Already a key strategic initiative, digital transformation involves making a change in strategy in order to make your business more agile and profitable. It's about making your digital presence count and taking advantage of the opportunities offered by new technologies. Digital transformation is about getting digital technology to work harder for your business, so you can make profits and grow more quickly. Digital transformation is an imperative for a business success in today's digital economy.
Digital Transformation - The Complete Guide 2021
What is Digital Transformation?
Digital transformation is the application of digital technologies to alter the way a business operates. Digital transformation, sometimes called digitization, is not limited to technology or even IT advancements.
Digital transformation, sometimes called digitization, is not limited to technology or even IT advancements. Rather, digital transformation is the application of digital technologies to alter the way a business operates. Digital transformation broadly represents any organization's attempt to change its operational processes through innovative uses of digital transformation frameworks and digital transformation strategies.
Digital transformation isn't limited to introducing new web or mobile applications. A company can use digital technology to transform processes and procedures that do not initially involve the customer, such as those related to organization or marketing.
Digital transformation is still in its infancy, but it's clear that large organizations are already underway with leveraging new technologies for their own business purposes. Every industry has the potential to be transformed by digital technology and reap the benefits that this brings, such as improved services to customers while saving money and time.
According to research by Statista.com, worldwide spending on digital transformation technologies has been steadily rising over the past few years and it is expected to grow even more by 2024. See the chart below for more specific spending projections.
Successful digital transformation is achieved when these technologies are applied with a clear goal in mind, namely increased revenue, more innovative products, or opportunities for growth. In essence, successful digital transformation is all about making the most of emerging technologies to improve an organization's operations and ultimately increase its competitive advantage.
Planning Digital Transformation
The first step in planning a digital transformation strategy is to determine your business goals. Ask yourself what you want to achieve with this initiative, such as reducing costs or increasing revenues. Once you have established those goals, map how technology could help you meet them. For example, if you want to increase profits then cost-cutting measures may be more appropriate than investing in new services and products. Don't forget that the customer is at the center of these decisions since it's their needs that must be fulfilled by any successful digital transformation program.
In order to successfully plan a digital transformation for your organization, you need to form a cross-functional team working together on this effort with an integrated deliverable schedule and process re-designs where needed.
Digital transformation isn't the product of a single department or group within an organization. Instead, it's something that is accomplished by all parts of an organization working together and using technology in new ways. Digital transformation requires a holistic effort from your company as opposed to initiatives being driven by individual departments or teams with no clear connection or measurable results that can be applied to the larger business strategy.
How to Choose the Right Technologies Needed for Your Transformation?
Picking the right technology for your digital transformation program is just as important as mapping out your business goals. Many leaders have chosen to go "all in" on cloud computing, but there are other technologies you should consider, such as analytics, mobile apps, or social media. It's important to understand how different technologies work together and not focus too narrowly on a specific option since it might become obsolete quickly. Focus instead on developing a solid strategy that includes several of these emerging technologies and allows room for adaptation over time.
Top technologies have begun to emerge among the companies that have begun the digital transformation process, including big data/analytics, which has been utilized by %58 of the companies that have begun a digital transformation. Below are the top three technologies of digital transformation.
Digital Transformation: Digitization and Data
The importance of data in digital transformation cannot be overestimated. Data is the lifeblood of all businesses that want to succeed in a digital economy. Data can be seen as the product of effective digital transformation initiatives that are already taking place. Simply put, if you're not collecting data, then you're not going to achieve your goal of being a successful organization working in a digital world.
Data should be collected on all aspects of your business including customer service statistics and satisfaction levels, marketing performance, and employee morale. A company's success will depend on having access to this type of data and analyzing it from various angles.
Digital transformation doesn't happen overnight, and there will always be areas for improvement as time goes on, but it's never too late to start. Although many companies and organizations are still making their way towards a digital transformation, there are some success stories that show just how beneficial it can be.
Digital Transformation: Change Management
The importance of change management cannot be overstated. People resist change, even when it's for their own good. So you need a plan to make the transition as easy and painless as possible. People's roles, relationships, and responsibilities will likely change in order to accommodate the digital transformation, so it's important to reach a consensus before making these changes. Communication is key, and if people don't understand the vision for digital transformation or how it will help them personally, then they're probably not going to get on board.
How to Lower Risk When Going Through a Digital Transformation?
Digital transformation is all about embracing change. But not just any kind of change. Change that's done well and with a plan in place to make it as painless as possible. Digital transformation is an ongoing process, so there will always be room for improvement. But the sooner you start, the better off you'll be.
These are three ways for tech professionals to lower risk when going through digital transformation:
1) Choose a technology that has staying power such as analytics or mobile apps.
2) Focus on developing a solid digital transformation strategy that includes several emerging technologies and allows room for adaptation over time.
3) Don’t forget about data - without data, digital transformation isn't possible!
Digital Transformation: Benefits & Results
The benefits of digital transformation are numerous. Among the most important is that it makes your organization more agile. Digital transformation means you can innovate faster, create new products, services, or processes with less risk and expense - and do more with the data you collect. It also provides a way to retain top talent who want to work in an environment where they're using their skills for innovation without being trapped in a job that doesn't use those same skills. In our increasingly competitive global economy, digital transformation is essential if organizations want to compete successfully on a global scale.
In a recent study by ptc.com, organizations that underwent a recent digital transformation identified the top benefits of adopting a digital model. The results are shown in the graph below.
Digital Transformation: How Specific Tech Solutions Provide ROI?
A very popular way for companies to implement Digital Transformation is through technology. Digital Transformation through technology focuses on using new data sources, advanced analytics, and visualization technologies to provide ROI-Return On Investment. Here's a few examples.
How to Improve Customer Experience With Digital Transformation?
1) Data Driven Marketing: One way to increase ROI is by using Data-Driven Marketing. This type of marketing analyzes customer behavior and collects data on how customers interact with their website, social media channels, and other touchpoints. It then uses these insights to create personalized offers to market to the right customers at the right time based on their unique behavior. This process enables marketers to increase conversions and maximize ROI for their marketing campaigns.
2) Omnichannel Retailing: Another way is through Omnichannel Retailing, which provides more value by giving customers the ability to interact with a business in whatever channel they prefer - be it online, in-store, or on their mobile device. This type of Digital Transformation and tech solution uses a variety of tools to bring together all the possibilities a customer has for interacting with a business - resulting in greater satisfaction and ROI for the brand.
3) Customer Experience Platform: Customer Experience Platforms also provide significant ROI because they enable companies to interact directly with customers and prospects without having to use a multi-channel approach. This type of Digital Transformation and tech solution provides businesses with a single view of their customers across all touchpoints, which allows them to engage in more personalized and effective interactions that lead to greater satisfaction and ROI.
How Digital Transformation Aligns With Overall Business Goals?
A large percentage of companies use Digital Transformation to improve their business goals. Some ways that companies use Digital Transformation to align with their business goals are through Data-Driven Marketing and Omnichannel Retailing. Data-Driven Marketing provides a better customer experience, which maximizes ROI for their company. Omnichannel Retailing also provides a better customer experience with an improved conversion rate and higher ROI for the business. Customer Experience Platforms are another way Digital Transformation aligns with a company's goal because they provide a single view of their customers across all touchpoints.
How Digital Transformation Increases Efficiency?
One of the best ways that digital transformation increases efficiency is through data. Data-Driven Marketing and Omnichannel Retailing provide excellent ROI for businesses because they allow companies to create personalized offers to their target audience based on data collected about them, which automatically maximizes conversions and ROI.
Data-Driven Marketing is also beneficial because it allows companies to strategically plan their content marketing campaigns and customer engagement.
Customer Experience Platforms are another way that digital transformation increases efficiency by giving businesses the ability to focus on one customer across all touchpoints. This results in lower costs for the business and a maximized ROI.
How Digital Transformation Increases Revenue?
One way that digital transformation increases revenue is through Data-Driven Marketing.
Data-Driven Marketing provides companies with a better understanding of their customers because they can create personalized offers to market to the right customers at the right time based on their unique behavior. This process enables marketers to increase conversions and maximize ROI for their marketing campaigns.
Omnichannel Retailing also increases revenue through increased conversion and higher ROI for companies. The process of Omnichannel Retailing is based on the idea that consumers want to be able to interact with a business in whatever channel they prefer - online, in-store, or on their mobile device. By implementing this type of digital transformation where customer interactions are brought together, it makes customers more satisfied and increases conversion and ROI.
Customer Experience Platforms is another way that digital transformation increases revenue for companies. This process allows businesses to interact with their customers in a more personal and effective way by providing them with access to all of their interactions across any channel at the same time. Ultimately, this results in increased satisfaction levels for the customer and maximized ROI for the business.
Digital Transformation Across Diverse Industries
Digital Transformation in Finance
Digital Transformation in Finance has become more common over recent years as it has been seen as a way to increase profits and better serve their customer needs. In the finance sector, Digital Transformation can take place across any or all of a company's service lines. Digital transformation in finance is about delivering a more personalized, transparent, and convenient customer experience across all interfaces, while also increasing operational efficiencies.
For info on how Financial companies like ABS Capital Partners achieved their Digital Transformations, here's a free eBook for you: lp2.exequt.com
Digital Transformation in Banking
Banks and other financial institutions are increasingly relying on digital transformation to bring more efficient banking services to customers. Digital Transformation in Banking is about using new data sources, advanced analytics, and visualization technologies to provide the best customer experience for people who have high-frequency needs. Digital transformation in banking has created new opportunities to dramatically improve customer retention by streamlining service delivery and creating stronger connections with customers.
For info on how Banking companies like Regions Bank achieved their Digital Transformations, here's a free eBook for you: lp2.exequt.com
Digital Transformation in Education
The future of education is digital.
The world has changed, and so should the way students are taught. Digital Transformation in Education can radically transform how teachers teach their subjects and how learners learn more effectively.
Here are three ways that schools, universities, colleges, or even homeschools can use digital transformation to create a better educational environment:
1) By providing personalized lessons for each student.
2) With interactive learning experiences where students get feedback on their work as they go.
3) By using data to design better curriculums which will then be used for every learner's benefit.
Digital transformation in Education offers educators new opportunities to improve teaching methods - not just through technology but also by adapting what they teach to match the needs of today's learners. The benefits of digital transformation in education go far beyond technology, as it allows teachers to teach students in ways that facilitate deeper learning.
For info on how Education institutions like EHL or the US Dept. of Education achieved their Digital Transformations, here's a free eBook for you: lp2.exequt.com
Digital Transformation in Nonprofits
Nonprofits are using digital technology for fundraising, online and mobile giving, marketing and communications, online volunteering, and event management. They can also use it to reach out to the people they serve in new ways through social media or by creating video testimonials. Digital Transformation in Nonprofits is an important step in nonprofit innovation because it drives efficiencies that free up staff time for more valuable work - such as delivering services directly with clients or partners.
Digital transformation isn't just about investing in technology; nonprofits must also invest in training their staff so they're ready to take advantage of new opportunities to deliver better services at lower costs. At the same time, digital transformation creates a richer donor experience which builds stronger relationships with donors that lead to increased donations over time. Nonprofits that embrace digital transformation will gain a competitive advantage as they become more flexible and dynamic in their services.
For info on how Nonprofits like Compassion International and Save the Children achieved their Digital Transformations, here's a free eBook for you: lp2.exequt.com
Digital Transformation: Take Your Business to Next Level
If you're looking to take your business to the next level, digital transformation is a must. The success of your business relies on your ability to adapt and innovate, which is exactly what digital transformation offers.
In this article, we've covered a wide range of topics including change management, data-driven marketing, methods to improve customer experience, and 3 top ways that Digital Transformation can improve company goals and increase ROI. Utilizing this information can increase conversion rates and improve customer satisfaction resulting in a higher ROI in the long run!
The first step to implementing any of these strategies is to have a roadmap. We offer a Complimentary Consultation to run through your specific needs and provide you with guidelines to implement a successful digital transformation. Simply click here to schedule.
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