What Goes Into a Digital Transformation Strategy
According to a study conducted by Smart Insight, 34% of companies have already undergone a digital transformation.
As of right now, we can only think and imagine what enterprises will look like in 10 or 20 years. Deloitte made a video with some future scenarios that could stem from the current digital transformation programs:
Although it sounds technical, a digital transformation strategy is not only about updating and changing the technology of a business, but rather, it is a complete metamorphosis of processes, culture, and guidelines.
What are some processes that need updating during a digital transformation strategy?
The road to digital transformation requires a deep understanding of the digital landscape and informed decisions to move forward in the successful implementation of new operations.
Some of these include:
One of the first aspects of process changes during a digital transformation strategy starts from the inside out, and from the top. The role of board members and C-level professionals will shift completely and decisions will need to be made when it comes transforming and creating new roles that are more in tune with the times.
This article by IVC goes more in-depth into the new aspect of current roles and new roles that will need to be appointed.
Redefinition of business strategy
As digitization continues, the behaviors and needs of customers are constantly transforming and businesses need to keep up with the changes. An example of this in retail is how customers find your products, and a report by Synchrony states that 85% of baby boomers research products on their web browsers.
While when it comes to the way people make purchases and their preferences, 68% of millennials demand the convenience of omnichannel accessibility during their shopping journey (Accenture).
Now, these types of consumer behavior are occurring everywhere, so one of the first processes of a digital transformation strategy should be a redefinition of the business value proposition, catering to the digitized world and society.
This table created by IBM Institute for Business Value puts it into perspective:
Better data management
Now, with the launch of GDPR in Europe, every business had to make significant changes related to data privacy and management within their company. But with digital transformation, we need to look a little bit further than security. For example, aside from better protection and use, data could bring lots of value to a business when leveraged correctly. From learning information about customers to moving towards personalization.
The incorporation of AI and Machine Learning for those purposes will need to be evaluated. However, we must not forget the importance of collecting and managing data in a serious and ethical way.
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