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  • Navjyot Gill

What is a Digital Transformation Strategy?


Business models are evolving rapidly to cater to customers who want more. Customers are more knowledgeable, consequently, their demands have increased, A standard business plan that was formerly, good is obsolete today. All businesses depend on customers, however, customers want more than just the regular run-of-the-mill products or services that were once acceptable.

Organizations need to devise a plan to cater to the growing demands of the end-user. This is where a digital transformation strategy must be in place to identify the path that every ambitious business enterprise must incorporate to stay ahead of the others in their respective domains.

The Significance of a Digital Transformation Strategy

Essentially, every nosiness must be more efficient, productive, and profitable and this can only be achieved by integrating it with the latest digital technologies available and incorporating them in a structured strategic manner. Manual methods that were once sufficient are no longer relevant. Change is the need of the hour!

A good digital transformation strategy must involve effective digital marketing to enhance user experience [Ux]. It’s a given that organizations will need innovative digital tools to satisfy this requirement. Most customers are tech-savvy and use their preferred technology to stay in time with the emerging technological trends.

Businesses must be armed with more sophisticated techniques or strategies and employ systems like Artificial Intelligence {AI] and Machine learning {ML] to be well positioned to offer advanced services to their customers before they request or demand them. While a well-designed website which was once considered the ultimate business solution to attract customers has limited relevance in context with the fast-changing prevailing market dynamics. A well-defined digital transformation strategy will provide a distinct roadmap of how to reposition your business objective.

What makes a Good Digital Transformation Strategy?

A good starting point will be the following steps, where each one is vital and cannot be overlooked:

  • A good strategy must have the potential to make an accurate diagnosis of all the operations that co-exist in your business model. Every process must be evaluated in terms of efficiency and value-added to the organization.

  • The strategy must advise the underperforming processes and the necessary steps to optimize them in the order of preference. The worst performing must be attended to with utmost priority.

  • It must provide a reasonable plan of action that can be initiated and sustained after estimating the organization's strengths and weaknesses and its financial standing or capabilities. For instance, asking a small business to employ expensive digital tools will not be a practical approach, especially if cannot afford to do so presently.

Implementing a Digital Transformation Strategy

Digitizing all the processes of an organization may not be the best approach. There could be existing processes that are outperforming in terms of output efficiency and cost-effectiveness that need not be digitalized. You must not paint the entire organization with the same brush. Acknowledge its performance and move ahead to address weaker sectors.

A good strategy will be to reposition the organization to be in tune with the prevailing digital economy. This may involve identifying new opportunities that can propel the business model into potentially profitable markets.

It matters little if the digital transformation strategy is employed using a top-down approach or a bottom-up one, the key will be the optimal synchronization of all the newly introduced digital systems.

An effective transformation will be successful only when the entire organization is wanting and willing to make the changes. Change can never occur on its own. According to the CEO of Ionolgy, Professor Niall McKeown says” Most businesses say they want to change but their actions say otherwise”.

Getting the Basics Right

Without a sound digital transformation strategy in place, there cannot be an effective action plan. A team that is responsible to develop this strategy must have a similar digital mindset and be alienated from the traditional approaches of the past. There must be a direct correlation between the mind shall-importunately employed. This can be the all important factor that will determine the effectiveness.

The quality of communication with existing and prospective customers forms the backbone of a dependable strategy. Everyone must be on the same page to understand the immense value that digital transformation will make. The value of the outcome of the changes must be embedded in every participant's mind. To encourage complete involvement.

A digital transformation must make a significant difference, a few marginal changes will not provide the desired result. Innovation must be the key focal point of this strategy and a culture of innovation must be inculcated within the entire framework. A common issue is that most people consider good ideas to be innovation and this can create confusion. Innovation has to address the precise needs of the customer or innovate to fill in the shortcomings of the existing business model.

Advanced technology has to be present for innovative ideas to be successful. Technology is the tool that quality innovators use to develop newer innovations. Business leaders must learn the fundamentals of technology, while this may not be possible for every leader, they can seek expert guidance from established consultants who understand precisely where and what technology would make good sense.

The quality of Data that is input to generate a positive outcome will be an important determining factor. In simpler terms; the input is responsible for the output. There must be no compromise in this regard. This is the reason why a clear diagnosis of the problems that a business is facing must be high-quality input.

In essence, digital transformation must directly address the business problems.

Final Words

Employing a digital transformation strategy looks good in theory and most will agree with its implantation. However, putting it into practice is no easy task for a new entrepreneurial start-up or changing a traditional family-oriented business into a high-performing one. Many will not understand the basic concepts or the advanced technology-driven tools that need to be integrated into a specific business model.

Undoubtedly, the expert guidance of a tried and a tested consultant will play an invaluable part. Let Alpha BI Consultancy show you the way forward. Call for a free consultation.

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