As the business world never stays on one method, companies must embrace the best strategy for digital transformation to survive.
The same method won’t apply to all businesses. Sometimes, companies have to integrate a few techniques. Other times, they must completely move away from the long-standing practices.
According to a Tech Pro Research 2018 survey, 70% of businesses had either planned or had been working on a digital transformation strategy.
So, If you are on the path of transformation, explore how to develop a digital transformation strategy in this article.
Start From the Top: Build a Team To Integrate Strategy for Digital Transformation
A successful IT strategy for digital transformation won’t make any disruptive team until the right team carries it out.
To improve the bottom line of a business, you need leaders who are active, courageous, and dedicated to taking apt actions.
Here are the top 5 attributes you need in a team to employ a strategy for digital transformation:
Barrier Breaking Leaders
A good must be eager to experiment with new technology and develop greater adaptability and flexibility. Leaders need to foster a culture that welcomes change.
They should ensure that everyone in the business is involved in the transformation process.
Leaders give ample opportunities to mid-managers, front-line leaders, and individual contributors to participate in the plan.
In addition to that, they provide different types of information at different times. This proactive approach informs employees where to work and how their methods will lead to the digital-first strategy.
Leaders are more likely to move their companies forward if they can explain the reasons behind the strategy for digital transformation.
Professional digital executives must be prepared with all the justifications for changing how they conduct business.
Their goal must revolve around broadening the scope of the business by tapping into new markets.
They shouldn’t see digital transformation as adapting the latest technology because it is the new norm of the industry.
Awareness of the Ins and Outs
The most effective executives must have a clear vision for the company’s future.
With a future-focused vision, they can allocate the funds and make the necessary changes to turn their ideas into reality.
A clear, comprehensive strategy for digital transformation specifies the organization’s current needs and long-term goals.
The key to making a prominent name in the industry is taking risks.
Any form of digital transformation strategy for small businesses in this dynamic world is impossible without risk-taking leaders.
The ones who create possibilities for experimentation and innovation become the basis of continued success in a company.
While creating a strategy for digital transformation, no business can rely on a single resource. A great leader actively values collaboration.
A business can employ the sharpest minds and cutting-edge technologies, but without cooperation and partnership, the results may not be desirable.
By building a team with these qualities, companies can use their resources to the fullest when implementing a strategy for digital transformation.
That said, we will move to the next part, which defines the components of how to develop a digital transformation strategy.
8 Steps to Unlock a Great Strategy for Digital Transformation
Irrespective of the size of the business, there are some useful components for how to develop a digital transformation strategy.
Scroll down to learn these steps to level up your business:
1. Leverage the Proven Technologies
Every technological advancement has existing inefficiencies and functionalities. To know your working strategy, you need to understand your existing digital landscape.
With the right strategy for digital transformation, a business goal is to fill the gaps in the processes.
That can be any aspect, such as employee performance, satisfying customer experience, and business expansion.
Evaluate the current market trends and technological disruptions while also analyzing your current IT infrastructure, apps, processes, and staff’s skill set.
You can use this to determine your technological strengths, limitations, and potential growth areas.
Finding the appropriate digital technologies is essential since it will enable you to draw in prospective customers and clients who want to use your business’s upgraded version of your services.
2. Goal-Setting to Reach the Target
If you want to know how to develop a digital transformation strategy, you need to set an achievable goal.
Without a direction, you can’t tell where to head with the digital transformation.
These are some effective analysis methods to get a technology that works well with your business goals.
SWOT Analysis: Recognize the strengths, weaknesses, opportunities, and threats of a business.
Clientele: Identify the audience personas based on the engagement.
Recognize Your Rivals: In any space, you may find a competitor at the top of their game. Do homework on how they are sustaining their business.
For instance, look for factors that differentiate them from the rest, such as price, service, reliability, and customer service.
Moreover, the company should find out if the new digital technology adapts to the current infrastructure for fast growth.
Once a company understands its business entirely, setting a target becomes an easy feat.
3. Dealing with the Cultural Shift
Culture and digital transformation work hand in hand. Flaws in a company’s culture limit employees from achieving their goals in the digital age.
One common factor between these two is that for the greatest impact, thoughtful practices are required.
Employees are resistant to change with the digital transformation. If the employees are not flexible with the change, the strategy for digital transformation may fail.
That is because the employees don’t work towards achieving digital transformation goals.
Every organization has unique processes that need the correct approach for making a strategy for digital transformation.
Leaders can better understand how to accomplish their goals by outlining where the organization stands regarding them.
Determining the need for transformation can also help the organization’s staff members grasp the ongoing situation of the company and the market.
4. Process Optimization to Join the Race
It is the preceding step in a strategy for digital transformation.
Process optimization is the systematic review and improvement of current workflows, practices, and operations to maximize effectiveness, cut extra efforts, and improve overall performance.
When you follow the steps of how to develop a digital transformation strategy, consider this as the basis for successful automation and digital transformation.
These are the reasons why process optimization is essential for a strategy for digital transformation:
- Finds out and rectifies shortcomings of the existing operations.
- Eliminates the unnecessary steps of a process, saving time.
- Helps businesses seize cost-saving opportunities.
- Process optimization helps in a smooth transition to technology.
- Guarantees that the processes operate at their peak efficiencies.
- Maximizes the profits you get from digital transformation.
- Mitigates the chances of errors and inconsistencies in data.
5. Curation of Data
The process of gathering, organizing, archiving, and managing data for present and future use is known as data curation.
Choosing and acquiring data, cleaning and processing data, organizing data, and making data available are just a few of the many tasks involved in this facet of data management.
Eliminating the pain points in your company’s operations for your staff and customers is one of the key motivations for implementing digital transformation.
But how will you be able to identify these possible difficulties?
You can find them with integration and analysis driven by data. When developing transformation initiatives, people choose the technology they think will work best before examining their data.
If you don’t conduct data-driven research, you may still be aware of the faults your internal team needs to solve.
However, you may not be aware of the ones that your consumers encounter on a regular basis.
When data supports any evaluation, a business can search for the best solution for a problem.
With a rough picture of solutions and problems, businesses can get clarity on how to develop a digital transformation strategy in a better way.
6. Choose the Perfect Digital Technology
For a strategy for digital transformation strategy, determine the technologies that are right for your company.
To better accommodate the current circumstances and maintain the business process with complete flexibility, any organization needs to scale up or down numerous important elements, such as storage, operations, and technological capability.
For instance, with cloud computing consulting services, a business can build resilience, reduce costs, and enhance security and efficiency.
Implementing digital technology in your business will cost a lot of money.
Therefore, it must be done well to eliminate the need for further expenses.
Any successful digital transformation strategy will offer a few options and associated costs to make the optimal choice.
Selecting the appropriate technology is vital if the business is updating outdated systems, modernizing applications, or implementing brand-new digital systems.
The new-age digital technologies for a business can be one of these:
- Artificial Intelligence & Machine Learning
- Augmented Reality
- Additive Manufacturing
- Digital Twin
7. Team Formation
A strategy for digital transformation is more about people than tools.
The formation of a good team will affect the outcomes of the change.
The team composition will depend on the scope of your project.
To set up a well-rounded team, you need the following internal resources:
A Group of Top Brass
Every team needs an agile leader to carry the torch for accountability. This person could be the Chief Digital Transformation Officer, Chief Digital Officer, Chief Digital Innovation Officer, Chief Technology Officer, Chief Information Officer, etc.
The core digital experience team is made up of active users of many technologies and industry sectors.
Product managers, customer service leaders, program managers, customer success engineers, solution architects, and senior managers of business and technical teams are a few titles that fall under the purview of the core digitization team.
Coders and Designers
Your team needs stakeholders’ contributions, including developers, designers, visualizers, data scientists, AI and ML engineers, etc., to advance the digital transformation plan.
This includes having competency and skills in development, designing, coding, and data science.
Your team structure will be shaped by the methodology you adopt.
For instance, if you use the agile technique, you’ll need a larger team with multiple smaller sub-teams with their own goals.
So, if you are searching for how to develop a digital transformation strategy, first, make sure that you establish a team using your existing talent pool or hire a team with experienced people.
8. Measuring the Strategy for Digital Transformation Success
How you lay out the strategy for digital transformation impacts the outcomes of your company’s digital transformation.
Results will always fluctuate depending on the procedures and tools you pick.
You must consider preliminary results when developing long-term strategies to scale the digital transformation and achieve new goals as your organization expands.
Before the team finally crosses the finish line, you must accomplish several small goals and objectives.
Start gradually and team by team, dissecting your major objectives to the greatest of your capacity with the new tools and technologies.
The roadmap for a strategy for digital transformation is likely to vary as you exchange and receive feedback from the customer data and stakeholder input.
Therefore, create an agile workplace where employees experiment and report their findings without limitations.
Example of a Successful Strategy for Digital Transformation
Many businesses have already made the switch to digital transformation methods with success.
Consider how Amazon has transformed the sector with its online retail platform and creative use of data to customize the customer experience.
More and more products now feature Amazon’s Alexa digital assistant, enabling voice control of those products.
Amazon is simultaneously expanding the availability of its smart devices in households and expanding the IoT capabilities of Amazon Web Services (AWS).
The success of such businesses is evidence that a strategy for digital transformation can improve operations, increase competitiveness, and foster development.
That’s why it is imperative to find the appropriate digital technologies to match the business’s objectives and work diligently to implement them.
Will technology and digital transformation replace employees?
No, digital transformation aims to assist individuals from different areas to execute things that add value.
How can I handle the internal opposition to digital transformation in a company?
Create a change management strategy at the start of the digital transformation to share the business’s future goals and successes.
What are the foundational steps of digital transformation?
Businesses can start by developing a communication strategy. This strategy should specify their aims and objectives for digital transformation and facilitate this significant organizational change.
What are a few signs to begin the digital transformation?
The current market, finances, long-term plan, and compliance with laws indicate a business’s readiness for a strategy for digital transformation.
Many organizations need a strategy for digital transformation if they want an upper hand in today’s digital-first environment.
Clear communication, setting up goals and metrics, and a digital-first culture are seldom necessary.
For a good start, identifying the required skill sets and the people the business needs is important. A perfect team to execute the process can offer a seamless digital transformation.
Since a digital transformation requires extensive teamwork and organizational culture, the processes should promote efficient communication whenever possible.
If your company doesn’t have the talent required for the big change, Q4 Gems can do it for you.
We have a complete suite of tools and actionable insights on digital transformation for guaranteed success in every sector.