Digital transformation in companies: What it is and how to implement it
21 de November, 2022
According to Deloitte, 85% of CEOs have accelerated the digital transformation processes in their companies since the Covid-19 pandemic. The reality brought about by the pandemic has posed numerous challenges for organizations, which have felt the urgency of becoming more technological and more digital in order to remain competitive or even to survive.
However, for some, this effort may have been unsuccessful and, for others, it may not have happened at all. The truth is that many companies are still struggling to start their digital transformation processes and this continues to be one of the most discussed topics in an organizational context.
So come and learn more about the concept of digital transformation and how it can be implemented.
What is digital transformation?
Digital transformation is a process of fundamental change in the way organizations operate their business, communicate and interact with customers. It implies a break with more traditional procedures and a transition to a digital culture (Digital Marketing Institute, 2022).
Digital transformation is neither linear nor the same for all companies and industries. Rather, it is a complex process that forces organizations to rethink the way they do business and how the integration of technology and digital tools can contribute to their growth.
Why is digital transformation important?
There are three key aspects that reveal the importance of digital transformation in companies:
- Productivity: with more automated processes and technology working for you, employees have more time to devote to more strategic tasks (less operational and manual), which increases efficiency.
- Innovation: technology brings countless potentialities that make it possible to optimize the way tasks are done, but also the way the business model itself is set up. Products and services can be improved to better meet customer needs and provide a more relevant experience.
- Growth: more efficient processes, more productive teams and more robust and innovative products/services inevitably lead to business growth.
6 steps to implement a digital transformation strategy
1 – Define what digital transformation is for your company (what and why)
Since the notion of digital transformation varies widely from company to company, it is crucial to define what it means for yours.
In addition, understanding the motivations for your company to become more digital is a critical part of the process. Is it because you want to redesign your products or services to be more digital? Is it because you urgently need to optimize your customer support and communication channels? Is it because you want to automate and streamline internal procedures? Understanding why your business will want to embark on this journey is fundamental.
2 – Create your digital transformation strategy
There is no universal formula or recipe that all companies can use to carry out their digital transformation. So you’ll have to find your own.
- Start by defining the objectives of this process (short-, medium- and long-term objectives, what skills and knowledge you want to acquire, what changes need to take place).
- Determine, in practice, what needs to be done to achieve these goals (which digital platforms need to be optimized or even hired, which internal procedures need to be changed, which employees need to be trained and in which areas).
- Then establish responsibilities (who will be involved and in what tasks/deliverables).
- Finally, define metrics that allow you to gauge whether or not the digital transformation strategy is being successful (analyzing results is a crucial step in identifying points for improvement).
3 – Align the entire organization
Once the strategy has been defined, we need to ensure that everyone involved is on the same page. As we said above, digital transformation implies a cultural change. It must therefore be clear to everyone why it is being developed, with what objectives and impacts and, above all, convey that everyone’s contribution is important.
4 – Take advantage of technology
This is the core of digital transformation, right? Digital technologies and tools open doors to a host of new potentialities, new ways of doing and thinking about business, which contribute to its growth and competitiveness.
However, make sure that the platforms you choose to underpin your digital transformation process are the ones that best suit your company’s needs.
Also, don’t make the mistake of wanting to change or adopt all the tools at once. This transition should be a continuous and incremental process: more like a marathon than a sprint.
5 – Develop team skills
Many digital transformation projects tend to fail, or not reach their full potential, due to a lack of skills. The qualification of human capital is a critical success factor.
Empower your teams with the digital knowledge they need to be an active part of this process.
6 – Test, analyze results and test again
Your digital transformation strategy will change procedures, routines and working tools. It’s even possible that new roles will be created or changed within the organization.
It’s natural that some changes are easier to adopt than others, that some processes may work better than others. What is fundamental is that you are in a position to evaluate all of this, to understand what is going well and what is not, so that you can readjust approaches and improve.
In fact, any company that has already started its digital transformation will describe it as a journey. This transition takes time and, in order to make progress, there are bound to be setbacks.
But the benefits of making your company and your business more digital are undeniable. So today could be a good day to start!