The most discussed topic in business today is digital transformation. Companies are struggling to keep up with changing business environments brought about by customer demand and technology. Digital tools and technology are changing how people interact, and in turn this changes how people do business. According to the recent study of Forbes Insights and Alfresco “Rethink: How Digital Leaders Are Building Tomorrow’s Organization”, the most successful digitally transformed companies tap three common skillsets.
Digital transformation fundamentally changes how companies create, monetize, and defend value, giving companies the much-needed competitive edge. We have identified the key steps to a successful digital transformation.
While digital transformation is important, the first step is to understand what digital transformation means to your company. The word “digital” can have different meanings to different companies since digital transformation is the means to solve a problem and each organization, depending on its maturity, industry, competition, value chain, and ecosystems, has unique problems. Also, People in the organization must first analyze their people, technology, go-to-market strategies, and all of the other things which they are comfortable with – and think about how these can be changed to meet the threat.
Once you have identified the key challenges for your company, you are in a good position to evaluate the various digital transformation alternatives that exist for you. These alternatives could range from front-end transformation such as products and customer experiences to back-end transformation such as cloud and IT infrastructure.
This strategy should go beyond the steps you are taking toward digital transformation, but should instead encompass the whole company. For example, how is your company going to position itself to fend off threats from digitally-savvy companies? Additionally you do need a technology strategy. Without a step change in technology and new sources of data, your plan will not have enough innovation for it to succeed in the long term.
If you have the right strategy you won’t need to worry so much about processes. Having great people with the right training who understahnd the strategy will develop the right approach on implementing your strategy. This is particularly important for companies whose markets change quickly. As things evolve more rapidly and data becomes more real-time, then the company’s reaction must be more agile. And for this to happen, you must empower employees to make the right decisions.
Start executing on your plan.