Firms are investing heavily in their digital transformation projects preparing for the Fourth Industrial Revolution, so the global spending on digital Technologies expected to touch nearly $2 trillion by 2022.
Accenture has predicted that digital technologies can potentially generate $1.4 trillion additional revenue in infrastructure, manufacturing, agriculture, and financial services by 2026. While this indicates how all the sectors are embarking on the digital transformation journey, fewer than a third succeed in their digital marketing initiatives.
McKinsey has confirmed this, as they estimated that less than 30% of digital transformation projects only succeed. And with the failure, the resultant productivity and monetary losses are devastating. So, if businesses are compelled to embark on the digitalization journey to remain competitive digitally, they need to realize the intended value of these projects.
Firms need to tick the below checklist to ensure that they realize the full potential of their digital transformation project:
Step 1: Start with the CX
More than 80% of CEOs assume that they’re delivering a superior experience, but only 8% of consumers agree. Every organization needs to leverage the available tech tools to eliminate the gap between the customer experience organizations think they offer, and what they actually deliver to the customers. No organization should even embark on a digital transformation project till they’re sure about how the transformation will enable them to provide more advanced and better CX.
Step 2: Effective data collection and analysis to derive meaningful insights
Digital transformation projects need to include capabilities to synthesize and draw meaningful insights from data collected across all internal and external sources –customer experience data, operational data, social media, sensors on devices, etc. It is crucial to have data organized and governed correctly. Firms need to be sure to comprehend the steps toward safeguarding data quality and invest in advanced data management platforms to support the digital transformation journey end-to-end.
Step 3: Train and build a strong team
It is the employees who will ultimately make or break the success of the digital transformation project. Having the correct mix of skills and knowledge within high-performance cross-functional teams will enable firms to execute the strategy smoothly. It is vital to have a clear view of the organization’s short and long-term needs based on the transformation strategy to attract and retain the required skills.
Step 4: Continuous support from the C-suite
The most successful digital transformation projects have full buy-in and support from the C-suite. The CEOs need to understand the potential of new technologies to align and deploy them to achieve the business vision.
Step 5: Choose wisely
There is an array of options for technologies that can be deployed and consumed to digitalize the businesses. Organizations owe it to themselves to explore choices and choose wisely what can bring them the needed agility, scalability, and improved decision-making abilities. To gain a competitive advantage and differentiation, firms need to choose carefully and explore thoroughly based on market research.
Step 6: Choose the right partners
It is crucial to choose the right service providers and partners to future-proof the success of digital transformation projects. Ideally, partners and vendors should be extensions of the organization, with shared success metrics and common goals in place. Partners that offer value-based outcomes provide better strategic support and on-going value as compared to the more traditional models of engagement.
Getting the above points right puts firms in the realm of some of the world’s most successful and innovative businesses. Getting it wrong will lead to firms joining the swelling ranks of those projects that failed miserably to make a positive impact on the organization and its internal and external stakeholders.