Digital transformation is important for everyone from small businesses to large enterprises. As technology evolves, everyone talks about how important it is to stay competitive and relevant.
But, not all leaders are sure what digital transformation means. Unfortunately, it can’t be ignored and the stats prove it:
- Digital businesses are 26% more profitable
- 78% of executives say digital transformation will become critical
- It is predicted that more than 60% of CEOs will incorporate it into their corporate strategy by 2021.
Source: Digital Business Infographic
What is Digital Transformation?
There are a lot of articles on the topic and definitions online. Some say it closes the gap between what digital customers expect and what businesses actually deliver. Others state that existing practises need to adjust to digital.
Digital transformation looks different for each company. This happens when you integrate digital technology in all areas of your business.
It changes how your business operates and brings value to your customers.
It also means stopping some long-standing business processes and implementing new ones. Some of these processes are still far from perfect so your company will continuously have to experiment to determine what works and what doesn’t. So you need to be comfortable with failure because it will be part of the discovery process.
Why does it Matter?
The main reason for a company to undergo digital transformation is that they need to if they want to survive. Did you know, thanks to this transformation:
- 30% of companies increased customer revenue
- 37% of companies increased employee morale
Businesses don’t choose to transform because it’s expensive and risky. They do it because they failed to evolve. If companies want to succeed, they need to merge technology with strategy. According to IDC, digital transformation expenses will reach $2.3 trillion worldwide by 2021 “even amid the pandemic we are living”. A growth rate of 17.1%.
IDC predicts this year 75% of CIOs and enterprises will fail to meet all their digital objectives. According to them, the causes are:
- Ineffective technology innovation
- Cloud infrastructure transition
- Conflicting digital transformation imperatives
To get digital transformation right, businesses must get support and collaboration from everyone in their company. 78% of digital transformation decision-makers say people changes are the most difficult.
What drives it into Transformation?
Digital transformation is about letting go of legacy technology and outdated processes. Even though healthcare professionals use mobile devices, almost 80% still use hospital-provided pagers.
Practises like this are keeping organizations from fully committing to their digital transformation strategy. On average, 72% of CIOs budget goes to existing IT issues. Only 28% goes to innovation and new projects.
Your business needs to invest in increasing efficiency with technology. Agile principles and automation technologies help you gain speed and decrease technical debt. You need to continuously evolve alongside technology.
Sometimes businesses take too long to be ready to adopt new ways of working. This delays digital transformation. 70% of IT decision makers think business executives take too long to make the leap towards digital transformation.
How to Start Digital Transformation
You need to create your own digital transformation strategy. There’s a lot you can learn from other companies that already began theirs. It’s a long and hard process so don’t buy into the misconception that all your competitors are already ahead of you.
Every business has their own unique challenges and requirements. But there are some common points relevant to all companies:
- Customer experience
- Operational speed
- Culture and leadership
- Digital technology integration
You should look at the shared goals when developing your digital transformation strategy.
Even if you don’t think your company needs to transform, you have to consider it. Your competition is doing it as you’re reading this.
So, if your business goes through with the transformation, you’ll be:
- More profitable - 56% said digital improvements increased profits
- More efficient - legacy systems are holding back businesses from becoming more efficient
Your customers will thank you - consumers already adopted technology for their everyday life. They’re waiting for you to catch up.Start your Digital Transformation