Understanding what digital transformation means for business can help you deliver it right (and fast).
What is Digital Transformation?
Digital transformation or DX is the change in how we deliver business today through digital technologies.
Of course, every business differs in needs for transformation. But in general, digital transformation uses technology in changing business operations and customer service delivery.
For example, digital transformation affects how organizations work from the inside. It aims to improve employee productivity. It also aims to make operations and systems deliver faster and more accurate results.
As a result, companies deliver better customer services. It increases customer retention and loyalty to a business or brand.
On the other hand, it is not necessary to change everything to apply DX. Because DX can also be applied by modifying or updating existing technologies. Overall, the goal is to improve business efficiency and generate more sales.
What Drives Digital Transformation?
A major factor affecting digital transformation is technology. However, putting too much focus on technology can fail the real core of DX.
As said, the purpose of DX is to raise revenues and deliver better customer services. With that in mind, leaders should create digital strategies that deliver the said results. Thus, making DX more about strategies, rather than technologies.
No matter how luxurious the technology that you invest with, but if it does not work to align with your goals, that investment is a waste.
Understanding what your business needs, how your business can expand, and what your customers expect- these factors can help shape your digital strategies. Hence, what may work for other companies does not necessarily mean that it works for you too. So you have to see your personal needs and tailor solutions accordingly.
Many companies see the benefits of applying agile principles across business functions. Also, many opt for automation today. Automation can, for instance, increase speed in operations while investing less.
Why Measure ROI in Digital Transformation
Measuring the return on investment (ROI) in a digital transformation can help you prove the success of your initiative.
However, this is not always an easy game. For example, projects can be cross-functional and have business boundaries. These factors can limit how business markets and interacts, for instance.
In addition, digital transformation is an ongoing process in every entity. Which also presents a challenge in quantifying the levels of its success.
By all means, measuring success is important to monitor progress. It can also help you see which technologies deliver real solutions and which do not.
So it is important to set your initial success metrics from the start. Also, for agile experiments, have micro-metrics. This can help you learn and adjust to solutions in the long run.
How to Get Started in Digital Transformation?
Digital transformation should always begin on top. Thus, as business leaders, you should be the primary source of empowerment for DX.
Many leaders gain support from learning DX through courses. Also, others seek help from digital adoption companies. By doing so, you can effectively deliver changes that will meet your business goals.