Digital transformation in the business world refers to the efforts of companies to keep up with changing environments spurred on by customer demand and technology. Because digital tools and technology are constantly evolving and affecting how people interact with one another, this in turn changes the way in which we conduct business. How you transform your core business processes using digital technology will determine how you can achieve competitive advantage and gain differentiation in your market segment, says Techopedia. It's essentially the third component of how businesses embrace digital technology, following digital competence and digital usage. With an ability to bring on new elements of innovation and creativity, digital transformation goes beyond enhancing and supporting traditional strategies.
What Spurs Change?
On the quest to find true digital transformation, one must understand the drivers that affect this change, namely profitability, customer satisfaction, and increased speed-to-market. There's a general understand that CIOs should be the driving forces implementing this transformation for their businesses, but is this really happening? In reality, it doesn't seem to be that cut and dried. In fact, digital transformation has many motivations and is the responsibility of many people, from top executives to lower-level employees, says CMS Wire.
According to research presented by MediaPost, poor customer experiences caused an estimated $83 billion loss by U.S. companies every year due to defections and abandoned shopping carts. With so many options these days offered by cloud, mobile, Internet of Things, and others, it's easy to lose sight of quality of the data in favor or hyper personalization.
So the question remains: how can companies find true digital transformation with leadership from their CIOs?
Companies that can harness the power of true digital transformation will enjoy the fruits of their labor by being at the top of the heap in terms of competitive advantage and differentiation. That's what we're all striving for anyway, right? Here are some suggestions:
Have a real strategy ready to go. If you're still grappling with how to come up with an operational plan that works for your website and social media platforms, you're not going to get very far. Approach this goal not operationally but strategically, focusing on how your organization will be impacted by digital or how you can channel those new capabilities to broaden your overall business strategy. Lisa Welchman as quoted on CMS Wire says companies that have been disrupted by digital have become that way -- not because they didn't have a CIO in charge of the transformation -- but because they lost that 360-degree view of how digital would impact their digital models.
Recognize the full value of all digital assets throughout your company. CIOs all too often get into a file-centric mindset that puts them in a rut they can't quite get out of. Instead, use flexible data models that will work to engage new streams of revenue in order to encourage innovation. This will go a long way towards creating important digital transformations such as attracting new clients or driving new sources of revenue.
Focus on the customer as central to your success in the digital age. As the CIO, you have to re-examine your thinking and accelerate your reach via the enhancement of the customer experience. Crafting a solid foundation on which to illustrate this transformation is key for longevity of purpose. As such, you must re-evaluate traditional roles and make sure you are incorporating the best talent and infrastructure to build a platform for your new targeted strategies.
Imaginative thinking, coupled with just the right amount of spot-on execution, will be the catalyst for true digital transformation.