DT 101- A Digital Transformation Guide

Digital Transformation Guide- 5 Steps to Success

In the digital age and in the business world, digital transformation is a hot topic. Both long term business leaders and new business owners recognize the potential digital transformation holds. Case studies estimate that world organizations will invest $2 trillion towards digital transformation by 2022. Unfortunately, $1.4 trillion is estimated to be invested in digital transformation initiatives that do not meet business expectations. In order to avoid wasting resources, business leaders must understand digital transformation best practices and strategies. 5 steps for digital transformation success include-

1. Vision

Both business transformation and digital transformation efforts necessitate careful analysis and a clearly established vision. In order to accomplish this, real time business models and business processes must be examined thoroughly. Distinct departments will require different digital technologies and experience different benefits digital transformation offers.

Business leaders should interrogate their digital business transformation objectives for separate departments carefully. For instance, the business technology necessary for the supply chain will differ from social media department requirements. Separate departments also have varying goals, focuses, and objectives. While customer service departments may have a customer experience focus, social media departments may have a user experience focus. Feedback from department heads can help guide digital transformation decision making conversations.

2. Prioritize

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Business leaders can help guide digital transformation through prioritization. Attempting to implement too many new technologies at once can prevent successful digital transformation. A proper digital transformation framework will evaluate where digital technology is the most valuable. By prioritizing business processes, transformation initiatives can start on a smaller scale. As the benefits digital transformation offers become clear and key performance indicators accomplished, new business processes can be addressed.

With an abundance of case studies and best practices available for reference, decision making is much easier. Another transformation important tip is to keep the transformation strategy focused on people. A successful digital transformation is only successful due to its implications on human beings. A successful digital transformation strategy is customer centric while supplying digital solutions to workers.

3. Management

For everything from business transformation to digital transformation, strong business leaders are necessary. Change management best practices are often associated with the term digital transformation. The change management methodology is often implemented during digital transformation strategy.

With 51% of business professionals viewing culture as hindering their digital transformation journey, change management clearly benefits digital transformation initiatives. Best practices of change management include promoting communication and limiting disruption. Case studies demonstrate that change management communication best practices increase the success rate of digital transformation.

4. Investment

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An excellent business model and business process understanding are crucial for successful digital technology investments. Established business outcomes guide digital investments while helping to pace business leaders. Careful decision making is necessary regarding the digital platform investment. While one transformation strategy may necessitate a new digital platform, another may adjust existing technologies. There is also the choice to implement or build new digital technology platforms.

Although the digital age brings with it an abundance of digital business tools, not all are necessarily the right choice. A successful digital transformation does not focus on the flashy features of technology that are not actually helpful. Although artificial intelligence such as machine learning capabilities is appealing it must also be applicable. Otherwise, a digital business transformation can quickly become expensive and ineffective.

Carefully weighing the benefits digital transformation tools offer versus their investment costs is crucial. Many companies lose sight of the fact that return on investment is still focal during digital transformation initiatives. New technology is not a complete digital solution. Digital technologies invested in are but one portion of a digital transformation strategy that is well crafted.

5. Culture

Case studies demonstrate that companies focused on culture are 500% more likely to achieve breakthrough performance. Change management best practices are essential for creating and maintaining a successful digital transformation friendly culture. In fact, the lack of proper change management is often cited as the reason a digital transformation initiative failed. As such, business leaders must consider strong communication during digital transformation important to overall success. Without great communication and established culture, it is impossible for business leaders to properly guide digital transformation.

Successful digital transformation is not possible without buy in from employees. Encouraging employees to not only engage with new digital technologies but also commit to them is a top concern. Demonstrating how digital technologies benefit business processes and workflows is a great place for business leaders to begin. Without encouragement, employees can easily overlook the benefits digital transformation offers and maintain business processes that are outdated.

Change management and a digital transformation culture must also be carefully maintained. Establishing a digital transformation culture is useless if it is not properly sustained. Maintenance of digital transformation culture requires both reinforcement and consistent check ins. As such, business leaders must make sure to communicate regularly with everyone from the supply chain to social media employees. During these meetings, business leaders should evaluate the benefits digital transformation is supplying in addition to encouraging feedback.

Key Takeaways for Digital Transformation Guide

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  • A digital transformation strategy must consider everything from customer expectations to data analytics capabilities.
  • There are various best practices that all digital transformation initiatives should consider.

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