Best practices to learn, where to start and how to accelerate your digital transformation
Customers are the most critical aspect of a business. As long as you have satisfied customers, there is a potential for your business to grow. Currently, digital transformation is one of the key factors contributing to customer satisfaction. Over the last decade, most companies have incorporated digital technologies to increase their profitability and revenue. According to statistics, 45% of the companies who benefitted from digital transformation saw an increase in their revenue. Further, the world should expect the digital industry to grow by 22.7% to $3294 billion from 2019 to 20205.
Digital transformation has been a critical contributor to higher profits and better customer experience for numerous companies. It improves the business-customer interaction. Hence, leading to higher customer loyalty and more significant revenue. However, the shift is not always easy.
Building a Digital Transformation Roadmap
Devising a roadmap for the digital transformation of your company can help make the shift. There are four different approaches:
This approach caters to maximizing the efficiency and effectiveness of your business processes. It requires a detailed map of the customer’s lifestyle and how a buyer interacts with your model. This allows for more effective marketing campaigns to attract customers.
This approach is focused on improving customer experience and designing customer-centric models. It primarily involves higher management. They personalize the customers and using techniques to improve their experience before and after their purchase.
The technology track tries to improve the information infrastructure for better cross-platform interaction. It also features data analysis to promote maximum growth. It should reflect upon your brand’s ideology and the landscape and give the customers a one-to-one experience.
The content approach combines both the information and the customers to optimize the overall business performance. The data is organized and arranged contextually to give an insight into the buyer activity.
Also, read Digital Transformation Consultancy.
Guiding Principles for Digital Transformation
There are three major principles of digital transformation that are further subdivided into sections. These include:
Firstly, to digitally transform your business you need to devise a digital strategy and define your shift’s core. It should cater to your vision and the goal you want to achieve. It is primarily directed towards the higher management of the business. This is because of their higher power in making decisions.
- Secure Senior Management
Firstly, get the CEOs on board with the transformation. It would be best to have strong-willed people in charge to make sure the transformation takes place successfully. The person in charge should be able to make informed decisions and be wary of the risks. According to the CDO of Aviva, CEOs should be “single-minded and aggressive”. They should have the capability of getting work done.
- Set Targets
The second step is to set realistic targets that you want to achieve. Do not go overboard with optimism and set unachievable goals. Start slowly and strategically work towards higher goals. Setting these targets helps instill discipline and work ethic in the team.
Investment is probably one of the most significant factors you need to consider for digitally transforming your business. If you do not have the money, the shift will not be possible. Although it increases profitability and revenue, the transition requires a heft investment. Make sure you have the funds before you delve into a commitment.
Launch and Acceleration
Launching an initiative is easy; however, keeping it stable and afloat is nothing less than a big struggle. The majority of the time, companies tend to fund third parties and launch their projects. However, these projects do not last long, primarily because of the lack of appropriate measures. To make sure your initiative does not meet the same fate, you should keep the following in mind:
- Lighthouse Projects
Firstly, start with a smaller project initially to win over the public. Offer rewards and make sure the risks are manageable. Focus on customer service and try to improve their experience.
- Launch Team
Secondly, hire a competent launch team under a CDO. A CDO can keep the team disciplined and make sure the deadlines are met. Further, he/she can also determine where to invest resources to get the best feedback.
After around two years, your company should be progressing better than its initial state. Therefore, try to sequence the initiatives in a way that reaps the most benefits from your transformation.
- Sequence Initiatives
A successful transformation becomes self-funding, allowing you to improve your profitability. Usually, companies start several initiatives at a time, and none pan out due to limited resources. Therefore, select a handful of initiatives and strategically transform them into the digital world.
- Operational Model
Upgrade your operational model after a while. In the digital industry, companies need to use the latest technology to stay on top of everything. Build a network of your workers and the resources to make informed decisions and lead to a successful result.
Digital transformation can be difficult. However, it is essential if you want your company to succeed. Customer satisfaction and loyalty are critical to high profitability. Following the above tips can significantly improve the process and make sure your company is ready for the change. It will also yield greater customer loyalty and better revenue.