While most of us may be familiar with the words Digital Transformation, we may not be aware of its absolute necessity in today’s time, especially since Covid-19 has become a part of our lives.
Digital transformation has opened doors to multiple opportunities for innovation and how businesses can reinvent the way their services are offered.
In this blog, we have summarised its need, digital transformation strategies, and examples for a better and comprehensive understanding.
Also, do make sure to stick around till the end for a solution on how you can get started with digital transformation for your business.
For all the unversed, here’s a breakdown of what a digital transformation actually is.
What is a Digital Transformation?
A digital transformation is the improvement of existing processes or the introduction of new ways of conducting business activities by making use of digital technologies that enhance a customer’s overall experience which ultimately leads to higher conversion rates for the company.
Digital transformation means nothing but redefining business processes in accordance with the new digital era.
Process, technology, data, and organizational change constitute the 4 main areas of digital transformation.
While the 3 main components of digital transformation are stated as rebuilding the operations, the relations with customers, and the procedures.
Now that we know what it is, let’s see why so many businesses are adopting digital transformation:
Need & Importance of Digital Transformation
The utmost reason why a business should immediately adopt digital transformation if they haven’t already is because of the massive shift of everything going digital.
People were already adapting to the digital world in the last few years and the coronavirus pandemic made sure that we adapted to it well and good.
With nowhere to go and our healths to protect, we were compelled to start shopping online, order food online, see our loved ones virtually & even carry out banking requirements on the Internet! This strongly suggests that if you don’t hop on this bandwagon, your competitors surely will.
Secondly, innovations in the technology space are expeditious. Technologies that worked in the past may not necessarily show results today. Thus, to be up-to-date with technological advancements, a digital transformation is important.
Another crucial aspect of considering a digital transformation is the need of your consumers. Businesses are successful when they place the needs of their customers in the center and as we previously mentioned, consumers want everything at the tip of their fingers.
Thus, to meet the expectations of your customers and deliver satisfactory services, digital transformation is the solution.
In fact, an important thing to note is that the forthcoming generations are going to grow up in this digital age. To be prepared for the future and be able to seamlessly integrate your business with the demands of the coming generations, it is vital you adopt a digital transformation today.
It should be visualized as a long-term investment of your company.
For the benefit of our readers, we have listed below what digital transformation strategies are and few examples:
Digital Transformation Strategies
A digital transformation strategy is a plan regarding the series of actions that need to be taken to integrate digital transformation smoothly into your business functions. The heart of this strategy is the goals you wish to achieve.
A well-formed digital transformation framework ensures that the efficiency of the strategy is not lost in this long-term process with evolutions at certain places.
Note: If an uncertain change is likely to occur to your employees/customers in light of the digital transformation, make sure to keep them informed. Assign a trusted authority to take care of it.
Like any other strategy, it is important to keep checklists and progress trackers at each minor goal in the digital transformation strategy to ensure proper flow.
A digital transformation is a major change in a company and thus, the strategy has to be formulated carefully and realistically. Digital transformation tools must be made accessible to all those designated to work on this transition.
Let’s look at a few digital transformation strategies:
- If you’re an E-commerce or Financial institution, improve your cybersecurity.
- For all digital transformation systems, increase the allocated budgets on its R&D
- Increase expenditure in developing user-friendly digital systems
- Use data analytics for improvement of digital systems
Now, let’s see a few examples of Digital Transformation:
- Virtual Assistants
- Fraud detection systems
- Cloud computing
- Artificial intelligence (AI)
- Online automated processes keeping customers’ need in mind
Bonus Read: To see how companies are investing in their online presence and benefiting from digital marketing strategies, check out these case studies – Volkswagen’s Case Study, Nestle’s Case Study, Amazon’s Case Study
Challenges of Digital Transformation
There could be many possible reasons for the failure of a digital transformation but the below mentioned are the 3 main challenges that companies need to overcome:
➔ Lack of Communication
A digital transformation is a massive initiative in any company. All specifications around the framework and guidelines must be communicated well to the concerned stakeholders. The whereabouts of before and after the transformation are equally important.
➔ Poor Performance Tracker
Performance needs to be tracked at every stage of the transformation because it helps you change course if any problem arises and ensures that the set goals are met. Success will only follow if the transformation is monitored at every step.
➔ Assigned Employees
McKinsey’s 21 keys to successful digital transformation involves ‘people’ in almost 16 of them. This strongly suggests that people are the most important factor of the digital transformation initiative and thus, having the right people and ensuring a good work culture for them is vital.
How to get started with Digital Transformation?
Now, if you have checked the case studies above, you must have realized that there are many ways a company can bring digital transformation. You can get started in-house but if you wish to have a more comprehensive & advanced approach towards it, you will need a specialist.
That’s where we’d like to mention IIDE. IIDE offers customized corporate training in digital marketing which is curated for each sector specifically by industry experts to provide a 360° insight into the digital world.
The pandemic has made us realize that a strong Digital Marketing Strategy is how any organization can grow in a digital landscape. IIDE takes into account the requirements of your company. Their corporate training program has helped several top companies like Volkswagen, Abbott, Asian Paints, L&K Saatchi & Saatchi, Mahindra & Mahindra, Cipla, etc to achieve digital transformation with profitable results.
If you are looking to digitally transform your company, write to IIDE for a personalized demo!
We hope this blog has helped you understand the importance and need for a digital transformation in today’s time and has served with all the queries.