Understanding Digital Transformation

Sal Sribar, Senior Vice President at Gartner, told a group of executives in 2017, “Many businesses are stuck running digital projects. Some of them are very large, but digital projects are not a digital business.” The idea of digital transformation has been around for a few years. Mr. Sribar stated in 2017 “Four years into the digital shift, we find ourselves at the ‘peak of inflated expectations, and if the Gartner Hype Cycle teaches us anything, a trough is coming. Disillusionment always follows a period of extreme hype.”

This quote exemplifies the frustrations many executives feel with pushing forward digital transformation. They know it needs to be championed and come to fruition, but there are stumbling blocks along the way, including a broad resistance to change. And taking the steps towards this transformation means developing a plan. Unfortunately, a 2017 CIO study found more than half of surveyed CIOs did not have in place a formal digital transformation plan. Many of the respondents noted they’re working on digital projects, but the lack of a plan is telling in terms of them not seeing the transformation as a broader cultural undertaking.

In the fastest-growing, tech-savvy world, digital transformation is important across different industry verticals. Nevertheless, implementing the same is a complicated procedure that requires thoughtful planning and strategy. As a CXO, or CIO, it is necessary to perceive the digital transformation process for enhancing the growth, and sustainability of business at a rapid pace. 

According to a CIO study, less than half of business leaders have a digital transformation strategy in place.

What Exactly is Digital Transformation

Digital transformation is essentially a disruption. And the need for this disruption is often coming from new entrants to the market, or competitors that are doing things differently and are grabbing customers.

It changes how a company operates, how employees look at their work, and the ways the company relates to its customers. It means adding digital processes, systems, and other tools to the company’s entire operations with the goal of enhancing customer experiences, reducing risks, and finding new revenue-generating opportunities.

Companies that embrace digital transformation are looking to build a more agile, customer-centric, and efficient enterprise. They want to be able to put in place new opportunities quickly (perhaps a new mobile app) to help them disrupt their market and capture customers. The pressure for this transformation is increasing because many industries are commoditizing, and therefore providers need digital tools to stand out. They have to offer the most streamlined app and ordering processes. They have to respond to customer queries through any type of channel in order to become known as the best service provider. Companies are desperate for differentiation.

The need for a digital transformation strategy is also influenced by the customer’s expectations for immediacy which are driven by a changing demographic that is growing up with mobile and connectivity. While some CIOs and other C-suite executives might find the customers’ expectations to be unreasonable, they’re still the customers, and that means firms must “adapt or die.” Operational flexibility, fast access to innovation, and an improved customer experience are all drivers of digital transformation strategies. And these must all come together harmoniously if firms are to succeed.

Types of Digital Transformation Services for Businesses

A digital transformation solution is the process that includes leveraging technology to effectively change how a business functions and provides value to customers. It has four central pillars: 

#1 Business Transformation: 

As the name suggests, it involves reevaluating the complete business model, encompassing how the business creates and provides value to customers. It also includes revenue sources, an enhanced market, and a better customer experience. 

#2 IT Transformation: 

It involves the procedure of automating and upgrading technology infrastructure, such as cloud computing, for quick development, enhanced reliability, and streamlining different IT operations and IT transformation services.

#3 Process Transformation: 

This pillar includes maximizing workflows and multifarious operations with the help of digital software. It eventually boosts efficiency, helps save costs, and speeds up time to market. 

#4 Customer Experience Transformation: 

This aims to perceive end consumer requirements and leverage cutting-edge tools to upgrade interactions, increase customer satisfaction, and create strong relationships.  

Key Elements of a Digital Transformation Strategy

Digital technology transformation involves a vision and workable plan for achieving the goals, criteria for progress tracking, and robust organization culture. There are different key components of digital transformation strategy services: 

#1 Robust business strategy: 

It is vital to have a set vision to understand how technology will boost business outcomes. It is one of the significant areas that must align with organizational goals.

#2  Goals and objectives: 

It is vital to figure out SMART goals for business (Specific, Measurable, Achievable, Relevant, and time-bound Goals). These goals must be effective for transformation and plan the roadmap for execution. 

#3 Optimizing process flow: 

This includes assessing the current business procedures and incorporating future-proof digital technologies for handling operations seamlessly. 

#4 Implementing technology: 

It involves executing the right technology, considering scalability, security measures, and integration with ongoing symptoms. 

#5 Business culture change: 

Employees must have the liberty to opt for new tools and increase collaboration capabilities. This will help promote a digital-first business culture in the organization. 

#6 Consider the structure of team: 

It is vital to ensure that companies have the right skill set and talent needed for digital transformation and have a specialized team in place for digital initiatives. 

#7 Data and the analytics: 

Utilizing the data to get insights, make data-driven decisions, and foster innovation within the business. 

Why Digital Transformation Matters

Digital transformation is important because it will positively impact key metrics, such as customer lifetime value and operational efficiency metrics. It’s a strategy that pays dividends across the organization, as internal teams are more connected to each other and data, operational tasks occur faster, and customers are engaged more deeply. Digital transformation means accepting the realities of today’s connected consumers. It involves offering multiple channels of communication, blending the in-store and virtual experiences, using social to connect people to the brand.

Ask the founders and investors of Blockbuster if they wished they pushed forward with a faster digital transformation. There are myriad other cautionary tales of companies that held significant market shares but didn’t move in time with the pace of change. Consider a brand such as Nike that makes money selling shoes, clothing, and equipment. It’s moving into digital through its own branded fitness trackers and even the launch of connected footwear which will further inform athletes about their progress and training. The company also features Nike+, a social community with running clubs, coaching, and events that blend together digital data and real-world experiences. Such digital transformations on the customer-facing side allow companies to stay relevant with Millennials and even younger demographics.

Digital transformation matters internally because it involves centralizing data and then putting in place new ways to become more agile and innovative. It promotes involvement by everyone in the organization, by giving them collaborative tools to let their voice be heard and to perform their tasks in more efficient and customer-facing ways. It also means gathering input from employees, before, during, and after transformation, so it can be confirmed the new processes are working properly “on the ground.” Digital tools can promote more autonomy among staff members, as they’re empowered by information access, and have the context they need to make data-based decisions.

Eager to learn more about the ways digital transformation can prepare your business for success? Next, we’ll dive into how you can implement digital transformation within all facets of your organization. Understanding the “how” of digital transformation will promote deep and lasting change that will pay a multitude of benefits for both staff members and the company’s various performance metrics. And the third blog in our digital transformation series will examine our work in the utility sector—an industry that’s overdue for digital movement.

How Digital Transformation Services Drive ROI and Business Agility

Digital transformation services improve business agility and ROI (Return on Investment) in different ways.

Digital transformation improves business agility by: 

#1 Streamlining the operations: 

Adequately automating workflows and procedures decreases manual work, reducing errors and increasing efficiency and productivity.

#2 Data-based decision making: 

Digital transformation IT services give access to real-time data and allow business owners to make the right decisions based on insights.

#3 Innovation: 

Digital transformation tools enable easy deployment of future-ready products and services, thereby helping businesses gain an upper hand. 

#4 Increased customer experience: 

With the help of customization, an omnichannel platform, and data integration, companies can efficiently offer customized experiences and create strong consumer relationships.  

Digital transformation improves ROI by: 

#1 Enhancing productivity: 

Data-based decisions and automation enable an increase in employee productivity.

#2 Competitive edge: 

Industries can be competitive through innovation and agile methodology, thereby grabbing market opportunities. 

#3 Boosting profitability: 

Digital transformation services boost profitability by carrying out operations effectively and decreasing costs. 

#4 Higher revenue: 

Businesses can generate sales and revenue by fresh products and services, maximizing customer experience and handling operations seamlessly.

#5 Cost consideration:

Industries can have decreasing operational costs and higher efficiency with the help of automation and efficient utilizing resources. 

THE TECHBLOCKS PROCESS

RESEARCH

WE STAND FOR FRESH VIEW ON BUSINESS AND IMPLEMENT NOVELTIES WITH PLEASURE.

DESIGN & DEVELOPMENT

EVERY TEAM MEMBER HAS OVER FIVE YEARS OF EXPERIENCE IN BUSINESS.

IDEA & CONCEPT

WE STRIVE TO USE MODERN TECHNOLOGIES AND THE LATEST RESOURCES IN OUR WORK.

TESTING & SUPPORT

WHEN YOU DON’T SEE THE RIGHT DECISION, WE ARE HERE TO SHOW YOU ONES.

Choosing a Digital Transformation Services Partner in the US & Canada

To zero in on the best digital transformation services in North America, it is important to understand the service provider’s track record, customer-based methodology, industry expertise, etc. You must analyze how the service provider leverages new technology trends (like AI, ML, etc.) to boost digital transformation. The service provider you select must appropriately sync with your organization’s culture. It is also vital to read the feedback of previous clients to single out the top-notch digital transformation service provider for your business growth.