Do you really need Digital Transformation?
The Time for digital transformation is now | The new normal is digital |Consumers behaviour has changed| are things we see daily on the news, but what does this mean? Do you really need to transform? I like to think of digital transformation as using technology to reimagine how you do business and add value to your customers, but there are many definitions and ways companies implement digital transformation. Innovation Evangelist Brian Solis defines it as
The realignment of, or new investment in, technology, business models, and processes to drive new value for customers and employees and more effectively compete in an ever-changing digital economy. Brian Solis
Meaning that it is constant, holistic and that your customers and employees are at the centre of it. It also varies according to peoples perspective, digital is everywhere, you could transform aspects of the business but not necessarily transform the business. You can focus on processes, the use of specific technologies or platforms, there is a lot to pick from and not all will benefit your business. The key is to understand what technologies will help your company deliver better customer interactions which will translate to more sales and allow you to stay in the market for long.
Digital transformation is a process that closes the gap between modern customer expectations, and what an organisation can actually deliver. Ian Patterson
A true transformation requires reshaping the company culture and adjust its capabilities to one that exploits digital technologies in innovative ways to create new value and competitive advantage, one way to do this is to focus on your customers and fully understand their needs.
If your business is currently profitable, then look at the current market and ask yourself, Is your business at risk to eventually become obsolete? to find the answer, you’ll need to carry out a full business analysis and map your customer journey, both very straight forward tasks if you know what questions to ask.
Do you really need to transform? Well, it is no secret that technologies are emerging quickly and customers are rapidly adjusting at new ways of transacting. If you think about your local hardware shop, their opening hours and stock limitations vs Amazon, Alibaba or Wish offering, anytime orders, home delivery at competitive prices with a wide stock you can see how these new ways of operating can put local businesses at risk.
It is equally important to look into your company resources (capacity and capabilities) and the possibility of using technology to adopt new ways of working, instead of just using systems to accommodate existing business Processes, think on how those tools can add value to your offer and the way you operate.
You may think as a business owner or leader, things are good as they are and there is no need to radically transform. Then I recommend you to look outside on how the environment around you is changing and how your organisation may need to adapt to developments beyond your sector, think on ways on how you can enhance your current capabilities with technology, provide better value to your customers, make your business more profitable.
Spend time understanding your customers and their journey, structuring your processes and operations to be flexible and quickly adapt if that certainty ever vanishes. Going Digital doesn’t need to be overwhelming, it is essential to have a clear vision, strategy and values that will guide you.
If instead, you realise that digital transformation is key for your company to survive, Plan for it, determine your transformation readiness first, understand your current capabilities and digital assets, create a clear road map and prioritize; not everything needs to be done at once.
Remember to engage people for a transformation to be successful, your teams need to feel happy to provide feedback at every stage and be ready to embark the journey with you; communicating the goals of the transformation will help guide the efforts and ensure focus. Testing your ideas will validate them and provide guidance for improvement, ask for feedback from customers and teams and always remember adaptability is key.
Natacha Santiago