Why Digital Transformation Should Matter to Your Company

Adapting to the future

The world is never quiet. Time moves quickly. Disruption radically changes everything, from geopolitical stability and environmental issues to cultural polarization, economic imbalance, and technological innovations impacting societal change.

As the world continues to evolve and the generational divide gets thinner, we face a new generation — Generation Alpha, the first to be born entirely in the 21st century. These are the children of younger millennials and older Generation Z. They are expected to be the most technologically literate, materially endowed, and longest-living ever to inhabit the planet.

Big brands are already gearing up to tap into this wealth of trendsetters. Digital transformation will be paramount in how businesses engage with generations that have grown up with technology.

With rapid global change, we could witness the demise of traditional paper and coin-based currencies with the widespread use of blockchain and cryptocurrencies. Likewise, we could also see the advent of other technologies, such as machine learning and artificial intelligence for self-driving cars, drones, or augmented reality for real-time information in text, graphics, and audio.

You and your teams must ask how you will develop a digital transformation plan for your business and employees. What are your objectives? How will your new digital business model meet your customers’ needs, align with industry requirements, and enable your business to expand and compete in this rapidly changing world?

Although there is no step-by-step guide on preparing a business for digital transformation, leadership must consider some essential technical and business considerations.

Know your digital DNA

Digital transformation can mean many things to many people. Sometimes, people mistakenly equate digital transformation with a simple technology update. For some, it is going paperless, having a powerful real-time analytics dashboard, leveraging cloud technology for data backup, or integrating tablets and mobile devices within your office environment.

While these examples are subsets of digital transformation that focus on technology, another key question is why digital transformation should matter to your company. In a recent Gartner research study, 56% of CEOs surveyed said that digital improvements have already led to increases in revenue. Rethinking your processes and delivery methods can pay off.

Start with your core competencies

As you build your strategy, take time to understand what you want to improve and why. Are you looking for:

• A Better Customer Experience
  Offer better service to your customers and provide them with effective and connected customer experiences that will differentiate your brand from competitors.
   
• Modernizing Your Company Culture
  Empower employees to work in new ways to become more proficient and productive in their daily tasks. Adopt a culture of experimentation, share ideas, and take measured risks to spark innovation.
   
• Streamlining Your Existing Processes
  Streamline redundant processes — operational or otherwise — and create more adaptable, efficient, and collaborative processes.
   
• Increasing Your Overall Efficiency
  Digital processes allow the quick flow of inter-departmental information while eliminating redundancy and reducing time-consuming workflows.

Focusing on your core competencies can give your business a competitive edge in your industry and market.

Focus on the business, not the technology

Digital transformation is a mindset. It is not about a particular technology but an amalgamation of strategic thinking, a new or revised business model, creating a better experience for your customer, and understanding what technology or technologies will best enable your business to achieve success for your customers.

There are also enormous differences per industry, region, and organization. What makes sense in one region may not make sense in another.

Current statistics underscore senior leadership’s importance in replacing traditional business models with newer, faster, more innovative approaches to deliver what customers want and need from their vendors.

• 54% of companies indicate that digital transformation is a top priority.
• 70% of companies either have a digital transformation strategy or are working on one.
• 21% of companies think they have already completed digital transformation.
• 60% of companies that have undergone a digital transformation have created new business models.
• 89% of all companies have already adopted a digital-first business strategy or plan to do so.
• 39% of executives believe their companies will get the most value from digital transformation initiatives in three to five years.
• 52% of marketers worldwide say driving growth through digital transformation is their top strategic focus.

Accelerators of innovation

Technology is only a part of the digital transformation equation. Technological evolutions and technologies, ranging from cloud computing, big data, advanced analytics, artificial intelligence, machine learning, and mobile to the Internet of Things, are enablers of digital transformation. Their success rate depends on how they are implemented and used in the business strategy and how they will evolve with your customer needs and products/services lifecycle.

As an organization begins the transformative stages of going digital, the typical battle for resource control between IT departments and business leaders must be put aside. Leaders and teams must work together and share the digital mindset.

Your entire company needs to embrace the concept of how digital platforms, third-party technology solutions, or custom applications will create the best possible technological infrastructure that is not only multifunctional but robust. The central role of the organization is to connect the dots and overcome internal silos in all areas to reach all the different goals and objectives — interconnection is the norm.

Continuous Next

With apparent setbacks in 2020, your organization can no longer afford to put off digital transformation. For companies that have started their digital transformation journey, many are struggling with the idea of whether there is an end to digital transformation. When do you reach this situation? When can senior leaders say they have completed or achieved the digital transformation, or what is the next phase?”

In 2018, Gartner coined the next phase of digital transformation as “Continuous Next.” Gartner believes Continuous Next should focus on the capabilities needed to keep up with continuous change driven by technology. Continuous Next is a formula for success in a world that is constantly changing — through and beyond digital transformation.

Most business experts agree that digital transformation is a continuous process. Companies cannot complete the transformation or claim they have completed it. The logic? Technology constantly changes while impacting everything around it, from our geopolitical spectrum to the environment to societal changes.

Now is the time to start your digital transformation. Act as if your competitors and your customers (the next generation) are already gearing up for the post-digital era.

Contact us today for more on ensuring your digital transformation efforts are focused in the right direction and how to successfully prepare your business for the future of digital commerce.