Ten Things a Business Needs to Know to Employ Digital Transformation


Ten Things a Business Needs to Know to Employ Digital Transformation

Ten Things a Business Needs to Know to Employ Digital Transformation

We live in an ever-changing world and as technology becomes part of our everyday lives; the question businesses now ask is ‘how can we use this to transform ourselves?’ This article will discover the five main domains to target and the five obstacles to overcome when a business plans to create a Digital Transformation Strategy

Research was conducted to identify the key drivers for organisations to rethink their digital strategy:

55% evolving customer behaviours and preferences

53% growth opportunities in new markets

49% increased competitive pressure

42% new standards in regulatory and compliance

(Huffington Post, 2016)

These results have shown that understanding the new customer, identifying how sectors can merge, creating innovative initiatives to stay competitive and adhering to modern rules are the first steps a business should take to implementing digital transformation.

After a business has recognised the need for change, there are five domains that should be focused on:

 

The Five Domains of Digital Transformation (Colombia Business School, 2016)

 

Customers

Previously, marketing strategies had to appeal to the mass market to make sales, so advertising was done on a large scale;
most commonly television broadcasts at peak time. The flow of communication was always one-way, as customers did not have a say in what to
purchase. Nowadays, consumers are smarter; they look for a brand’s ethics, they turn to friends for advice on what to purchase and they research before they buy. Communication is now two ways, as the consumer will tell a company what they need to change/sell.

Values

In the past, value proposition was defined solely by the industry and that you need to optimize your current business model for as long as possible. However, now consumer needs heads the definition of value proposition and that to be successful, you need to evolve before there is a need to.

Competition

Previously, the only competition a business faced was in its defined industry and there was a clear distinction between the partners and any rivals. However, today competition is now fluid; it is unclear who your competitors are and only the companies that sell across multiple channels stand out.

Innovation

In the past, all decisions were made based on seniority and their intuition. And the perception of innovation was that it was expensive, failure
cannot occur due to the high prices and all the focus was on the ‘finished’ product – so it must be completed and profitable. Now ideas are tested constantly, by anyone in an organisation; the costs are much lower and failures are learned from.

Data

Valuable data, in the past, was expensive to generate and companies constantly faced the challenge of storing the mass amount produced. It was used as a tool to optimize processes and was managed through operational silos. In today’s digital age, companies have taken the fact that data is continuously produced, and have transformed this into valued content by collating everything documented, logging it via Cloud technologies and cross referencing through silos.

 

These five key domains imply that the future is here now, and that Digital Transformation can be implemented as soon as possible with
immediate effect. However, the Japanese Business Federation, aka Keidanren, identified that there were ‘five walls’ to overcome when trying
to achieve a successful business strategy.

 

 

The Five Walls (Keidanren, 2017)

 

Human Resources

Reforming the education system

Enabling society to become IT literate

Increasing specialized skill-sets

 

Technology

A universal knowledge foundation

Enhancing cyber security

Robotics

 

Legal Systems

Regulatory reforms

Digitization of administration

A collective foundation of knowledge 

 

Social Acceptance

Education initiatives

Remaining aware of social implications and ethics

Including people from every social sphere and age group

 

 Ministries and Agencies

The forming of national strategies

Integrating a Government promotional system

Defining state subsidies for innovative companies

 

 

These five walls each have a lot of aspects to be broken down, which indicates that digital transformation is an ongoing process which
cannot be implemented immediately. However, this should not deter organisations from employing the strategy, because the research suggests
that long term benefits will result, such as: being seen as highly competitive, increasing profit margins, high levels of optimization, encouraged
innovation and a productive way to do business.

Digital First are currently using these factors to become a better organisation and are already seeing benefits. The future is an exciting
concept and we can’t wait to get there.

 

Will you, or are you using this for your business? If not, why? We’d love to hear what you think!

 

 

Posted by Lucy Richards

Lucy is the Marketing Manager at Digital First, she focuses on social media management, content creation and branding. She previously worked in the investment banking industry for over two years, but decided to pursue her dreams of travel and marketing; and emigrated to Melbourne, Australia. She graduated from the Glasgow Caledonian University in 2014 with a Bachelors degree in Entertainment and Events Management.

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