Key to a Successful Digital Business Transformation
Digitization has or will become an integral part of every company’s growth strategy. What was earlier used tactically to handle smaller processes has now become the strategic core of day-to-day business functions. With information being readily available all the time, the customer decision making process has become short and most times even guided by gut and impulse. This has driven organizations to increasingly adopt digital solutions to transform and grow their business. Customized digital solutions are one of the top contributors to companies’ positive returns on investments.
Retail, for example, relies heavily on customer buying patterns and this can now be effectively predicted through analytical solutions, allowing retailers to customize offers and increase the propensity of new as well as repeat orders.
In the supply chain of a manufacturing set up, right from the inception of the product idea through production, marketing and sales, digitization fades out the inert component lines. All the players involved in an organizational line are digitally integrated within the manufacturing system.
Insurance underwriting and claims, for instance, are so well digitized, that the entire process is a happy experience for customers, who’d have otherwise gone through the insurance process due to unpleasant circumstances.
For legacy-based organizations, the process of transforming into an all-inclusive digital set up is much more complicated than what it is for relatively modern or new-age companies. Then, of course, there are companies which are somewhere between these two ends of the paradigm. However, there are some basic tenets that allow optimum use of digitization.
Whether you are embarking on the digital concord or are in between, there are some things that can be kept in mind to ensure that the digital transformation takes place smoothly.
Don’t overdo, and definitely don’t under-do.
Not everything needs to be digitized. It is hence important to identify the right function points and processes that need to be part of the digital transformation. Do not forget, while the transformation may be digital, innovation, remains human!
Benefits are sometimes instant, at times take time, and at other times, accrue over a period.
Not all eggs hatch immediately, and definitely not together. Some digital processes, deliver the desired results, over a period of time, while with some, you may see the impact, almost instantly. The pulpit pounder says, both are normal. Hence, do not panic, and more importantly, do not abort anything. Persistance, is the word!
DXO may be a new horse in your leadership stable!
Not a bad idea to have a Digital Transformation Officer who can lead all digital initiatives right through strategy, execution, and outcome. But yes, do not tuck him into the CTO or the CIO organization. Give him free reigns and let him have his organization, that ideally will be a mix of marketing and technology professionals.
The CMM of Digital Transformation: Culture, Mindset, Money!
Without a mind to change, nothing changes. The People Head of the organization, his team and the communication departments, play the digital orchestra together to make it sound like music to all employees’ ears. The benefits, most importantly, at an individual level, must be well communicated to all employees, consistently. Digital transformation, must become a culture within the organization, something that defines every individual as well as the company, as a whole. And of course, it finally boils down to money. While it is not necessary to have a lavish budget, it is important to have the right-sized and sustained budget to get the best returns on digital investments.
Head – Direct Sales