A digital transformation strategy is the approach to remodelling your company to make it more efficient and productive. You’ll be able to achieve this by using different digitised tools, such as chatbots and mobile apps. Gartner says that digital transformation encompasses any digital initiatives we might take, from IT modernization like cloud computing to optimization for our business or the invention of a new model.
But digitising your company isn’t just about investigating new technology, launching digital projects, and moving your storage over to the cloud. Digital transformation involves investing in all aspects of the business in order to efficiently compete against competitors.
It may be daunting, but this is a big change that doesn’t happen all that often. But the benefits of digitising processes, tools, and strategies to support them outweigh the effort required: benefits including greater productivity, quality, collaboration, and agility. They also ensure the best possible performance in a constantly changing world.
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Why the need for digital transformation?
A digital transformation strategy is essential before attempting such an endeavour. The most innovative, agile, and renowned companies don’t view digital as yet another project to complete or product to develop, but as core to who they are.
The world is quickly becoming digitalized due to the prevalence of new technologies. One survey found that 70% of executives believe that this is inevitable and that we must keep up with the digitalized pace in order to survive. It’s not just about developing digital products anymore; it’s making sure you leverage digital technologies to find opportunities and challenges and deliver solutions.
In order to survive, companies must rethink the way they operate in the digital economy. This means implementing technological advancements and integrating new business practises such as digital transformation.
The right technology can offer vital insight into customer needs, including foreseeable ones. Customers could be internal or external, but the aim is always to solve their problems with innovation.
What strategies can you use for digital transformation?
Digital transformation is not one cohesive thing. Some custom software development companies focus entirely on organisational transformations, while forgetting that there are four different types of digital transformations. They’re not taking advantage of all of digital transformation’s exciting possibilities because they’re limiting themselves.
- Business Process Transformation
There are a lot of new technologies out there that can change the way your corporate processes are going to work. If you want to stay ahead, you must adopt many new data analytics, APIs, machine learning, and even futuristic ones. An example of a successful transformation process is Amazon, where customers can order from any device. The company has completely reimagined the retail ordering process, which helped them dominate the market.
Other companies have already adapted to back-office automation, and this has created tremendous new value in their organisations. For example, many companies have adopted robotic process automation to simplify their legal and accounting work.
- Business Model Transformation
Business model transformation targets specific areas of the business with a focus on the underlying way in which value is delivered in an industry. In essence, companies can use digital transformation to change these foundational building blocks so that there’s a better fit with their customer needs. Amazon and Apple have both changed the way they sell their content. They’ve broken free from traditional models to find more efficient (and innovative) ways to deliver books, videos, music, or whatever else customers want.
- Product transformation
For example, Microsoft is a company that has transformed from being a traditional software company into a cloud giant. What’s more, with the launch of Microsoft Azure and their current success in the cloud computing industry, they’re now the largest provider. This is a market previously led by giants like IBM. Azure is a great example of a company that is constantly innovating, creating new products and services. They are able to transform the products they sell by constantly redefining what they are. This has created a lot of opportunities in the industry and widened the companies’ potential customer base.
- Business cultural transformation
Businesses should regularly redefine everything from their organisational mindsets, processes, and people to their capabilities in order to effectively stay competitive in the digital world. The most successful companies now demonstrate that they understand they need to have a flexible workflow, decentralised decision-making, and testing if they want to be successful in the digital market.
How to go about digital transformation?
- Be methodical about the transformation.
This first approach will help organisations that want to focus on empirical evidence. The difficulty is that you run the risk of remaining idle until your digital transformation takes off. If competitors are able to start before you do, they can gain a huge advantage and beat you to the punch. Most organisations have both digital and non-digital solutions, so that’s usually the first approach.
- Take a long-term approach
This approach focuses on getting the strategy as complete as possible from the start. This takes time and resources and a deep understanding of your market. Digital transformation, from a long-term perspective, predominantly focuses on organisational culture and implementing changes quickly. It usually takes a lot of time and money and is not for the faint-hearted. Businesses with a need for digital transformation should be patient and be willing to take risks.
- One step at a time.
This method is useful for starting with an idea and then finding a stable path to a potential digital destination. However, as your company grows, you’ll realise that some things need to change, so the paths back to the destination may not be the same. This approach allows you to create a solid and adaptable strategy that will remain effective over time.
Is digital transformation for you?
Digital transformation differs greatly depending on an industry and the challenges it faces, but one constant is that new technologies will always lead to changes in how companies function.
Organizations have never been so pressured to transform into digital versions of themselves. Fulfilling the Agile mindset and relying on a supportive technology platform and business partner are key elements in this process.