significant amount of resources and time, a cross-functional set of business skills, and a strong understanding of customer and employee needs in regards to their digital experiences with your organization. Putting your organization through digital transformation can be a risky process, although, if done right, it can produce great benefits for your employees, clients, and organization.
Keep in mind that digital transformation is not for every organization. Organizations that continue to foster a culture of constant evolution and cross-functional collaboration are always transforming. Organizations that aren’t constantly evolving and adapting are generally the ones that need digital transformation to be able to compete with competitors in their industry.
In recent years, there has been a heavier focus on digital initiatives in most (if not all) industries. Businesses are starting to see digital initiatives as a means to help better engage customers externally and employees internally. 58% of businesses surveyed now look to digital to help sell profitably and 56% of businesses assess the impact of digital in relation to customer experience (Accenture).
On an internal level, digital transformation has the potential to empower your workforce. Implementing the right digital tools can help ease the collaboration process across departments and geography within your organization. Done right, digital transformation can help integrate and streamline entire business processes. A streamlined process means fewer unnecessary emails, errors and delays since workflows are being assigned to the correct employees. Through features like role-based workflows, you are able to assign tasks to specific individuals, which in turn will reduce the amount of work that falls through the cracks. With the ability to add, edit, share and collaborate on essential data, your teams can resolve problems more quickly and in real-time, which in turn can help your organization not only meet, but exceed client needs.
For more information on elevating employee engagement by going digital, click here.
Being productive, and efficient internally is important for an organization because a good customer experience starts with your internal team. With well-functioning internal processes, your customer experience has a significantly better chance of being successful.
A study done by Forrester Consulting concluded that 63% of organizations planned to improve their online customer experiences this year. Digital transformation is a customer-driven business transformation initiative rather than a strictly technical challenge. Throughout the customer journey, customers will interact with your organization across more than one channel within their journey. It’s important to ensure that the customer experience across all of your channels is consistent and positive, especially on the digital front.
Increase in sales
Companies that have embraced digital transformation are 26% more profitable than their average industry competitors and enjoy a 12% higher market valuation (MIT Center for Digital Business). While sales are important, what is more important is gaining the knowledge of how those sales are made. In today’s digital age, most consumers will almost exclusively interact with and learn about organizations through digital channels. With a better understanding of your customers, an increase in productivity and an improved overall customer experience, your organization will not only become more profitable but will have also build a stronger brand. By having a positive, well rounded brand reputation, your organization is more likely to succeed in retaining clients and converting prospects, especially when they are deciding between you and a competitor.
Promotes a positive and forward-thinking company culture
According to PA Consulting, only 26% of people think their firm has the right mindset to survive and thrive in the digital age. Across the three dimensions of digital transformation – organization, operational process, and technology – businesses are making strides, but they are still struggling with traditional silos and lack of alignment (Accenture). Many firms are stuck offering an “average” digital experience, meaning that they have a limited understanding of what to do next, how to do it, and how to measure the success of each digital experience. Embracing technology and using it to improve your organization’s business processes and engagement rates can create a company culture that encourages creativity and innovation.
Through the process of digital transformation (although it is different for every organization), you are working towards improving the way you run your business, how your employees interact within the organization, and how your external communication channels can improve. The process of planning how your organization will go through digital transformation and enhance business processes can promote out-of-the-box and creative thinking. By taking the initiative to innovate and change big things within your company, you are cultivating an environment that is open to change and improvement. Creating a company culture where development and creativity is encouraged can promote a positive, innovative, and forward-thinking company culture that you can be proud of.
Not one person alone can make digital transformation happen. It requires a company-wide buy in, strong collaboration, and executive advocacy. The motivation can’t come solely from the C-suite. The brainstorming and input on the transformation process must come from all levels of an organization. Take a look at the image below, courtesy of Bobby Albert. 96% of problems are not known to top managers. This statistic speaks to the importance of ensuring every individual in your organization has a say in regards to modifying processes, making improvements, and how to go about your organizations’ digital transformation.
Now is the time for organizations to re-examine their businesses processes before they are left too far behind in the digital age. In a time where digital is transforming how we do things, it is more important than ever to ensure that your organization is evolving and reacting to the changing digital times.