How to develop a digital transformation strategy for your business
May 24, 2021
Today people talk about "digitalization" almost everywhere. We're sure you've heard a lot about digital data, media, marketing, and more. Companies are looking to go digital as quickly as possible.
But what is the right way to do it? What is digital transformation, and how do you develop a digital transformation strategy for your business? Let’s find the answers together.
What is a digital transformation strategy?
A digital transformation plan is a way to help you properly analyze your own needs, understand the role of technology, and set the necessary business goals.
A transformation strategy is essential to organizations as it allows them to benefit from innovations to stay competitive in the market and better serve their customers. Today, companies need to be flexible to meet customers’ needs and improve efficiency.
In addition, based on data from Tech Pro Research, about 70% of enterprises are actively using or working on a transformation strategy. And nearly 50% of organizations said their digital transformation budget is constantly increasing.
What does digital transformation give you?
Improved customer experience
Today, one of the reasons for people's obsession with new technologies and applications is a desire for an easier life. We all want to receive valuable solutions to problems as quickly as possible.
Digital technology works based on customer experience. Most companies have already recognized this. 91% of CEOs are developing a digital strategy to improve it.
Organizations can use digital tools to provide clients with quick access to their services through mobile platforms or various media. Also, you will be able to offer other related products or services using the data attached to client accounts.
Competitiveness is what helps ensure the survival of your organization. With the rapidly evolving world of digitization and the tremendous transformation of the business environment, competition continues to grow.
In this case, by transferring your company to a digital place, you keep up with your competitors, positively affecting your business in the future.
Increased employee productivity
While business owners are actively innovating, your employees should also improve their skills to keep up with the rapidly changing technology space. This way, they can significantly improve their knowledge and experience.
With more advanced skills, people in your company will be flexible and improve communication across all departments.
Enhanced data analytics
Data collection is another benefit of digital transformation. Using the necessary data analysis tools makes it easier for you to track, collect, and analyze information about your customers for decision-making. In other words, it will help you improve your business strategies by examining online consumer habits.
What technology do you need?
Organizations are moving from legacy systems to cloud-based applications that provide the flexibility and scalability they need to meet business requirements. This includes Google Drive, Office 365, Salesforce, and Slack.
Artificial intelligence (AI) has long been an integral part of business as it can implement human intelligence. If a company has appropriately collected business data, it can create personalized experiences and automate many of its processes.
Internet of Things (IoT)
The main benefit of the Internet of Things (IoT) is that it gives businesses tremendous opportunities to streamline workflows and improve existing products. Voice assistants such as Amazon Alexa are prominent examples of IoT devices.
Augmented and virtual reality
Augmented reality (AR) and virtual reality (VR) give your company incredible opportunities. Using these technologies, businesses are developing training simulators, customer interaction tools, and more. The main advantage is that such realities immerse users in an experience that delivers high results.
How do you build a digital transformation roadmap?
To properly understand what your organization, employees, and customers need in the era of innovation, you need a specially documented roadmap. It should include:
1. Business valuation
Start your digital strategy roadmap with a detailed assessment of your company. This includes all of your strategic goals, KPIs, and all possible growth paths.
2. Competitor research
The next step is to understand who your biggest competitors are and what they’re doing better than you. Are they in the process of digital transformation? What solutions do they provide? What technologies are used? Such analysis helps to understand the market and find ways to promote your business more effectively.
3. Digital initiatives
It would be best if you prioritize your initiatives according to their value and anticipated effort. To test your digital solution, you can use a simple project with the desired functionality as a "trial version."
4. Delivery plan
Before creating a product, you will need to define all the processes for this development and delivery to make the common practices for your company.
5. Budget plan
As we know, many projects fail due to the wrong budget. When planning your budget, remember to consider delays and other critical issues that can make your current investment unusable.
6. Resource plan
To turn the strategy into reality, you need to have a team with the right skills and experience. Try to make an assessment of all your capabilities, as well as determine what kind of specialists you need to implement your digital initiative.
One of the interesting digital transformation examples is Microsoft. It decided to revise its strategy of building a future-oriented cloud networking business in 2014. The organization has shifted its focus from traditional software to the cloud.
This transformation resulted in a $1 trillion market capitalization and raised its share price from $38 in 2014 to $136 today.
How do you engage your team in digital transformation?
Digital transformation will also affect your employees. Let's take a look at ways to get the team involved:
Communication is a crucial part of any company, especially when it comes to employee engagement. Try to communicate with workers not only with words but also with actions. It's important to model the kind of behavior that you would like to see in your team. In most cases, it's challenging to get people on the side of change if they know that you are not following them. Lead them forward and show that their involvement is essential.
You should understand that for many professionals, digital transformation involves leaving their comfort zone. Let your team try something new without fear of any consequences if something goes wrong. Digital transformation builds an atmosphere of experimentation, and you need to understand and even support this if you want your employees to accept that.
3. Extra skills
In most cases, the digital transformation process can point to skills problems. To fill these gaps, you have the choice of hiring new specialists or improving the knowledge of your internal staff.
Continuing education can make a big difference in employee engagement—specialists who see that management is willing to invest in them and their abilities start to work harder.
Your employees need the proper feedback to continue growing. Clear goals and strategies can be linked. Provide the team with the necessary goals or development plans that include long-term assignments or a new learning opportunity to understand what is happening in the company and what is required of them.
Build your digital transformation plan right now
Creating the right digital transformation strategy can be a pretty easy task. With the right support and experience, you can quickly get used to change. In case you need help, MentalStack is your trusted friend for projects. We know how to help you carry out a digital transformation of your business. Contact us right now!