What does it mean to digitally transform your business?
Digital Transformation is a business strategy, by which a business leverages the latest and most advanced technologies, to upheave revenues, build competitive advantage and increase their market share. According to capgemini consulting, Digitally transformed business are 26% more profitable than their counterparts.
Furthermore, here are more numbers of the digitally transformed businesses according to the huffington post:
Companies which are digitally transformed have advantage in three main areas:
- Scale is delivering more of the product or service profitably for more customers.
- Speed is delivering the product or service with faster speed
- Scope is having a wider catalogue of services and products to bring value to customers.
How does digital transformation happen?
Let’s go through an overview of the process of digital transformation.
Digital Transformation begins with a full analysis of the company, that is, analyzing each and every primary and/or supporting business activity processing all data generated from them to date, to be processed and analyzed for descriptive, prescriptive and predictive diagnosis of each activity.
Throughout this process, the business executives can identify innovation zones and areas where optimization can occur to stop cost leakages, and eliminate process frictions, which hinders and affect the service time, product quality, customer experience, operational inefficiencies that down thrust the whole business vehicle.
After identifying innovation zones, executives can frame a digital vision for their company, in which digital technology can be utilized eliminate bottlenecks, saving time, costs, redesign the customer experience and optimize the business operations, while, most importantly constantly generating information data, for continuous analysis.
These tools can take the form of ERPs, Marketing and Sales platforms, Internet of things platforms, and so many other applications to re-envision operations, customer acquisitions, retention, monetization and combining both to build a digital business model, sometimes referred to as an Information Enabled business.
After building up the company’s digital capability, now it’s all about driving the advanced company towards unimaginable growth. Many digital transformation efforts fail due to the lack of buy-in of Employees and stakeholders, and this is why it's empirical that a digital transformation endeavor is led by all stakeholders from the beginning to make the transformation smoother.
By the end of the transformation, companies would have a powerful, clear and visible digital vision, with their newly installed digital tools, are contributing to a more seamless customer experience, faster customer acquisitions, improved engagement, huge cost reductions, smarter investments and opened up new monetization channels.
Furthermore, more agile and flexible operations, with minimal inefficiencies and faster tasks concluded, all happening in a very measured way, constantly exploring and enabling innovation opportunities, for a better competitive advantage.
Every primary and supporting function will be data led, with a powerful digital culture, breaking operational paradoxes such as, control versus innovation or standardization versus employee empowerment.
All the company will be driven towards that digital vision, building and constantly optimizing,for maximum growth and bigger profitability.
Digital Transformation is not just about implementing new technologies, it is about completely altering the perspective on how things should get done, and leading the technology to work for the business, and not, like in so many cased the other way around.
Here’s a video that summarizes digital transformation