The 5 Pillars Behind Digital Transformation Strategy Success
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It’s true that all types of services are going digital now. Shopping, banking and school – things that once were on paper now take a couple of clicks. Therefore, it only makes sense that businesses would also adapt by moving to digital. This is where digital transformation strategy comes into play.
Digital Transformation is much more than just using computers or having a website. Digital transformation means rethinking your entire business, including a holistic view on how you serve customers, how your team works and how data is managed and connecting all that to different modern technology.
Going digital is not easy though. You need proper planning and clear direction. This difference is the ‘digital roadmap strategy.’ You need to think of it as a roadmap. It gives you the direction your going, how to get there, and the pitfall you might encounter.
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Let’s take a look at the 5 pillars of digital transformation that will support a successful journey.
Clarity in Strategy & Goals
Before you start doing anything, you have to have the clarity on why your doing it. A successful digital transformation strategy should start with a clarity and goals. In 2022, a PwC study found that 53% business couldn’t handle digital transformation well because they didn’t define their goals.
Your digital transformation strategy should answer:
Make customer service faster?
Reduce expenses?
Improve collaboration?
Make decisions with data?
Now that you have determined your goals, it should be easier to plan. Many businesses jump into purchasing business tools and software without knowing what they truly need – only to find themselves confused and out of pocket.
For example, Dominos wanted to “go digital” and purchased expensive inventory software. However, they did not properly train staff, nor did they integrate the software with their sales system. Consequently, it was utilized minimally, and only added to the chaos. If they had a strategy, they would have understood that training and integration were far more important than buying “the tool”.
Right Technology and Services
Now that you are clear on your goals, the next step is to choose the right software and partners. This is where digital transformation services can help.
There are virtually hundreds of softwares, platforms, and IT consultants to choose from. But not everything will suit your business. Choose software that:
- Is suitable for your industry and business size
- Integrates well with your existing software
- Is intuitive or easy to navigate for your employees
Furthermore, make sure you don’t just pay attention to the shiny features. Pay attention to whether the technology can actually solve your problem.
Example:
A small company wanted to automate their billing process. Instead of over-engineering their solution with a big complex ERP system, they opted for a simple cloud-based invoicing tool. It was cheaper, easier, and accomplish what they needed.
If you choose the wrong tools, you can run into a lot of confusion very quickly. It is better to try things, and start small.
People and Culture
One of the biggest mistakes companies make is putting too much focus on the technology, and forgetting about the people that are using it.
Digital transformation means change. And people often don’t like change. The team interact confusion, worry and potentially anger around the new tools and systems being introduced, that is why the right culture is so critical.
You must help your team understand how these changes will make their lives easier, not more difficult. They need training, they should be involved in the planning and given sticking opportunities to adapt.
Example:
At one organization, the sales team refused to use their new CRM software. They found it confusing to use, and confusing to use, a waste of time. Management realized the problem was not the tool, but how the tool was positioned. They added quick training sessions, provided cheat-sheets, and ensured that all managers were using the CRM too. Slowly, everyone adopted it. So remember, even the best tech fails if people don’t use it properly.
Data and Insights
Data today is like gold, but there is so much data and many companies collect it, but seldom effectively use it.
A great digital transformation with artificial intelligence strategy involves improving how you gather, manage, and utilize your data. This allows you to make more informed decisions, identify issues earlier, and provide better service to your customer.
Example: A group of properties that operate a restaurant chain may have relied on gut feeling to ascertain which dishes to push in their business. After shifting to a digital POS system, they began to track which dishes sold better, hours of service, and even sales performance per location. The data allowed them to modify their menu and offers, which resulted in higher sales.
Additionally, data helps to enable a faster operational process. Forget the guess work, and waiting for reports. You can act, and give directions based on real data.
- Smart Use of AI and Automation
One of the most exciting aspects of digital transformation today is the emergence of AI – Artificial Intelligence. When discussing digital transformation with artificial intelligence, there are things businesses can now do that they could have never done before. Gartner says 69% routine tasks will be automated by 2025.
Examples of some AI uses include:
- Predict customer behavior
- Recommend products to customers
- Allow customers to ask questions 24/7 with AI chatbots
- Fraud detection
- Analyze massive amounts of data in seconds
Example: Reliance Jio
Reliance didn’t launch Jio as a one stop shop. Instead Reliance took a steps approach by focusing on adjacent investments to digital, first as it relates to 4G, creating telecom infrastructure, affordable phones, then apps, which led to 470 million users by 2023.
It was no magic trick, it was just a road mascot to digital
You Will Have Challenges (And Here’s How to Overcome Them)
- We don’t have the budget
You don’t have to spend everything at once. Start small. Cloud based tools have a lower cost and low barrier to scale.
- My team won’t adapt
Then offer short focused training. Celebrate the small victories. And remember to include them from the start.
- We have tried before and failed
Evaluate your objectives. You may have just selected the wrong tool or maybe the timing wasn’t right. Remember that something did not work.
Key Stats to keep in mind
- 70% of all digital transformations will fail due to poor planning, program initiation, or ineffectual change management (BCG).
- Businesses implementing artificial intelligence tools in customer support unfortunately saw a 30% decrease in resolution time (Accenture).
- 67% of SMB’s indicated that digital tools helped them survive the pandemic (Salesforce).
- Transforming a business digitally using artificial intelligence is expected contribute approximately $15.7 trillion to the global economy by 2030 (PwC).
Concluding thoughts
Digital transformation is not just a buzzword; it is a means of survival. It does not matter if you are a sole proprietor, a hospital, a bank, or a 50-year-old factory; the way people want to transact business has changed. People want responses more quickly, less paperwork, more personalization, and seamless digital interactions on their terms. If you do not offer that, then someone else will.
That is where a good digital roadmap strategy becomes amazing. It enables you to break things down into small actionable measures. It is not just about saving time or money; it is about creating an organisation that can adapt, learn, and grow. After a manual error is eliminated, your employees have more time to focus on what matters most; making better products and making customers happy.
And in all of this, digital transformation leveraging artificial intelligence plays a significant role. From fraud detection in banks, personalized recommendations in e-commerce, to predictive maintenance in factories, artificial intelligence makes your business smarter and quicker. Also, it is not as intimidating or expensive as some may believe. Today, even small businesses can adopt artificial intelligence tools without employing a large number of technical employee
The future will be owned by companies that are adaptable, data-driven, and digital.
