What is Digital Transformation?

In layman terms, Digital Transformation is integration of digital technology bringing in fundamental changes to how your business functions and how you deliver value to your users.

As organization leaders, CIOs and IT heads are looking for new ways to deliver better services and solutions to their end customers while improving employee and sales productivity and reducing operations costs. This vision starts with understand gaps in processes and emerging technology trends. End goal is to create a Digital Organization that provides a true value to their end customers with an Omni-channel experience while providing internal stakeholders an environment to grow and improve.

Approach to Digital Transformation differ depending on size of the organization. Some mid-sized organizations, choose to adopt Digital Transformation as a top-down approach, implementing their Digital Transformation plan first at a management level and then filtering down to the individual departments.

Established organizations use a more strategic approach with department-level transformation plan, starting with resources that directly or indirectly impact customer experience, and then moving on to assets supporting the improved customer experience like customer services.

Let’s dig in more to find out why organization should adopt digital transformation in 2020:

Customer Experience:

Customer Experience is now becoming an important differentiator for customer centric organization. CX is now an important differentiator for customers, overtaking brand and product.

This highlights the importance the organization place in build not just an engaging and customer centric digital assets but also equipping the marketing & support teams with custom-build and integrated systems.

Customers no longer accept cluttered and clumsy products or services, just because they are engaging with an organization of repute. Organizations need to deliver innovative products or services while offering meaningful interactions and experiences to delight the users. This helps foster brand loyalty and create a returning consumer base.

Moreover, Customers are now more likely to return to your brands even if they face problems. As per the research by Walker Information, 91% Customers are likely to return to a website if customers have access to a Knowledge base or self help. 57% Customers are likely return to a brand even if the buying experience has not been satisfactory but resolution to their problem is swift and informative.

Read More: Why Customer Experience Is Important?

Employee Experience:

This is not just about providing your employees with the latest systems, devices, and applications. It is about providing a interactive and fulfilling experience to your employees.

Research has shown that organizations that invest in a great employee experience have a more productive and engaging workforce that results in a better customer experience. Digital transformation helps enterprises the right tools that are needed by people to access everything from anywhere.

Process Optimization:

In order to deliver a great employee as well as customer experience, a company requires digital processes, streamlined workflows, automated tasks, and a lot more. This would help them create efficiencies for the organization.

Product Digitization:

Using the right technology can help to enhance the product or service. Digital transformation can help organizations stay on the top of their game by using latest advancements in Cloud Infrastructure that can meet the changing customer demands.

Why Adopt Digital Transformation?

According to IDC, more than $1.97 trillion would be spent on technologies and services that enable digital transformation in 2022. Organizations all over the world have already begun their digital transformation journey and there has been a growing need for the companies to adopt this rapidly growing technology to increase agility and speed for the entire organization. Improving customer experience has become a crucial goal of digital transformation.

Benefits of Digital Transformation

Increased Mobility

Users spend several hours on their mobile devices and so do the employees. Agile organizations should focus on building mobile solutions that deliver the sale experience to the users across all the devices such as smartphones, tablets, laptops, and physical offices also.

Most of the digital transformation projects consider mobility as a central theme and focus on user experience for mobile platforms. Enterprises take advantage of the mobile capabilities to improve productivity and increase operational efficiencies.

Enhanced User Experience

Businesses have started adopting new technologies to enhance their work productivity through more intuitive interactions. Enterprise applications with cumbersome user interfaces can make it difficult for the employees to manage their tasks, even if the backend is efficient.

Incorporating digital transformation can streamline the processes and make it easier for the workforce to manage their everyday tasks resulting in greater productivity.

Data Security

Effective digital transformation project can help an organization to keep the data secure. The stakeholders need to be vigilant about protecting user information and sensitive data. Organizations need to adhere to a lot of international privacy laws.

Finding The Right Digital Transformation Solutions Provider  

Embracing digital transformation is a long-term strategy that involves cultural and technological changes to bring in lasting business and organizational success. The goal is to bring changes in the existing software, business processes, development methodologies, and roles and responsibilities of the workforce within an organization.

In short, digital transformation strategies should focus on two major aspects: they should serve the customers better, and better serve all the stakeholders, including all the employees who contribute to the business success. To achieve that, organizations may need to identify first answer two critical questions, whether to build in-house capacity or search for a digital transformation partner.

Even though most organization would like to develop certain in-house capacity to facilitate Transformation, very few are able to identify, allocate and manage the varied levels of resources required, and afford Large Capital Expenditure.

What Are The Common Challenges of Digital Transformation?

Failure To Lead With A Strategy

Digital transformation cannot be a one-and-done project. It is an ongoing project that may involve constant nurturing and updates. Implementing the right technologies from time to time and updating the processes to see how it fits in your existing system can be challenging.

If you have a huge infrastructure that is constantly updated on a regular basis, you may require to change the digital transformation strategy from time to time to align it and ensure that it can support your business processes.

Lack Of Knowledge Within The Team

Sometimes, the leadership team may not be keen on adopting the digital transformation processes for their businesses due to some reasons. They may not be aware of the benefits of digital transformation or may not know how it can support their business. Some business owners may be reluctant to invest in digital transformation as they may feel that it requires a hefty investment and they may be unaware of the ROI.

A Digital Transformation Partner on the other hand comes with a technical expertise, already has experienced and certified resources available, and comes with domain expertise. A solution partner will be able to understand your objectives better, and will also help mitigate risks:

• Deliver better customer service
• Increasing employee productivity
• Faster time to market
• Gaining better insights to customers’ requirements and personalize products and services

Wrap Up

Digital Transformation can do wonders for your business when implemented correctly. It helps to improve the processes, focuses on enhancing customer experiences, and improve employee experiences.

It creates new opportunities and possibilities to improve the business processes and existing methods used within an organization. It’s time to reconsider everything related to your business and jump into the plethora of digital transformation to run your business more efficiently than before.

Here is how we helped a leading Insurance Service Provider monetize their digital assets and reduce customer churn. Download Now