Digital Transformation is an innovation of new technology and ideas. It basically represents a new modern technology that can transform the existing business products or services including new innovative services.
Digital Transformation tells us a different way of interacting with the business customers and growing with them (Our customers can be normal people, company employees, or different enterprises). And provides us a tool to compete with competitors and allows us to meet the requirements of the modern era.
In other words, we can say that Digital transformation is observing and identifying the needs of the customer to create a good user experience. Therefore, to create a good experience and meet the needs of customers, we need to continue with this and adapt to new changes.
Types of Digital Transformation
1. Leadership Capability: An Enterprise should have the ability to grow in the market in a perfect systematic way. Also, it is capable to not only continue with the existing product but also launch new products to attract different-different consumers.
2. Customer Experience: Customer Experience is a different positive way for knowing about a particular organization or Enterprise. But the main thing that arises is that all the customers have their own way of analyzing, differentiating, and owning a particular product.
3. Employee Experience: Employee Experience is also very important as customer experience. Because Employees can tell their organization more accurately the benefits and drawbacks of a particular product and also provides more clues and data which helps in growing the business.
What is the need for digital transformation?
Digital Transformation plays a different role for every part of an organization, the organization that starts linking and growing with this will be able to highlight themselves more properly. Otherwise, the organizations that work on their previous systematic ways will stay constant or even fall behind. So, it’s better to continue and adapt to the new technology, i.e., Digital Transformation.
Advantages of Digital Transformation
1. Increases Productivity, Reduces Upfront Costs: While adopting Digital Transformation, you don’t need to spend more time and effort and also you don’t need to hire more employees. It provides you multiple digital resources and tools which makes the costs less.
2. Improves End-User Experience: Helps in improving the customer experience and provides the services that will attract them in a different manner like emails, live chat, mobile apps, offers, discounts, etc.
3. Highlights your organization: Makes you more and more productive through the digital resources and tools in an efficient manner that will help you to compete with your competitors and enables you to highlight yourself more.
Different Stages of Digital Transformation
Since if we are discussing Digital Transformation and want to adopt this in our business then, we must have to know how it really works.
Therefore, Different stages of Digital Transformation are:
- Business As usual: In the first stage, they usually observe and identify the systematic way of the organization and also evolve their mind completely into it to make a rigid solution.
- Present and Active: In the second stage, they basically conduct few experiments in order to make a little bit of change that will help them to identify it more accurately.
- Formalized: Then, when we know that the experimentation is good to make with good intentions, then we have to make all the things clearer and need to make a bold decision.
- Strategic: During this stage, multiple departments or employees from different areas combine together and place different ideas from their side, and thus, they are able to make different strategic decisions.
- Converged: Now, At this stage, it is the time to implement all the strategic plans with the help of team members and you need to make sure that the team you had chosen has been properly evolving into the business.
- Innovative and Adaptive: In this stage, all the executives and leaders will check the plans that had been implemented are good to take or not. They also observe that which of their strategies are more innovative and which of the strategies are good to adapt or not.
Why does Digital Transformation fail?
There are many reasons for the failure of Digital Transformation. But there are 3 major reasons:
- People – Digital Transformation can be failed by people. It basically means that Companies failed to bring the correct employees who have good digital skills, experience, and understanding. Basically, there was no right talent and it fails.
- Communication – Communication is very much important in every part and Since there are lack of guidance and interaction among the team members and there is no proper way of explaining why and how to do the work. Even after proper communication, if the team does not have proper goals together to work upon the project then, the digital transformation fails.
- Goals – There are many companies whose goals are not clear and they didn’t even define the proper meaning of “success” for them. Companies should have proper Key performance metrics (KPIs) then only they will be able to observe the daily performance. Also, they have to monitor the daily effects.
The strategy of Digital Transformation
For continuing with Digital Transformation or any other technology, an organization should have a clear perspective and clear goals. Their business goals define the proper strategy of how they will do the work and what is their exact aim.
Making a Digital Transformation strategy is beneficial and effective as it can improve the efficiency of doing the work and also makes all the processes clear which makes the clear track of performance metrics.
A proper strategy will also help the organization to find out how the transformation is affecting the customers and the direct market. Ans they have to start internal training for the team members to make them the leader publicly. They need to make sure that they should continue only with the right talent and trusted leaders so that it will generate proper momentum.
Small feedback by customers should also be put as an accomplishment for the team members which makes the proper progress tracking.
Challenges of Digital Transformation
Challenges are the major and the finest part of Digital Transformation as whenever we want to transform something, we need to make sure that the challenges will definitely arrive and we have to solve them easily. Therefore, if we talk about the improvement and growth of the business, we need to make sure that it includes challenges such as:
- Makes a good customer experience.
- Need to increase internal productivity first.
- Highlight yourself and have the ability to compete.
- Increase sales/profits.
Pillars of Digital Transformation
If you want to improve your business with the help of digital transformation, then first you need to focus on how you can actually do it, basically, you have to focus more on the support system i.e., the pillars like:
- Vision: There should be a proper and clear vision to achieve goals and success. You need to make everything very clear to do the proper task and why and how you should do the transformation.
- Mindset: Mindset is one of the most important pillars at all. If the person has a clear mindset that he wants to achieve this and he can do it then no one can stop him from achieving that. Similarly, A company should also have a clear mindset that after continuing with digital transformation, it will be definitely able to achieve its goals and success.
- Leadership: A leader must have the power of leading of all things. It is important for leaders to monitor all the things and the different plans and including that, they must a have to understand the outcome of a particular task. As a leader, he must have the responsibility of observing the proper performance of the work.
- Experience: If you are preparing to transform your business at a higher level, then you must have to observe the previous experiences, expectations, and journeys of the customers so that you will be able to transform all that things. Basically, you have to lead with experiences and create a deep connection with customers.
Wrap-Up
Therefore, to continue with the digital transformation you must have a clear and proper mindset in your mind to achieve success. And Trust Me!! this is one of the best ways of building for building up your business at a higher level.