How to determine the right path to Digital Transformation?
Determining the best path to digital transformation is not really easy. That's because with rapidly-evolving technologies, changing consumer preferences and ever-increasing competitors, many organizations hurriedly move to digital transformation with not much deliberation over the right strategy. Later they struggle to meet the challenges of this new, always connected digital world. They find it difficult to take the strategy from planning to implementation to create engaging and consistent digital experiences across every touch-point.
Experts suggest the entrepreneurs to first evaluate whether their organization is ready for digital transformation or not. And this can be done by answering to the below-cited questionnaire:
Reshaping customer value proposition
What are the customer engagement strategies followed by your organization?
How are your customers' needs and expectations predicted to change or are changing in the digital environment?
In what different way can the the digital technologies create new value for your customers?
Reshaping the operational model
How do you plan to merge the traditional, online and social media touch-points across your enterprise?
How do you plan to optimize the digital and physical components across your operating model?
How do you plan to realize the benefits of digital transformation – in relation to your enterprise, customers and partners?
To go forward with the best strategy for digital transformation, it's essential that businesses develop a structured approach that involves thorough engagement with customers, partners and employees. Businesses need to:
1. Identify the opportunities
Before jumping into the bandwagon, experts suggest the entrepreneurs to gain an in depth understanding of the digital technology. This will enable them to find out exactly what prospects lie for their business in this trending field. They can determine the extent to which their products and services can be digitized. If required, they can observe their competitors' stratagem in relation to digital transformation and how are they meeting the changing expectations of the modern customers.
2. Understand the customers' psyche
The primary force behind digital transformation is to meet customers' expectations. To do it rightly, it's necessary that entrepreneurs first have an exact notion of their existing and potential customers expectation from their business. For instance – in the name of digital technology, what are the customers expecting and will expect in the next five year span?
Based on these insights, they can plan to revamp their products and services to create new packages that the existing and prospective customers are likely to pay now and later.
3. Design an optimized operating model
An operational model that's compatible with your digital transformation strategy and supports the new value proposition is necessary – states Jim. M Morrey.
That's precisely why, business entrepreneurs need to invest time and effort in understanding the current organizational capabilities and opportunities and build a model that supports digital transformation elements like cross-channel integration and customer collaboration. Most importantly, entrepreneurs need to optimize the work process across online and physical interactions and build a a new set of digital capabilities.
Always be in the mode of continuous improvement
Customers expectations are dynamic. Their requirements and preferences change with the onset of new technologies. As a result, it's important that businesses continuously evolve using customer insight and advanced analytics. Entrepreneurs are required to employ tools like customer relationship management to analyze customer interactions at grass root level and gain a fresh source of insight always.
Brian Solis, (a renowned business expert and blogger) has discussed in detail on the topic of Digital Transformation in his latest blog titled - Digital Transformation: Why and How Companies are Investing in New Business Models to Lead Digital Customer Experiences
In his viewpoint, digital transformation involves investment in new digital technologies to better engage the modern and digitally-savvy customers at every touch-point.
He stresses upon the importance, of understanding the conception of digital transformation before making any substantial investment in this realm. To explain this further, he has cited three key elements that define digital transformation. Take a look -
1. Vision and Leadership
Digital transformation is an emergent movement. Businesses looking forward to capitalize it and gain competitive substantive advantage need to have a solid story and a vision for what their digital business strategy should look like and what should it deliver. The strategy should be aligned to business objectives, leveraging all possible digital capabilities and market advantages.
2. Digital Customer Experience
To create a new, robust and effective digital customer experience, businesses need to do extensive research. They need to thoroughly study customers persona, behaviors, and expectations throughout every stage of the lifecycle.
Based on these insights, they need to give shape to their digital transformation strategy by aligning it with the customers' expectations.
3. The Digital Transformation Team
It's advisable to appoint a separate team for executing Digital Transformation Roadmap. Some of the top shot companies have done this earlier and benefited. So it makes all sense for the new aspirants to bring people together who will be dedicatedly putting the digital transformation strategy into motion.
Once all these elements are implemented, entrepreneurs can smoothly re-align and re-invent current processes and infrastructures for an effectual digital transformation.
Patricia is a full time CRM consultant at ConvergeHub and part-time blogger. She has earned herself quite a fame as a specialist and market expert in CRM software. In the last five year she has worked with various companies as CRM consultant to help them move their businesses to cloud. Her expertise lies in offering cloud CRM consultation, CRM customization and integration solutions to small enterprises. For last one she is engaged in building ConvergeHub, cloud-based CRM solution for SMBs, as a consultant.Follow her at Twitter: @convergehub