Over the years, we have studied, advised on, and/or participated in a plethora of digital business transformations. While doing so, we have learned just how difficult true digital business transformation really is and what it requires to succeed.
Remember, digital transformation isn’t for the faint hearted because the unfortunate reality of the digital transformation industry reveals that many alike pursuits (for e.g., transformation programs) have failed.
Managers and leaders do not realize that digital transformation success requires bringing together and coordinating a far greater range of efforts than they’ve initially imagined. A poor performance in any one of four key, inter-related areas of digital transformation can destroy an otherwise well-conceived plan.
If you’re wondering, “what is digital transformation?”, fret not; we’ve got you covered. In this post, we’ll discuss how the four key domains of digital transformation can enable businesses and leaders to align their vision and endeavors from the get-go to achieve the ultimate objectives and foster long-term business growth.So, without further ado, let’s dive in!
What Is Digital Transformation?
In a nutshell, digital business transformation is the process of using modern technology to modify existing or create new business processes, customer experiences, and culture. The re imagining of businesses in this digital era equips organizations with the tools necessary to meet evolving market dynamics as well as keep up with leading competitors.
If you’re planning to embark on a digital business transformation journey, then there are some key areas that you must consider – process, cultural/organizational, business model, and domain.
Keep reading on to learn more about each.
4 Key Areas of Digital Transformation
#1 – Process Transformation
This digital transformation domain encompasses the modification of business process elements to accomplish new goals. The majority of organizations engage in a process transformation when they need a radical update.
Since undergoing such an alteration would modernize and remodel a business’s processes, better integrate primary systems, integrate new technology, and save money.
#2 – Organizational/Culture Transformation
This entails several elements of change management, like leadership, teamwork, emotional intelligence, courage, and more. An effective digital business transformation requires more than just redesigning products or modernizing technology.
If you fail to align your transformation endeavors with your core internal values and behaviors, please note that it can lead to a knock-on effect on your organization’s culture. Therefore, leaders must formulate a crystal-clear vision of the digital transformation and communicate it effectively throughout the organization.
#3 – Business Model Transformation
Several businesses are pursuing state-of-the-art digital technologies to transform their conventional business models, from Apple’s reinvention of music delivery to Netflix’s reinvention of video distribution.
By adding to and/or reinventing current business models for success, businesses can accomplish a transformation that leads to a myriad of new growth opportunities.
#4 – Domain Transformation
An area that unfortunately does not receive the attention that it should due to its enormous untapped potential is domain transformation. New technologies have the capability to blur industry boundaries, redefine products/services, and promote opportunities for unconventional competitors.
This kind of transformation provides several opportunities for businesses to create new value. If the capability is there, all your business really needs is the vision and confidence to make a move. So, if you’re undergoing a digital business transformation, be mindful of the new prospects for domain transformation with the incorporation of new technology.
Digital Transformation Insights
Spending on digital business transformation is projected to rise 17.1% globally till 2023. Likewise, expenditure on digital transformation technologies is fore casted to reach 2.3 trillion dollars in 2023. Below we have devised some executive insights for businesses undergoing or planning a digital business transformation.
- Be clear about what your stakeholders want to enrich the overall experience.
- Define what digital transformation is and what it is not for your organization to ensure everyone is on the same page.
- Focus on end-to-end and customer-centric processes as they are ideal for digital transformation.
- Digital transformation is an organizational, cultural, and technology shift, therefore avoid just a tech lead transformation.
- The constant learning offered by a digital business transformation means it’s never truly done and isn’t merely a one-time project.
Closing Note
Remember, one of the most important things while creating and communicating a compelling digital transformation vision, to designing a plan and adjusting it on the fly, is all about people. More than anything else, this transformation demands talent and digital transformation manager skills.
Assembling the right team who can work together with a leader who can bring about change might possibly be the single most important step you can take. Indeed, even the best talent doesn’t guarantee success. However, lack of it surely guarantees failure.
