Businesses need to change the way they work and operate according to industry developments. Not doing so means losing the opportunity to leverage the latest technologies, processes, and systems built and promoted to help businesses evolve.
At the heart of these changes is making a business more agile, resilient, and productive vis-a-vis the current market requirements. A report by Harvard Business Review finds that 53% of the businesses have improving business continuity and resiliency as their primary objective.
At the heart of these changes are digital transformation solutions that steer an organization towards a more connected and adaptive world. However, you need to execute the right plan decorated with six key elements to implement a digital transformation strategy.
Let’s talk about these aspects in detail and help you leverage the right digital transformation solutions for a better tomorrow.
Six Key Components of Digital Transformation
1. Information, Data, and Insights
Data is at the heart of digital transformation solutions and processes. Digitally transformed businesses collect, collaborate, and interpret data to create specific plans for every department in the organization.
Companies that use data can go deeper in understanding their systems and customers. They can create specific buyer personas, segregate their audience, conduct predictive analysis, and ensure guided product development.
All these aspects are fruitful because they absorb data and use it to create high-yield outcomes. Data-driven businesses are 3X more likely to experience improvements as compared to ones that don’t leverage data.
2. Modern Infrastructure
Exploiting digital transformation solutions requires having a modern infrastructure to support the systems put in place. Against popular opinion, modernizing the infrastructure is a money-saving measure rather than money-wasting one.
Digital transformation requires integrating the physical infrastructure with cloud-based solutions and SaaS platforms. Creating a hybrid infrastructure ensures a higher level of security with a flexible work culture optimizing the technology spend.
This part of the digital transformation is the hardest part as in some departments; organizations have to overhaul the entire system to qualify as modern infrastructure.
To move ahead in your digital transformation journey, you need to identify the technologies that are applicable to your industry. All the technologies integrated into the system should align with your budget and requirements.
3. Team Structure
The Harvard Business Review study we referenced earlier also finds that technology and data aren’t the only things required to implement digital transformation solutions, you also need people.
People as in the right team to lead, execute, manage, and build the required systems. Companies need to restructure their teams, and the employees need to go for reskilling or upskilling. The motive is to create a balance between the people and technology embedded in the working environment.
Start with getting some tech leaders onboard, like a Chief Technology Officer. This is the person who will be the torchbearer of your digital transformation journey. An agile leader will make this easier and optimal for everyone involved in the transformation plan.
Next set of team restructuring must be done at the management level. These people hold the first-hand experience of working with digital transformation solutions and technologies and possess business intelligence.
So, designations like product managers, customer experience leaders, solution architects, technical managers, etc., need to become a part of your team.
The last set of team restructuring is at the technical level, where you need to get coders, designers, and data engineers on your team. This may not be required for every organization, but if you want to implement AI or Big Data-based solutions, you need the right people who know how to work with these technologies.
4. Collaboration and Communication
When you implement digital transformation solutions in your organization, you need people working in the company to collaborate and communicate with each other well.
For this, if required, you might need to overhaul your existing culture and change it to become more cohesive and tech-enabled. Initially, there might be some resistance while trying to bring about a cultural change, but it’s imperative to succeed at digital transformation.
To ensure a smooth transition, you must communicate with your team and employees. A digitally mature workforce will only help you fast track implementation of digital transformation solutions.
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So, to ensure minimal resistance from the workforce, communicate with them and show the benefits of digital transformation. Hold training sessions and in-house reskilling or upskilling programs.
You must prove to your employees that digital transformation is the right way to move forward and that it’ll benefit every stakeholder associated with the company.
5. Process Reformation
With new technologies embedded into the organization and digitally mature employees, you can easily revamp the business processes. Work on identifying the required business processes and understand how you can change them with minimal resistance and achieve maximum disruption.
For instance, you can look into the current sales process and find the gaps in the same. Conduct interviews with the existing customers to understand expectations.
Create a list of all the tasks associated with a process. Automate repetitive tasks and work on improving the ones that need specific attention. Similarly, gather feedback on every other process operational in the organization from the people involved in the same.
Create maps with achievable tasks and objectives to build a multi-phase digital transformational approach.
6. Measure your Success
There is no point in executing digital transformation solutions if you are not measuring your success. The results will depend on how well you have implemented the above steps.
Measuring results must be done by using Key Performance Indicators (KPIs). Set short-term and long-term KPIs to measure the impact of your digital transformation solutions effectively.
Once you have the results, compare them with the previous findings and expected outcomes. Find the gaps and improve the processes that are working well.
One of the cultural changes associated with the results is the ability to take feedback and work to improve the system.
Mapping your digital transformation journey is easier said than done. There is a lot of work to be done, but it is manageable and beneficial, provided you are doing it right. We have listed out the major components of digital transformation and their importance.
By working on your digital transformation solutions, you need to be ready for some challenges and resistance along the way. Let’s end the discussion by saying one simple thing. Digital transformation is not just about using the latest software but creating a technically mature workplace where technology is considered an ally rather than a nuisance.
Eva Jackson is a content cum digital marketer at Rejig Digital, a leading Digital Transformation Company. She is an avid reader and likes to remain updated on the latest digital transformation & remote assistance app. Her articles are informative and interesting at the same time as she can express insightful thoughts clearly.