There’s no denying that today’s businesses, no matter the market or size, are facing increasing pressure to boost investments in innovative technologies. Fierce competition and a digitally-driven landscape have made it necessary for organizations to launch “digital transformation” initiatives in order to survive.
A recently released report from PointSource confirms the digital transformation trend, finding that at least a quarter of companies plan to invest more than 25 percent of their budgets in artificial intelligence, blockchain, voice-activated technologies or facial recognition technologies. Furthermore, 94 percent of companies have increased their focus on digital growth within the last year, and 90 percent of respondents said digital plays a central role in their overarching business goals.
Interestingly, the report also shed light on the hurdles that businesses face when undergoing a digital transformation, noting that over half the organizations surveyed (53%) feel that they’re unprepared to effectively use the technologies they plan to acquire.
Launching a digital transformation initiative simply for the sake of adopting new technologies will never create the lasting benefits they are designed to provide. In fact, investing in digital transformation without an all-encompassing technology strategy can be detrimental to the company, causing greater inefficiencies and discontent.
With that in mind, here are three things to consider when launching a digital transformation:
- Are you thinking in terms of what’s best for your business model, customers and goals?
This may seem fairly obvious, but sometimes companies get caught up in a herd mentality. In other words, just because a particular solution worked for another organization doesn’t mean it’s the best fit for yours. It’s important for businesses to spend time mapping out both short and long term goals in order to make informed decisions on the solutions that are suitable for their specific needs. Another way to think about this is to consider what technology investments would bring the most value to your customers, since customer satisfaction often translates into greater revenue and growth.
- How will you measure the value you intend to create?
A digital transformation that doesn’t incorporate the ability to measure the value it’s trying to provide is hardly beneficial. Without the ability to effectively measure KPIs, companies are not only robbing themselves of valuable insights, but are unable to make the necessary adjustments that will further profitability and revenue. For example, as an article from Harvard Business Review notes, “when judging the success of the Developer Network, Apple can measure the number of developers creating apps for their app store, the amount of money generated by those apps that Apple shares with their community, and customer satisfaction with apps.”
- Are you making the necessary internal adjustments?
Digital transformation is more than just adopting and utilizing innovative technologies – it requires significant changes to be made across an entire organization in order to yield the greatest ROI. Often times, companies fail to change their internal structure during a digital transformation, causing the team leading the transformation to be siloed from other teams within the organization. A successful digital transformation requires cross-functional support and integration across all teams.
Launching a digital transformation is not necessarily easy, but the value it provides when done well is worth the time and effort. Indeed, a survey conducted by SAP found that digital transformations led to increases in employee and customer engagement, revenue, and profitability, among other benefits. Organizations that have not at least begun to think about engaging in a digital transformation are increasingly vulnerable; according to a Forrester report, by 2021 every business will become either predator or prey.
If you’re thinking about launching a digital transformation, but don’t know where to start, contact TTG for a free consultation. We specialize in helping companies develop a robust digital transformation strategy alongside the technical implementation of solutions best suited for their specific business needs.