If you were to ask 10 CTO’s or CEO’s what digital transformation is, you’ll likely get 10 very different answers, depending on their business models. However, digital transformation is the change in how a business delivers value to its customers. At its highest level, digital transformation represents an impactful reimagining of how your business uses technology to change its performance.
Research conducted by IDC states that 34 percent of companies believe they’ll fully adopt digital transformation within 12 months or less. They also found that 47 percent of companies haven’t started yet and 59 percent worry it might already be too late for them. Incorporating digital strategy will require many departments to work together, as it will be a team effort. Along the way, you’ll find various enemies that may arise when collaborating on what your digital transformation should entail.
The Old Way Still Works
One of the reasons why your team may be on the fence about truly embracing digital transformation is because they believe that the way they’ve been operating this entire time still works. Going hand-in-hand with this belief is the idea that any change will render them useless or obsolete. This isn’t the case. If anything, embracing digital transformation will provide new opportunities for your team to grow and further evolve your business as a whole.
As your teams focus on digital operations, the forefront should be on the qualities of your customer’s value. Your engagement and business metrics should both align with what matters most to them. Being able to respond to the expectations of your customers starts with a strong focus on customer insight. In a letter to Amazon shareholders, Jeff Bezo’s states that, “Good investors and designers deeply understand their customer. They spend tremendous energy developing that intuition.”
When your teams fully embrace digital transformation and all that comes with it, they’ll soon see they are tasked with less busy work. When that occurs, your team can focus on delivering real value and direct engagement with customers. This can encompass anything from customer service, social selling, and composing a data-driven marketing strategy. Companies that transform digitally are creating highly engaged customers who are six times more likely to try a new product or service and are four times more likely to refer a brand to family and friends. If your teams truly believe that the old way of operating still works, you’re basically handing your customers over to your competitors.
It Costs Too Much to Update Old Software
Every department has heard that it will cost too much to update old software, but not upgrading could cost you more in the long run, as the cost of obsolete systems can be detrimental to any business. For instance, I’m sure you know the classic, “if it isn’t broke, don’t fix it?”
As part of your digital transformation, the cost of not replacing old software must be estimated before you can honestly answer the above question. There are many factors to consider, one being revenue. Will your new software increase the selling of your services or products that can’t be done on your current software? Is the growth of your business being hindered by obsolete software? Will a new system in place better retain customers and inhibit faster customer service?
There is also the data standpoint that must be considered. It’s likely that your business runs on information that needs to be accurate and up-to-date. If you are depending on obsolete software to obtain information, you are doing your business as a whole a massive disservice and could potentially be leaving money on the table, money that your competitors are ready to scoop up.
You Don’t Have the Team to do the Work
There’s no denying that if your business wants to explore the benefits of a digital transformation, you’ll need to have the right team to achieve it. However, you may find your business just doesn’t have the hands on deck to administer such an overlay. In fact, seven in 10 organizations admit to a digital skills shortage.
If this is the case for your business, and you don’t want to be left behind as your competitors embrace a digital transformation, let Egen help. As the experts within innovation in the digital world, our team can help your business drive innovation through technology and data science in ways you never thought possible. Whether it’s assisting in the hiring process using our experience with Teams-as-a-Service, or taking advantage of our Design Sprints, don’t let the size of your team hold your business back.
Begin Your Digital Transformation Today
When your business embraces digital transformation, it provides an opportunity to understand the modern-day customer, engage with them, and deliver on their expectations. As you begin to recognize these three enemies of digital transformation and how they could stand in your way, you’ll soon see that they don’t have to hold you back.
Embarking through a digital transformation isn’t just about digital, but also requires your business to reinvent many portions that include technology systems, operation processes, and business models. Nigel Fenwick, Vice President of Forrester, said, “Digital transformation is a fundamental shift in how a firm delivers value and drives revenue.” The stakes of not having a plan are growing faster than ever, and so is the speed of how quickly things in the digital world change. An MIT study found that companies that have embraced digital transformation are 26 percent more profitable than their peers. Don’t let these proposed enemies stop your business from reaping the benefits of digital transformation.
- Data Science
- Digital Transformation