Finding the Right Digital Transformation Framework for Your Business

Digital Transformation Framework April 02, 2021

Mary Kate Morrow

Writer

A Digital Transformation Framework that Works

Digital transformation is a cultural change that has both short term and long term business implications. Business leaders in many organizations want to identify a digital transformation framework that works. Benefits digital transformation supply organizations are noteworthy, ranging from an improved customer experience to business process optimization. Business leaders are increasingly analyzing data driven case studies and successful transformation framework models for their own digital transformation journey. Strategic framework for successful digital transformations include-

1. Strategy

Transformation success is dependent on an integrated and adaptable business strategy. The business strategy must outline new ways a company will maximize value creation. Business strategies encompass more than digital technologies invested in. A great transformation strategy is both part digital and part people. The framework digital transformation experts recommend cannot be universally applied. Companies must apply a practical approach to fully experience the benefits digital transformation offers.

The digital age has demonstrated that new business leaders can gain a competitive advantage over long term business leaders. Accordingly, many organizations learned the hard way that digital disruption is a very real threat. However, the competitive advantage that successful digital transformation efforts bring new business owners is not permanent. Similar to how their successful digital transformation disrupted long term organizational leaders, another new business threat can arise. In short, companies need to adjust digital strategy as cultural change occurs in order to retain a competitive edge.

Different digital strategies and accompanying transformation efforts can have vastly different results. As such, there are various different digital transformation strategy frameworks to choose from. The classical digital transformation strategy approach is best for low malleability markets with high predictability levels. The classic digital transformation strategy approach is a public sector staple. Alternatively, the visionary digital transformation strategy approach is best for environments that are both malleable and predictable. The shaping digital transformation strategy approach embraces new technologies and the malleable and unpredictable market.

2. Customers

Case studies reveal that organizations that enhance both customer experience and digital operational excellence can outperform others up to 16%. Unfortunately, only 23% of organizations receive the benefits digital operational excellence and customer experience hybrids offer. Companies need a customer centric digital transformation framework for value proposition optimization. Customer centric digital transformation framework considers everything from social media to digital marketing initiatives.

The customer journey is a foundational aspect of customer centric digital transformation framework. Instead of focusing on business processes primarily, customer expectations are more focal. Throughout the transformation journey customer experience and customer service must remain a top priority. Decision making that is customer centric focuses on value proposition and customer expectations satisfactorily met. Considering that many companies manage a multitide of customer journeys simultaneously this can be difficult to accomplish.

Many organizations realize late in their digital transformation journey that the customer experience and customer expectations were neglected. Too heavy of a focus on digital technologies can overlook customer service and stray from a customer centric framework. For example, artificial intelligence and machine learning capabilities are frequently used for business process automation. However, if these business processes negatively impact customer experience or customer service abilities then what was the point? To avoid this, companies need to establish and maintain a customer centric digital transformation framework.

3. Growth

Ambidexterity is essential for business growth and maximizing bottom line profitability. Finding a balance between exploration and exploitation is commonly referred to as ambidextrous. However, case studies estimate only a small percentage of businesses achieve ambidexterity. According to digital transformation experts, the perpetual search trap and trapped in past success phenomenons are largely to blame.

Avoiding growth traps is a practical approach to this issue that many organizations are embracing. The switching approach consists of business leaders continually shifting cross functional teams from the exploration stage to the exploitation stage. The end of the exploitation stage is typically at the end of a new product adoption cycle. The end of the exploration stage is typically at the start of substitution technology.

The separation approach consists of separate units formed for exploration and exploitation objectives. The ecosystem approach sources ideas externally and is valuable for a new business or one without many resources. Extorting the benefits digital transformation offers necessitates consistent growth and adaptability. As a result, transformation frameworks must not only be prepared to respond to disruptions but also avoid them. Data analytics and big data can help businesses exploit core businesses while exploring growth opportunities.

Key Takeaways for Digital Transformation Framework

Digital transformation frameworks can significantly assist organizations with their digital transformation efforts.
An integrated business strategy, customer centric approach, and growth opportunities are all digital transformation framework suggestions.