The 3 Most Important Elements of Digital Business Transformation
Digital transformation has been an important consideration for business leaders for a long time. But the COVID-19 pandemic has made the situation critical.
Digitally mature companies have been more resilient to disruption. They are also best positioned to capitalize on post-pandemic opportunities.
In 2021, 80% of managers reported that digital helped them get through the pandemic slowdown. And digitally transformed enterprises now account for 44.6% of global GDP:
Digital business transformation is vital to survive and thrive in the new digital economy.
But how do you digitally transform?
The answer is a digital transformation strategy that encompasses the right elements.
In this guide, we’ll go into each key element of digital transformation. You’ll learn which elements you should prioritize and why.
Three Digital Transformation Key Elements
As consumer behavior and expectations change, businesses must adapt. They need to reevaluate how they generate and deliver value.
A digital transformation strategy is a roadmap for managed change. It details how a company will adjust and reposition itself to succeed in the digital age.
There are three main elements that a digital transformation strategy should take into account:
- Customer Experience
These are the components you should focus on when creating your strategy.
Digital business transformation has a significant impact on operations.
In simple terms, digital transformation should make operations more efficient and simpler. How often have you performed a task and thought, “there must be a faster or easier way to do this.”
The use of technology can help overcome bottlenecks. Strategic deployment of the right tools can minimize the steps in operations and speed up value creation.
Digital transformation can provide several operational benefits for the business.
Replacing Legacy Systems
Many organizations spend a large proportion of their budgets simply maintaining legacy systems.
Legacy systems are tools and software that the organization has used for an extended period, often for many years.
In many cases, legacy systems are outdated and not integrated with the other tools used across the business.As a result, these systems are often a barrier to more efficient operations.
A company’s digital transformation can reduce costs by integrating more efficient technology solutions into operations. This can reduce time and money spent on outdated legacy processes. But it also empowers teams to work with the best tools available.
In 2019, IBM conducted a study on robotic process automation. They discovered that a bot could work 20x faster than a human, with fewer mistakes.
Digital Transformation in Business Intelligence
For business intelligence and marketing, technology solutions can transform operations. It can help teams make decisions much faster and based on accurate insights.
By making information accessible with a dynamic digital ecosystem, you can identify challenges and opportunities and have the insights to act fast.
Digital business transformation can help your organization manage change.
A recent study showed that 84% of executives identified new business opportunities due to their digital transformation initiatives.
CMOs need to take ownership and champion the adoption of new tools and operating models. Keeping pace with consumer trends and becoming more resilient to change is only possible when you have the right tools and strategy guiding your operations.
One of the most obvious areas where technology has revolutionized the world is communication. It makes it easier for people to connect.
Going digital is an opportunity to inspire collaboration, teamwork, and scalable business processes. You can create a transparent, innovative culture and environment.
A company’s digital transformation is about democratizing data insights. It’s about breaking down data silos and eliminating repetitive manual processes.
Increasing Efficiency of Processes
According to a recent survey, 54% of US office professionals spend more time searching for documents and files than responding to emails and messages.
You can free teams from repetitive and time-consuming tasks. Instead, they can focus on more strategic revenue-producing activities.
Digital transformation can optimize existing processes and create entirely new automated processes.
It’s about choosing the right technologies to simplify existing processes and acquiring the right capabilities to start and scale new strategies quickly.
For many organizations, cloud adoption is pivotal to the success of the digital transformation. Around 86% of business leaders believe that cloud computing has been critical to their digital transformation.
One of the key benefits of cloud computing is that it makes information accessible across an organization. Data can be captured in real-time and provide accurate data insights to teams.
Automation for Digital Transformation in Business
Businesses need to be innovative to avoid disruption and succeed in the digital age. But to be innovative, companies need to empower their departments to collaborate. That requires the right culture, tools, and processes.
Automating digital channels using a customer data platform and MarTech tools can free up time to work on more creative applications, such as building best action workflows.
The flow of data throughout the organization is key to making data-driven decisions. It’s also integral to creating the seamless experiences that modern consumers want. As a result, business processes are more efficient and impactful on performance.
CMOs can be at the forefront of innovation in the company. There’s an opportunity to automate everything except the key moments where human creativity can make a real difference in the customer experience.
3. Customer Experience
The customer experience is at the heart of digital transformation.
Digital can increase efficiencies and boost productivity. But the key driver for most digital transformation initiatives is to stay relevant. It’s about keeping up with the speed of the consumer.
Technology has had a significant impact on consumer behavior, preferences, and expectations. Digital consumer speed has outpaced most brands.
People want solutions on their terms. Omnichannel shopping journeys, personalized experiences, and instant customer support are now universal expectations.
The modern consumer is hyper-connected, with more options than ever before. For example, a shopper can pick up their smartphone and instantly find multiple service vendors or similar products to buy.
Micro-moments have fractured the traditional buyer’s journey. Intent, immediacy, and context are now king.
Companies need to understand how their customers’ behaviors and expectations have changed. Then, they need to determine how to meet consumers on their terms.
A digital transformation strategy should encompass the tools and resources needed to provide the experiences that customers demand. That starts with gaining a deep understanding of the digital consumer.
Marketing is integral to this element of digital transformation. First, marketers need to plot out the buyer’s journey for each buyer persona. Then, they can create experiences across digital channels.
The goal is to be there with the right message or piece of content at the right moment.
MarTech and Data Analytics
Digital tools and technologies can help marketers gain insights into specific market segments. They can also help marketers measure the impact of campaigns.
For example, social listening and natural language processing (NLP) can provide insights into how customers perceive the brand and its products and services. It can reveal what delights customers and what causes dissatisfaction.
Building real-time data analytics capabilities can also help companies enhance the customer experience. For example, it allows for more personalized messaging, recommendations, and content.
Digital transformation can empower brands to forge stronger relationships with customers. As a result, the business can attract and retain more customers. Around 85% of business leaders say that digital transformation efforts have increased market share.
The CMO can define the customer experience vision for the company. Customer experience can be a differentiator for your brand and drive customer acquisition and retention.
Digital Transformation Key Success Factors in 2022
Even before the global pandemic, consumer digital adoption speed was accelerating. Over the last two years, many organizations have fallen further behind.
To survive and thrive in 2022, businesses need to understand the critical elements of digital transformation. You need to be ready to adapt and innovate.
The consumer won’t stop evolving. To better serve them, companies need to be ready to embrace new tools, capitalize on new trends and keep learning.
That means having the capabilities to measure performance across these essential elements of digital transformation. By quantifying holistically your performance against your competitors, industry benchmarks, and past performance, you can keep your transformation on track.
You can keep up the momentum and be a driver of change, of innovation in customer experience, and of business results in the digital age.
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