The term ‘Digital Transformation’ has been around for many years. However, more recently, the actual process of applying technology to the customer experience has become much more consequential.
Companies implementing digital transformation have one goal. That goal is to complete effective change to current business strategies and methods, finding efficiencies in all aspects of the business.
Digital Transformation: The Why
Depending on a business’s industry, the reasons for undergoing a digital transformation may vary. That said, there are a few general reasons why you would start a digital transformation:
- To match consumer expectations. Businesses need to be where their customers are.
- To gain market share or open new markets.
- Increase employee effectiveness. With the introduction of modern digital technologies, employees can shift their focus to other priorities knowing that specific tasks are automated.
- Improve data and information security.
- Strengthening business partnerships – technology is redesigning the definition of partnerships, streamlining more transparent, accurate, and timely workflows that benefit everyone.
- More efficient decision-making. With new technologies, companies can access massive quantities of data, helping to make more informed decisions in shorter time frames.
Within the Vervology 377 protocol, Digital Transformation is the final stage to building a ‘Platform for Success’. Digital Transformation is rethinking how a company uses technology to deliver the most value to its customers.
- 97% of executives say that the COVID-19 pandemic has sped up digital transformation efforts. As a result, digital transformation has taken on a new level of overall significance. [Forbes]
In 2021, 56% of companies worldwide began prioritizing digital transformation due to the shift to selling online [Forbes]. This shift changed how businesses marketed their products and services to their ideal customer and redefined consumer expectations. With the online landscape changing so quickly, companies now have to focus more on how they set and execute a strategy to ensure that their competitors aren’t growing faster than them.
The Four Different Types of Digital Transformation
A common misconception is that the digital transformation process is the same for all businesses and industries. Unfortunately, this viewpoint can limit any transformation’s growth and overall success. Therefore, when considering digital transformation, it’s essential to know the four different forms:
1. Cultural Transformation
Cultural transformation is the most essential form of digital transformation. It is the re-alignment of a business’s culture to its vision, mission, and core values to achieve its strategic objectives.
2. Business Process Transformation
Process transformation focuses on productivity: changes in the tools used to improve the speed and efficiency of how products and services are delivered.
A business process transformation produces the best results when the business has already set clear goals and objectives. This process will include a mindset shift while incorporating new capabilities, including implementing new technologies such as AI.
3. Business Model Transformation
Business Model transformation focuses on integrating technology to improve the value delivered to the business’s ideal customer.
For example, consider healthcare businesses having to offer the option to schedule an appointment online and provide virtual visits. As a result, they provide increased value by offering these services and meeting customer expectations.
4. Domain Transformation
This form of digital transformation is often the most overlooked.
Domain transformation involves researching new markets and moving the company into these new markets by expanding products and services to new customers.
How to begin your Digital Transformation
Digital transformations are a long-term investment. For a transformation to be successful, you must consider these three steps before starting the implementation process.
Step 1: Align Objectives with Business Goals
Setting clear goals and objectives is critical. Communicating these goals and objectives to the entire team and confirming that everyone is clear on the desired outcomes greatly increases the likelihood that your digital transformation will be successful.
The best course of action at this stage is to define your business’s current positioning and evaluate the existing resources available, such as:
- Time: Evaluate the amount of work time the team can allocate to research, planning, implementation, and overall management of the new system.
- Finances: Consider the budget requirements to determine which tools and technologies are available for the transformation. Then break down the overall cost, accounting for fixed and variable costs.
- Technology: Understand what new technologies the transformation will require and determine if current systems and processes will be able to integrate or migrate to them.
- Labor: Depending on the size of your business, you will need to consider the individual roles and people required to manage tasks and the overall project. Everyone will play a role in the implementation and management of your transformation.
Once the business’s market position and resources are defined, a draft plan outlining the objectives and goals for each step in the digital transformation process should be put in place and announced to the team.
With the team onboard and clear on the business goals and desired outcomes, it is time to move on to the second step of the process, picking the right strategic partner.
Step 2: Pick the Right Strategic Partners
Choosing the right strategic partners for a small business is crucial, as the right partners will streamline the process to deliver more valuable results. So, what makes a great strategic partner? It varies case by case, but as a general rule:
- They choose the best solutions for you, not those that satisfy their needs.
- They share a similar mission, vision, and values.
- They offer a service that includes exceptional support and assistance.
Because small businesses often have limited budgets, finding the right strategic partner may be more challenging. The key is not to focus on the price as much, but on the transformation the partner enables.
Finding the right strategic partner will take time and will require a lot of research. To keep the team engaged during the selection process and increase buy-in later, include them in the process, as the decision will ultimately impact them.
The strategic partner should align with the business’s primary goals, culture, and values. In doing so, the partnership will be mutually beneficial and should provide superior value to your customers.
Step 3: Prepare the Business
Preparing the business before executing the plan is vital for its initial and long-term success. Everyone in the business should be fully aware of and understand the purpose, goals, timeline, and specific roles in the digital transformation process.
Those whom the transformation will directly impact should be retrained and upskilled to meet the needs of the new systems. Doing so will increase the likelihood that everyone is prepared and capable of handling the changes these new systems bring, minimizing errors, and easing adoption.
Your Partner for Success
Digital transformation is a complex process; it takes time to implement all the steps. Vervology is an expert in the implementation of digital strategies and is your ideal partner to take you through the process of building your digital platform and online presence.
A digital transformation is not a static framework; it is a dynamic process that continues to evolve long past the initial implementation. By choosing Vervology as your strategic partner, you will work with a dedicated team who truly values your success, while providing exceptional service and scalable technologies designed to grow and evolve as you do.
Vervology is your partner for success in the digital realm. Book a meeting with Dave for a strategic partner with extensive knowledge and experience dealing with the entire digital transformation process and who values client success above all else.