Digitalization is not an option, it’s a necessity.
According to John Chambers of Cisco Systems, “Nearly 40% of all business will die in the next 10 years if they don’t figure out how to change their entire company to accommodate new technologies”.
Digitalization is becoming a buzzword in the business arena. Before we move further, let us take a look at how Massachusetts Institute of Technology defines the word digitalization.
“The use of technology to thoroughly improve the performance or reach of enterprises”.
Businesses are well aware of the benefits associated with digitalizing their operations, but it takes much more than cost. The process is filled with various vulnerabilities, for example, doing too much at once without knowing the prospects and ROI.
Before you digitalize your business process, make sure you have a clear picture of what you want to achieve.
For instance, the process of digital transformation is meant to do one of the following things.
- Delivering existing processes efficiently
- Delivering a completely new and innovative process, approach to market or business model.
It takes a lot more than just transforming your processes, adoption of technologies or improving the business processes. The realization of digital transformation is indeed a great step, but that does not mean you have achieved it successfully. Majority of companies don’t realize the need for assessment and just take the dive into implementing it.
If you are thinking of digitalizing your business process, make sure to plan well and move ahead in a strategic manner. This post offers some insight into the common digital transformation mistakes that every business should avoid. Have a look!
1. Focusing on Short Term Goals
Digital transformation is not a short-term investment or something that would work on the autopilot. With the passage of time, you have to change it as per the evolving business needs. Most of the companies overlook the need to change their digital strategy.
According to the McKinsey and Company, standards that are focused on the short-term such as ROI can be deceptive. Comparatively, non-traditional metrics that evaluate digital adoption like digital engagement levels registration on digital channels are optimal ways of determining an organization’s digital transformation success.
McKinsey stresses that foundation of an organization comprised of its processes, technologies, value proposition and people must be altered with the long-term view in mind. Else, the progress in digital transformation will stay far behind.
2. Ignoring Customer Experience
Depending on technology for digital transformation and ignoring customer experience would result in missing the bigger picture. The customer experience should always be preferred while technology should be taken as a facilitator or as a mean to automate the processes.
If you were just automating your processes through digital transformation, what would be the use, if no customer remains on your list? Serving the needs of specific chunk of people while ignoring the masses would ultimately lead to shut down. For instance, you own an e-commerce store with an app. How would the app benefit customers, if they find no means to interact with the customer support.
Make sure that your digital transformation strategy is not just about deploying digital technology in your organization; in fact, it’s more about delivering value, focusing on customers experience and making the processes seamless.
3. Failing to Scale Up
Due to unforeseen market conditions and changes, modern organizations need to be more flexible and adopt a more agile approach. The digital transformation should not be restricted to the current needs but also address the forthcoming opportunities that need to be addressed timely.
The majority of organizations rush for digital transformation and don’t take transition into consideration, failing to scale up their processes. If you are thinking of digital transformation, make sure you set the right approach that not only addresses present needs but also able to scale up with time.
4. Doing Too Much at Once
Digital transformation is needed at any cost, but that does not mean to deploy everything at once without considering the need. In other words, digital transformation is best when you prioritize your needs. You have to consider the cost-benefit analysis, evaluate your budget, resources, and capabilities. Based on these factors you can prioritize from top to the least.
For a digital transformation on a larger scale, you need to discuss with the key stakeholders and devise a roadmap for the changes you need to implement. Key stakeholders include management team, customers, end users, business team, government bodies, and operation team.
5. Not Hiring Skilled Professionals
Digital transformation needs skilled professionals who are well aware of the technologies being used. Most of the companies don’t realize the power of hiring skilled professionals to deploy digital strategy.
The statement can be supported by the study revealed by MIT that states that an investment in technology is of equal worth to the investment in hiring the skilled resources. If you are thinking of saving money and implementing digital transformation, you will face the consequences eventually.
6. Adopting Digital Transformation of Competitors
Many companies fall into a common trap —copying the competitor’s strategy and offering the same products with a similar business plan. Even if your competitor were in the same industry, mirroring the same digital transformation would lead to catastrophe.
Make sure to analyze every aspect of your company including the business plan, long-term goals, and resources available — and then build a unique value proposition. This exercise will ensure that devise your own strategy and adopt digital transformation after considering your unique business value, instead of blindly copying the competitors.
Conclusion
Digital transformation is the new buzzword and transforming largely the way businesses are operating. Adopting digital transformation can help you optimize the existing processes, explore new business opportunities, improve customer experience and acquire valuable insights to take right decisions.
Companies need to adopt a structured, thoughtful and scalable approach to reap the benefits of digital transformation. Undergoing a digital process is not an option; it is more than a necessity to ensure the survival of your company.
[…] Related Post: 6 Digital Transformation Mistakes to Avoid at Any Cost […]