Digital Transformation: Key Aspects Of The Business | Keensights

In a business world in which changes are happening at breakneck speed and where increasing competition complicates the differentiation between companies, it is vital to have the ability and determination to face the new rules of the game that the customer dictates. The companies that want to compete and take a big piece of the pie are those who do not see this situation as a threat but as an opportunity. An opportunity for evolution and revolution. And that opportunity for evolution and revolution necessitates the involvement of the digital transformation of the companyt . Globalization and the development of new technologies force companies to develop a strategy in line with these new changes. Any action that is not focused on digital will sooner or later lead to a resounding failure of the company.

WHAT IS A DIGITAL TRANSFORMATION?

Digital Transformation is the process by which companies reorganize their work methods and strategies, to obtain more benefits thanks to the implementation of new technologies.

Therefore, it is not simply about buying new computers, opening a profile on each social network, or installing a CRM. The digital transformation implies the adoption of a new work philosophy that has to be shared and internalized by all the managers and employees of the company.

Despite the fear that many executives may have of embarking on an adventure of this magnitude, the digital transformation must be perceived as a gradual process. Under a global strategy defined in advance, actions are executed according to the capacities and resources that each company has.

In short, digital business transformation is what makes the difference between companies that die and those that endure. Companies are aware of this urgent need and, as can be seen in the following paragraph – 89 % of organizations have adopted or have plans to adopt digital strategy according to the 2018 State of digital business transformation report.

WHO SHOULD LEAD TOWARDS DIGITAL BUSINESS TRANSFORMATION?

At the helm of the company, the management team is responsible for the digital transformation process to come to fruition. From them, it is where a culture of change and the illusion of something disruptive and exciting for the rest of the team must be fostered.

To ensure success in this process it is necessary that the first to be digitalized is the Board of Directors. While it is true that the responsibility does not rest solely on one person, CIO (25.2%), the CEO (23.8%), and CFO (18.5%) are the positions in charge of leading the company’s digitalization. In other cases, in addition to the fundamental role that these 3 figures have to exercise, it is possible to choose to form a team (19.9%) devoted entirely to this mission.

WHAT DOES DIGITAL TRANSFORMATION IMPLY?

The digital transformation supposes the creation or redesign of the business strategy keeping always in mind the 4 fundamental pillars on which it is sustained: the technology, the experience of the client, the business culture, and the objectives of the business.

It is on these pillars that you must work on key aspects such as:

INNOVATION

Competing in such competitive markets means that customers always need extra added value. It does not work with being “one more”.

Betting on the disruptive innovation that new technologies can bring is essential to achieve a differentiated business model from the rest.

BRAND AWARENESS

Being a “top of mind” company within the sector is not a simple task and does not depend solely on oneself. However, working hard in the planning and reaching of channels where your ideal client is can help you climb to the top. Social engagement and digital conversation are some of the tactics to follow.

KNOWLEDGE OF DIGITAL TOOLS

As can be seen from everything written up to now, digital transformation starts from the need to adapt to the new existing technologies. That is why having a thorough knowledge of these tools is indispensable. Social Networks, ERPs in the cloud or monitoring systems are some of the multiple digital tools that a company has at its disposal to successfully face the digital transformation.

DIGITAL TRAINING OF STAFF

For a company to achieve the digital transformation correctly, it is essential that the people involved in it know perfectly all that this implies; employees, managers, customers, suppliers,…

Digital transformation is only possible when they are fully aware of its implications and have sufficient training to assume it.

USE OF BIG DATA

Without a doubt, Big Data is one of the star elements in the digital transformation and, possibly, one of the main tools to increase the competitiveness of the company. Having data allows the company, in the first place, to reduce operational risks after making decisions regarding the incursion of new products in a market; the evaluation of these products is more efficient thanks to the collection and storage of data.

In the same way, the use of Big Data allows you to focus your offer in a much more personalized way to each client. After all, the data is useful for that: to profile the strategies and the products towards the target audience that expects them in the most efficient and, even, logical way.

WHAT ARE THE ADVANTAGES AND RISKS OF DIGITALIZATION?

Although many companies can see this process as a difficult and expensive battle to wage, the facts show that the reward and advantages that are acquired later are remarkable.

Some of these advantages can be found in:

• Promotion of innovation in the company
• Improvement of the efficiency of the processes
• Increase in the operational efficiency of employees by 39%
• Promotion of collaborative work and internal communication
• Rapid response capacity in a changing environment
• New business opportunities thanks to data analysis
• Improves the customer experience and its relationship with the brand
• Digitalizing certain processes in the company increase customer retention by up to 33%

This list of concrete advantages could continue as much as your imagination can go. However, all of them are summarized and specified in a single concept: digital transformation is the process that will mark the future of your company.

However, not all companies are aware of this. And, of course, not all those that are aware, materialize and embrace as they should.

Regardless of the sector in which you act and the size of the company, there are many risks that can lead the company to the most resounding of failures. According to a study made by the database provider NoSQL, very few companies are correct in their digital strategy: 9 out of 10 digitization projects fail.

Among the most common reasons for failure stands out, in 84% of the companies, the limitation of their infrastructure and the poor internal organization capable of covering at the same time the digital transformation and the normal development of their commercial activity. In addition, 30% of companies that embark on this necessary adventure have no choice but to reduce the scope of their projects due to the high cost involved in the change in infrastructure.

“No matter the industry or the country, it is a common issue. Often, organizations that have started their digital journey do not have enough technological understanding to transform their business model” said Spencer Izard, chief analyst at Ovum.