Digital transformation is a growing reality. It is defined as a comprehensive idea that encompasses all the technological factors influencing the way businesses are meeting changing demands. A 2014 MIT review pinpointed and examined the nine elements present in digital transformation, and how the use of technology is being used to “radially improve” the performance and reach of enterprises throughout the globe. Understanding how this shift is increasing savings and productivity can help companies focus on the opportunities that will have the most forward impact on their business.
According to the findings in the Sloan Review, there are three major areas involved in the digital transformation: customer experience, operational processes, and business models. Of the 157 executives and IT leaders interviewed in 50 globally located companies, the most effective companies were found to merge “strong leadership with digital activity” to establish what is called digital “maturity” using these various elements of change.
Altering the Customer Experience
Digital transformation influences three areas of the customer experience: touch points, understanding, and top-line growth.
- Touch Points: The technological innovations employed in this area involve offering new methods for customers to communicate with companies through digital outlets that save the customer time and the business money. Examples include Twitter accounts for immediate interaction, home shopping options, and a variety of self-service digital tools.
- Heightened Understanding: Using social media sites, companies gain key information on what pleases or displeases users, and have an inexpensive marketing tool for promoting their brands more effectively. Also, analytic-based experiments offer better insight into customer drivers.
- Top-Line Growth: CRM software and other technologies improve sales experiences and offer more individualized service based on previous buying. The ability to provide customized and location-based offers and other streamlined activity transforms top-line growth.
Transforming the internal processes of the operation improves worker efficiency and productivity.
- Digitized Processes: With specific software, companies are able to remove waste and increase automation. In a production setting, digital transformation shortens the development lifecycle and improves logistics performance.
- Employee Empowerment: The rise of mobility gives companies the power to separate the worker from the workplace while increasing productivity. This element reduces operating costs and increases the use of contract specialists for heightened results.
- Performance Controls: New technologies offer more visibility into customer trends and performance metrics, giving decision makers better information for faster implementation.
Changing the Business Model
This aspect involves actually altering the way business is performed, not just changing the technology.
- Digital Modifications: This involves using technology to “share content across organizational silos” and employing digital services to solidify base customers and attract new ones.
- Digital Business: Complementing traditional products with the Internet of Things (IoT) is leading the way in the digital transformation. Examples include vehicles with embedded GPS, watches that track workout accomplishments, and other ideas that offer an “integrated, multichannel experience.”
- Globalization: Companies maintain their local responsiveness while lowering costs through an integrated global approach.
The digital alteration of business is here, and companies that embrace the change are those that will continue to expand. To learn more about digital transformation, contact Coda Global today.