The Basics of “Digital Transformation”
In 2015 John Chambers Executive Chairman of Cisco System said “At least 40% of all businesses will die in the next 10 years… if they don’t figure out how to change their entire company to accommodate new technologies”, and when you consider the average age of most board members around the globe, it is not a surprise moving from ‘paper’ to ‘digital’ is something businesses fear, worry or struggle with.
However what businesses need to understand is that it’s not about changing the company to be digital it’s about operating in a digital world. As consumers become more informed by doing research and shopping products online, businesses need to transform the way they operate or, as John Chambers said “die”.
Digital transformation is the implementation of digital technology in all the domains of a business, changing the way it operates and providing value to their customers in a way that’s convenient for them, not the business. This is something many businesses have grappled with for years and need to understand some basics of digital transformation.
Facing the challenges in digital transformation
One of the biggest obstacles for a business when it comes to transforming a businesses to be digital first is the fear of cannibalization. Established businesses are often risk-averse and experience failure of their digital strategies when planning for a digital transformation.
Examples of challenges faced the average business when it comes to this:
Budget constraints - not allocating enough resource
Lack of complete visibility across digital user experience
Complex IT infrastructure - entrenched systems that don’t integrate well with newer ones
Lack of adequately-skilled personnel - expecting existing employees to adapt without training
Lack of proper understanding about prioritizing the digital initiatives - not seeking expert help to steer the transformation.
Physical marketing to digital marketing
Every element of our daily lives is becoming digitised, from the way we shop and entertain ourselves to our healthcare and travel. Digital marketing matters more and more and many businesses struggle to convert from ‘traditional’ to technology - from brick and mortar stores to E-commerce platforms. There are so many reasons for doing this, but the biggest of all is, this is where your consumers are present, and your competitors are advancing. In order to beat them, stay relevant, or maintain your market share, there’s no way other than being present online.
Adopting a customer relationship management (CRM) system is a very effective, and some would say basic, business tactic. It helps in better engagement and interaction with the customers, potential customers, previous, customers, and existing customers. With a CRM you can understand the changes in consumer behaviour and work accordingly to meet their demands and expectations. In terms of transforming your business digitally, this is one of your first steps.
As technology is growing and evolving rapidly, you need to change your current delivery method to a future-proof digitised technique that can help you render value to your customers. You need to reach out to them, stay connected, and deliver things in the way they are comfortable to receive. In order to survive the competition and stay at the edge, you need to work maintaining pace with the rapid advancements, and seek out help with your digital transformation efforts. That’s how you can beat your competitors.