What is Digital Transformation and How Can It Help You Grow and Scale?

As we approach the new year, we may find it’s time for reflection and New Year resolutions. What can we do better in 2024? Where can we succeed where we once failed? How can we set and achieve business goals that help our organizations thrive in the next 12 months and beyond? A digital transformation may be the answer, but what is a digital transformation, exactly? And what does it have to do with growth?

What is Digital Transformation?

Digital transformation is when a company focuses on their people, processes, and technology to effect radical, positive change in their organization.  It involves integrating digital technology into all areas of a business, fundamentally changing how it operates and delivers value to customers. This can include implementing new software and tools, automating processes, and utilizing data analytics to make better-informed decisions. Digital transformation is widely seen as a way of sparking innovation, embracing positive change, and finding the organizations strengths and honing them to a fine-tuned point.

What are the Benefits of Digital Transformation?

Other than the obvious benefits of growing your company and drastically improving quality of life for staff, digital transformations bring a host of additional, more subtle benefits for organizations that take the plunge.

Greater Efficiency

The wonder of new technology is that a lot of it is geared around improving efficiency and streamlining processes. This is the entire crux of the AI movement everyone is so up and arms about. These tools are able to operate at a scale and speed like no other, allowing your team members time to focus on more or other tasks entirely; essentially what they do is give one employee the time and capacity to work at the speed of two or three.

Enhanced Customer Experience

Technology is very capable of improving a customer’s experience. Products like Drift, ADA, and the like are all geared around making the customer’s entry into your sales pipeline smooth, helpful, and painless to the point where they may not even realize they’re entering a pipeline. In today’s world, the sales process does not begin and end during business hours, customers are visiting your site, researching your brand, investigating your services, and doing their own research around the clock.

Scalability

In business, scalability refers to the ability of a company to handle a growing amount of work, demand, or expansion effectively. A business is considered scalable when it can grow its output or performance level without a proportional increase in its costs or resources. Essentially, scalability allows a business to accommodate growth and increased demand without negatively impacting its efficiency or profitability. Digital transformation efforts ensure that you’ll never be left with needs outstripping your capabilities, as your tech stack will be built from the ground up with your growth in mind.

Data-Driven Insights

Most companies have more data than they know what to do with.  With the rise of big data and analytics, companies now have access to vast amounts of data that can provide valuable insights into their operations, customers, and market trends. By leveraging this data through different tools and technologies and training your staff on how to best utilize the data for businesses can make informed decisions based on real-time information rather than relying on guesswork or intuition. This leads to improved efficiency, cost savings, and increased revenue.

Cost Savings

Everyone’s favorite. Yes, digital transformations end up saving you large sums of money in the long run. Think of your business like your car. IF you take care of it over time and work on regular maintenance, you’ll save a boatload on repairs and stay out of the mechanic’s shop. Think of a digital transformation as a form of business maintenance; it is a process and there can be some growing pains. But if you stick to it and stay the course, you’ll see the changes reflect in your budgets and bank accounts.

What are the Challenges of Digital Transformation?

You’re probably sold on a digital transformation by now. At least if you’re almost 700 words into the article, we’d hope so. It’s clear there are a host of benefits for undertaking a digital transformation.

So why isn’t everyone doing it?

Like most things worthwhile, digital transformations require a lot of work.  In fact, 70% of all transformation attempts fail; a staggering number. It’s clear there are some hurdles standing between you and a successful transformation. Let’s take a closer look at some of the most common challenges faced by companies having a go at digital transformation:

What is the Best Way to Manage a Digital Transformation?

By now you’ve realized digital transformation is a big proposition; the epitome of high-risk high-reward business decision. But is there a way to mitigate that risk and ensure success with your efforts?

Change management protocols can certainly help the team deal with the ongoing changes during a transformation.  Change management is  a structured approach to transitioning individuals, teams, and organizations from their current state to a desired future state. It involves understanding the changes that are required, communicating these changes effectively, and supporting individuals through the transition process.

In addition to change management protocols, there are other important factors to consider when managing a digital transformation. One key aspect is having a clear and well-defined vision for the transformation. This means setting specific goals, identifying areas of improvement, and creating a roadmap for how to achieve them.

A business blueprint is one of the most effective ways to manage the transformation process. A business blueprint is essentially a guide that outlines the current state of the organization, the desired future state, and the steps needed to get there. It includes an analysis of existing processes, systems, and technologies, as well as recommendations for improvement.

Want to Learn More About Digital Transformation?

We have plenty of additional resources available for more information on digital transformation.

• Key Strategies and Steps for a Successful Digital Transformation 
• Webinar: Navigating Digital Transformation 
• Digital Transformation: People Centric Change