POSTED FEB 06, 2020
Every successful organization has to make a transition from a repetitive process and adopt automation. A fierce competitive environment and a digitally transformed landscape have made it a necessity for organizations to launch digital transformation as a part of their key strategy to survive and sustain.
Launching a digital transformation initiative just for the sake of it will never create lasting benefits. Investing in digital transformation without an inclusive strategy can be detrimental to an organization, causing discontent and more significant inefficiencies
So, where to start?
While digital transformation is essential, it's critical to understand what digital transformation means to your organization. The term "digital" can have different elucidation for different organizations since digital transformation is a process to resolve operational inefficiencies, and each organization depending on its industry, competition, value chain and ecosystems have unique issues.
Digital transformation is a business transformation for organizations and is the ultimate challenge for the management. It not only impacts industry structure, strategic positioning; rather, it affects all levels of an organization (activity, task, process) and even extended to supply chain.
Organizations need to spend resources and time to figure out short and long term goals to make informed decisions on solutions that are suitable for their specific needs. The other way is to consider what technology investments would bring the most value to your customers as customer satisfaction translates into higher revenue and growth.
Digital transformation is not just about innovative technology; it requires significant changes to be implemented across the entire organization to get the best ROI. Very often, organizations fail to implement necessary changes to their internal structure during a digital transformation initiative.
A digital transformation that fails to incorporate the ability to measure the value it's trying to provide is hardly beneficial. Without the ability to effectively analyze and measure KPIs, organizations are withholding themselves of valuable insights and unable to make necessary adjustments that will further dent their revenue and profitability.
Key performance indicators are the most valuable metrics for improving your business. To find out where digital transformation can best help in your business, you must look at the right KPIs. Every company has different needs with different work methods that have unique strengths and weaknesses. So find the relevant KPIs, track them, and see where you stand. It will drive you through on the right direction to implement digital transformation and help you improve drastically and fix problems on the go.
Before stepping into the digital transformation process, take stock of where your organization stands, which includes how your area of business is changing and evolving, what your competitors are doing to embrace digital technology, and what they want out of a digital experience. Exploring these questions will help shed light on what strategies to be adopted, what processes must get transformed, and whether digital transformation is the right move.
Digital transformation is not all about technology. Digital transformation redefines how organizations create value for their end-customers, and none of that would be possible without skilled and co-operative employees. Failing to align goals of digital transformation with employee values and behaviour harm an organization's culture and endanger the whole effort.
To remain competitive and relevant in today's ever-changing business environment, organizations must digitally transform in new and incremental ways. Accepting this fundamental reality and engaging in digital transformation with proper attention to cultural alignment and ethical use of technology, organizations will be in a better position for a successful transition to digital transformation.