Digital transformation is being mentioned left and right but not all of its supporters truly understand what it means.
This is normally due to the fact that the term as is undefined as it gets, with different businesses associating different meanings to it.
How do we go about defining a digital transformation?
In the simplest terms, a digital transformation is the use of digital technologies to streamline, simplify, create, alter, or perfect business processes, business culture, and customer experience.
Since this is literally every operation a business normally undertakes, the only thing that can be concluded with certainty is that digital transformation is meant to tackle ALL operations rather than separate segments.
Ideally, a digital transformation should include:
- Process transformation
- Business model transformation
- Domain transformation
- Organizational digital transformation
Getting Started with Digital Transformation
Getting started with a digital transformation is the most difficult part as poorly defined things can be tricky. To simplify the matter, start with defining your budget, everyday processes, and the state of your tech.
The only thing that can be said for certain in this regard is that digital transformation means alignment. That’s why businesses must make certain that their leadership teams agree on the process and company goals.
This is normally done by assessing processes and practices within the organization and deciding which areas can be enhanced. Since these can be literally anything, the road to optimizing the processes is also upon you.
Typically, businesses start with adding more new tech. While modern technologies can make everyday tasks easier, too much of anything isn’t good anyhow. Rather than adding an app for every problematic task, look for systematic solutions and improve existing methodologies and obsolete software.
One usual problem all companies face is knowledge sharing. Since “knowledge-sharing culture” is a relatively new term, it is yet to be defined, established and streamlined, so every business is doing what it can. Digital transformation can, perhaps, start from there.
Planning for Efficient Digital Transformation
Is it possible to plan out a digital transformation?
Seeing how many unknowns there are, it may indeed appear difficult.
That’s why it is recommended to develop a strategy through a set of frameworks to be followed by every member of the organization, top to bottom. Detail goals, responsibilities, expectations, and the means how to achieve these aims.
To mitigate risks, pay attention to security.
It’s important to note two terms in this context: data security and data privacy.
Data security has been pinpointed as the key issue in terms of digital transformation but there aren’t any specific standards addressing it.
Data security is the process of protecting corporate data from unauthorized access, which includes cyber attacks, ransomware, malware, viruses, and similar.
Data privacy is the divergence between data that can be shared (non-private data) and data that cannot be shared (private data).
Enforcing data privacy basically portends two processes, namely access control and data protection.
Access control ensures authentication to prevent third parties from unauthorized access. Data protection ensures that even if unauthorized access happens, data won’t be corrupted or lost. The usual data protection method is encryption.
Data security and data privacy have many similarities. The difference between the two is that the first protect data from malicious activity and the latter ensures confidentiality.
With so many risks involved, it is critical to ensure that a digital transformation doesn’t prioritize progress over safety. All steps need to be followed to ensure utmost security, including training, legal counsel, and governance policies.
How to Track the Progress of Digital Transformation
To track a digital transformation’s progress, you’ll need to set appropriate metrics. This is done by setting goals and, sometimes, milestones as well.
Both need to be clear, measurable, and overreaching (intended for all operations, not separate ones).
Key performance indicators should be able to give definite answers to the following questions:
- What data will be used?
- How will data be collected?
- Who will collect the data?
- At what intervals will data be collected?
- How will data be analyzed?
Systematize Digital Transformation
Digital transformation takes time, so don’t expect it to be achieved at once.
Dividing the processes into smaller initiatives is the right way to go about the change. Make sure that the milestones and goals follow this pattern, too. Accompany the initiatives with a project plan that details the scope, people, timeline, goals, and risks.
Hire Professionals for the Task
Normally, businesses employ teams of IT specialists. However, if you feel you need professionals with different skill sets, don’t hesitate to hire them.
A digital transformation normally requires a team of highly skilled professionals that include software engineers, cloud computing specialists, data scientists, data architects, digital product managers, industry specialists, compliance specialists, technologists, solution delivery architects, etc.
The list is long and setting up a team from scratch is a challenging feat. Add to that the fact that digital transformation isn’t linear and takes time and you’ll see how serious the initiative is.
What Are the Goals of Digital Transformation?
Since approaches to digital transformation differ, so do goals.
While specifics should be determined within each organization, you should aim for some common goals, including:
- Productivity
- Improved customer service
- Reduced costs
A digital transformation can boost employee productivity, which has been documented in numerous studies. The reason is simple: the process aims to streamline processes and align employees no matter the team or location. This is especially evident in digital knowledge management, which enables employees to find answers to any question quickly and thereby solve issues more easily.
Next on, customers are becoming more demanding. In fact, surveys show that 76% of consumers expect immediate attention [郎1] when contacting a business. Some 70% of them look for content that can help them troubleshoot the issue. A digital transformation strategy should provide them with exactly that.
Finally, digital transformation reduces errors, automates repetitive tasks, and improves performance management, which inevitably leads to reduced costs.
A digital transformation is a complex process that takes time but is definitely worth it. Because it’s complex and non-linear, it requires strict planning, execution, and clear goals. Measuring the progress of your efforts is of tremendous importance as it allows for adjustments early on. With complex processes like this one, it’s better to spot difficulties and errors as soon as possible as digital transformation targets performance on all levels.
