What is digital transformation?
Digital transformation is an outrageously growing form of transformation that has hit the era with various points. According to current statistical analysis, the pending digital transformation projects are to reach 1.78 trillion U.S. dollars.
Digital transformation essentially means transforming a sector while integrating it with technological advancements. Digital transformation means experimenting and getting comfortable with failure with tools that affect both internal and external processes. It fundamentally changes how you deliver to your customers along with the external and internal values of your company.
In order to achieve digital transformation, an organization must examine and often change all aspects of its operation, including:
1. Customer experience
2. Operational agility
3. Culture and leadership
4. Workforce enablement
5. Digital technology integration
Digital transformation is a slow process and not something to be obtained overnight. This process is a basic combination consistent of 4 different areas as follows;
1. Business Process Transformation.
2. Business Model Transformation.
3. Domain Transformation.
4. Cultural/Organizational Transformation.
1) Business Process Transformation
Business Process Transformation involves fundamentally altering your processes to meet new business objectives. This is the collaboration of your brand’s people, processes, and applications to become digitally focused. It is basically the process of the business’ big shift towards automation. Process Transformation is a step-by-step process where firstly, you first need to determine the business goals.
In addition, all stakeholders must be brought into the discussion and appropriate evaluations must be established. Thirdly, you need to implement the stimulation of the procedure in testing circumstances creating a mock process. Lastly, start with a small team and carefully monitor the implementation progress at first.
2) Business Model Transformation
Business model transformation is basically the umbrella term for incorporating fundamental changes in the business. How do you bring your project to life if you have a structure? Business model transformation allows a business to go innumerable directions.
The essential concept of a “business model transformation” refers to a courageous, sweeping change a company plans to make in order to increment the growth of the company. However, inverting to new business or operating models is just one example of a wide spectrum.
3) Domain Transformation
An enterprise’s digital transformation can be daunting and dramatic, but it is necessary for its success. Domain transformation is basically the successful sliding of one business to another area. It is basically an extension of your business’s current offering. By leveraging existing technology, innovations of this type increase top-line sales.
Domain Transformation is basically redefining the products and services your company sells. By doing so, the business is able to blur the lines between industries and create non-traditional competitors. The launch of Amazon Web Services (AWS) is one of the biggest examples of Amazon changing its market niche. The company has successfully challenged giants like IBM and Microsoft by launching their own cloud computing and infrastructure services.
4) Cultural/Organizational Transformation
This is the step of convincing everyone to get on board with this immense transformation. It is basically the acceptance of everyone behind the brand in order for it to flourish and deliver what you desire.
To transform a company’s culture, corporate objectives must be the driving force behind it. If a solid corporate objective is not maintained, there will be zero to no motivation to keep up the momentum creating a lasting behavior change.
Digital Transformation Strategy
Digital Transformation Strategy is a detailed plan in order to present a set of solutions that optimizes the digital transformation process of the business. In order to implement digital transformation in your business, you need to form the right strategy.
Following are the elements you need to implement in your strategy to align it with the right goals.
1) Market Examination
This initial step of the digital transformation strategy includes examining the opportunities and limitations for deploying digital marketing and technology in your organization. This step requires an overview of the expected improvement of technological enhancements brings in your business. It also includes an analysis of the competitor’s market.
At this step proficient SWOT analysis needs to be done involving the strengths, opportunities, and threats to the whole organization. Secondly, it requires examining your present digital customers currently to target them innovatively. Lastly, a full-scale market analysis on the competitor market is essential at this step.
2) Insight
Your company’s objectives should justify your digital transformation strategy. This step basically involves setting your business goals straight and alleging what exactly you want to achieve.
In addition to selecting strategic initiatives to achieve company goals, it involves a whole host of other activities. The action includes decisions about investment, resourcing, governance, and much more revolving around company goals.
3) Foundation Regulations
A set of methods and ideologies from different aspects needs to be included in this step. Bringing new ideas into life requires a set of correct ways to bring them together. This step identifies the focus on turning your plan into action.
Foundation regulations will include project plans and roadmaps of activities discussed. A critical step in transforming the digital experience and product is benchmarking and reviewing it from the perspective of the customer via the voice of the customer (VoC) and surveys. This will allow your customers to dwell in the experience of what your company has worked for.
