Author: Leo Corado, Freelancer, SurfShark

Someone may argue that Digital Transformation, or DX, is a crucial move to keep the business running nowadays. But the global digital transformation market is expected to grow to $1,009.8 billion by 2025 from $469.8 billion in 2020.

With more and more processes digitalized, you can’t lag behind this global trend.

But what is DX, exactly? And how do you design a successful strategy? Let’s look into that in more detail.

What is digital transformation?

Digital transformation means that technology is utilized to improve business operations. The goals of DX are to make an organization more:

• Effective
• Efficient
• Competitive
• and profitable

DX goes beyond using new technology or automating processes. The whole culture of an organization must change to use technology as a primary tool for better and faster decision-making.

Digital transformation is an ongoing, dynamic process that doesn’t happen overnight and that requires certain aspects to succeed.

Also Read: Digital Transformation Technologies Are Growth Drivers for All Businesses

Types of digital transformation

There are several common types of digital transformation:

• Customer experience: Using systems or features to improve the customer’s experience, such as chatbots.
• Automation: Automating tasks at various levels to boost productivity and speed.
• Business process management: Using technology, such as an online ordering system, to perform tasks to free employees to do other work.
• Data analytics: This allows companies to access crucial information about their customers and operations on which business decisions can be based.

Because businesses are different, the DX employed will vary. Deciding what is or is not required is part of the challenge.

Regardless, all systems require safeguarding. Network-linked technology from PCs to machines must be safeguarded to prevent attacks, whether it takes the form of a crucial VPN for desktop computers, antivirus, firewalls, and off-site data storage and backups.

What are the 5 core elements of digital transformation?

This list provides a useful guide for most businesses wishing to pursue digital transformation.

1. Perform a thorough analysis

Start the process by taking a close, honest look at your business:

• Analyze where your business is performing well and where there are problems.
• Check the skills available in your company and identify the skills gaps.
• Examine the technology currently used and analyze what it does.
• Assess your business goals and brainstorm how digitalization may help to achieve them.
• Research what your customers need and want in terms of technology.
• Establish how your competitors use technology.

You can now look at solutions specific to your business, goals, and customers rather than generic ones. Then, identify the technology solutions to transform your organization to achieve your goals.

2. Create a strategy/action plan

Not all the problems you identified in your company can be solved with technology. Some may require other solutions. However, you should investigate if and how data and technology could improve each area.

Remember DX is an ongoing process so draw up an action plan that includes:

• Short-term targets.
• Specific events.
• Projects
• Milestones
• Contingency plans.

This plan should include both initial, medium-term, and future initiatives.

3. Inspire a culture of change

Digital transformation will not succeed without the full buy-in of all staff, management’s support, and clear leadership. Creating a team from all levels who believe in change is useful too. Their functions are to:

• Create peer-to-peer change by championing it.
• Act as a conduit for feedback from their peers and customers.
• Communicate the action plan etc., to those involved.

Collaboration and teamwork are key, and a continuous feedback loop allows open communication, fosters cooperation, and promotes innovation and problem-solving.

4. Create an agile organization

Although a plan is crucial, businesses must be willing and able to adjust and rethink it if necessary; a DX strategy must be flexible. If you discover that something is not working, you must analyze the problem and data and make the required changes.

A business that is truly committed to transformation and has a strong communication structure can adapt quickly.

5. Monitor and sustain the culture of change

It can be easy to slip back into the old ways of doing things unless change becomes part of the day-to-day organizational culture. Your company should celebrate achievements and consistently encourage and reward team members who innovate, promote change, and acquire new skills.

Managers and the change committee must monitor progress and feedback against the strategy and plan to ensure things are still on track. Adjustments that are required should be incorporated into the plan so that it stays up to date. This also allows you to assess the ways your business is benefitting from the process.

Also Read: Retail Needs to Deliver Omni Channel Customer Experience

In closing

There is no doubt that digital transformation can strengthen efficiency, boost morale, and increase both productivity and income.

For this to occur, though, it is necessary to carry out an honest analysis, draw up a strategy, generate buy-in at all levels, sustain the culture of change, and monitor progress.

Change may be daunting, but digital transformation brings about immense rewards!

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