Digital Transformation Framework for Your Business
In life, one thing is for sure: change is imminent.
We’re in a constant state of evolution. Not in the sense of monkeys becoming humans, but the human
mind expanding.
There’s no denying it. The analog era is fading… and fast! Right now, there’s immense technological
advancement and we’re still in the beginning of the digital era. There’s so much more to come!
Businesses that must succeed cannot bury their heads in the sand and pretend otherwise. As much as
we’re reluctant to change, we must acknowledge it.
Remember when the dreaded Corona hit the world? Most businesses had to face the reality. With the
need for social distancing, most had to embrace digital transformation because that was the only way
working from home could be possible.
Seminars became webinars, e-learning replaced classrooms, and remote work was a common word.
You see, Covid-19 pushed companies over the technology tipping point and transformed business
forever.
And that’s why the topic of digital transformation in business must be addressed.
However, to benefit from new digital technologies, companies need to develop a steady digital
transformation strategy related to data, processes, information, technology, human aspects, and lots
more.
In today’s article:
Types of digital transformation
Benefits of digital transformation
Digital transformation frameworks with examples
What’s digital transformation
It’s the integration of digital technology into all areas of a business to enhance existing processes and offer new and improved services and products to customers.
However, it’s not about installing the latest technology, but about customers and employees, and what they expect from companies.
Digital transformation involves building a roadmap for short- and long-term digital strategy transformation, emphasizing business outcomes.
For illustration, a caterpillar undergoes change to become a butterfly. While it can only crawl, a butterfly can fly. While it’s dull, a butterfly is beautiful. That is transformation.
Now, the only difference is that business transformation is a continuous journey, and identifying the first step is critical to having an outstanding digital transformation strategy.
Types of digital transformation
Digital transformation can take different forms. It can be in production. It can be in processes. It can be in sales and marketing. It can be in customer service. Therefore, it helps to keep abreast with the current trends in technological changes.
Here are examples of where digital transformation can apply:
• Optimizing processes.
• Redesigning internal processes to lower costs, improve quality and reduce cycle times.
• Creating new business models
• Adopting the most efficient and effective technological oriented operating model, and therefore bringing organizational transformation
• Digitizing products & services, for example, offering consultation services, software platforms, and digital products.
Benefits of digital transformation
In an online survey by Wipro Digital, more than 50% of the business executives state that the lack of a clear digital business transformation strategy is the greatest limitation to achieving their full digital potential.
The benefits of digital transformation include…
– Reducing human error
Man is to err. Especially when fatigue sets in. Using technology improves efficiency and accuracy at the workplace.
– Boosting employee excellence
With technology, a lot of focus is put on operating the tools, saving energy and time that could well be used to improve production.
– Increasing customer satisfaction
With high performing employees, and high quality production, customers are satisfied by the goods and/or services.
– Improving communication
For example, use of zoom and other digital platforms to hold meetings with other managers and staff of the company.
Digital transformation frameworks with examples
There are different digital transformation frameworks developed by consulting companies and here are a few of them:
1. Mckinsey’s Dx framework
McKinsey developed a digital transformation framework called 4Ds. It aims at increasing the value the company provides to customers using the 4 D’s of digital transformation:
• Discover: strategize based on insight
• Design: reinvent
• Deliver: do it
• Derisk: reduce operational and financial risk
2. MIT digital transformation framework
Digital transformation is a long process that requires resources, time investment and patience on your part.
The 5 building blocks of digital transformation are:
• Operational backbone
• Shared customer insights
• Digital platform
• Accountability framework
• External developer platform
3. Cisco
Cisco analyzed aspects of its business and started its transformation. They have changed how they do business by employing digitization in the following areas:
• Workplace: empower employees with collaboration technology
• Services: make their support services more connected with virtual spark rooms
• Supply chain: digitally connects multiple partners and suppliers, enhancing collaboration thus improving delivery cycles
• Security: with tools that analyze threats and manage traffic network
Examples of successful companies that have used digital transformation are:
>> Domino’s pizza, where customers can now order pizza online.
>> Netflix used technology to deliver entertainment via highly profitable streaming video services.
>> Amazon transformed from an online bookseller to an e-commerce world wide store that redefined the retail industry.
What to do next
The main problem with most companies is knowing what to do but not doing it.
Now that you understand the benefits of digital transformation, and the frameworks you can use to transform your business, what ought you to do?
Yes, you have to implement.
How?
1. Identify digital transformation objectives
Understand the why based on your goals, objectives and vision. The “reason why” is the motivation behind doing anything successfully.
2. Prepare your company for cultural change
Train your staff and integrate a digital culture among the organization. Develop a team mindset. Why? Because change will not be effected single handedly, no matter how much of a hard worker you are. You need to work together as a team (managers and employees), and that requires a unanimous effort of everyone in the company.
3. Seek out partners and hire top talent
Sometimes, there will be someone outside your company that knows better how to use a particular technology more than anyone else you have. Therefore, you’ll need to seek out such people and employ the skill that will give you more leverage and an unfair advantage in business.
4. Decide on the necessary technologies
What tools do you want to adopt? Not every tool applies to your specific business, so map out the strategy to use.
Examples of digital transformation technologies include:
– Cloud computing
– Mobile platforms
– Social media platforms
– Machine learning and Artificial intelligence
– Automation
– Internet of Things (IoT)
Where the digital tools can be used:
– Payment systems
– Customer relationship management (CRM) systems
– Online services
– Email software
– Accounting software for financial record keeping
– Project management software
– Supply chain software
– Virtual assistants.
5. Implement
Having a goal, now break it down into small steps, and start there. However, to avoid disappointment, do not expect to see everything change immediately. Be patient, focused and determined.