5 concepts of digital transformation: what are they?

A digital transformation is a shift in how companies think and operate. It is unique to every industry and business, impacting all business processes and tools in an effort to take organisations to new levels of operational productivity and efficiency. 

The 5 concepts of digital transformation inform the ethos and individual components of all digital transformations. They are ideas that can help ensure that your information technology (IT) strategy and business goals are aligned and build upon each other to create a new, more dynamic company.

1. Digital transformations are business strategies

A CPA Australia report states that “enhancing operational processes is the major driver for businesses to adopt technology”. In a multi-faceted environment like your business, it can be easy to mistake digital transformations as being the responsibility of the IT department. This should not be the case. A digital transformation is not another term for ‘IT strategy’ (though the latter are integral to the former). It is an overall organisational shift to improve competitiveness and achieve goals.

It takes into account products and services, the employee base, and customer experience – it coalesces all these components and revamps them with technology to reduce costs, increase profits, and foster business longevity. New technologies are constantly being developed and deployed every year. Business owners ought to invest in these tools to positively impact the business and customer experience, a task made easier with the help of IT consultants.

2. The internal user experience is important

One of the concepts of digital transformation that focuses on employees, the internal user experience specifies that your team members should be factored into your transformation strategies as much as your customers. As stakeholders and employees are impacted by digital transformation, it is important that they are involved in the process. 

This can be done through internal surveys, focus groups, and other employee engagement activities. By involving your partners and staff, you can ensure that changes are realistic and relevant to internal procedures. For example, suppose you are considering deploying artificial intelligence programs into your customer service operations. Reaching out to the workers in that area of your business can provide you with valuable feedback, making your plans not just short-term fixes, but long-term profitable strategies.

3. A strategic plan is a must

According to McKinsey, “70 percent of complex, large-scale change programs don’t reach their stated goals”. Deploying digital technologies (with the concepts of digital transformation in mind) to enhance an organisation’s performance is not a simple task – an effective business and IT strategy are crucial to informing the overall digital transformation plan.

A digital transformation strategy should include:

An effective transformation strategy can help prevent a business from falling into traps, such as making the wrong investments or encountering unanticipated roadblocks. A strategic transformation plan will ground the transformational process and keep everyone focused on the initiative’s central objective – updating and reworking company technology and operations to expand capabilities and become a more competitive force.

4. Data is a key ingredient for transformations

One of the most important concepts of digital transformation, data is essential for driving the aforementioned because it provides a crucial source of insight that can be used to inform decisions and stimulate action. In addition, data helps organisations gain a better understanding of their customers and the market at large – essential for developing and performing transformations that are culturally and financially relevant. 

At the same time, you should not restrict data collection to the planning stages of the transformation. Data enables your individual strategies to be monitored and measured to determine their success. Flexibility is a highly recommended trait to possess during a digital transformation. By continuously gathering data and analysing it, you will be able to track the rollout of your strategies in real time and make adjustments quickly. 

5. A digital transformation is a cultural evolution

Digital transformations allow businesses to reassess their performance and gauge their foothold in the market. They can be used to identify your company’s pain points, re-evaluate your IT strategy, and discover solutions that will shift your peoples’ way of thinking (and approach) toward organisational procedures.  

The technology you deploy will directly impact how your customers engage with your business. It unlocks additional opportunities and methods that may have been inaccessible to you before, providing you, your staff, and stakeholders with a new appreciation for technology. 

This new mindset will allow your employees to gain a new set of skills, techniques, and tools that will make their jobs easier, while your customers will benefit from more dynamic services and products equipped for the modern business landscape.

Leverage the concepts of digital transformation and grow your company with IT consultants

Business leaders are always on the lookout for new ways to boost revenue and morale. Digital transformations are an excellent opportunity to make your company more efficient and profitable, while also improving its employee experience and customer engagement. 

The IT consultants at Muscatech specialise in various services that can help you consolidate the concepts of digital transformation and implement them into your transformation processes. From managed IT services to developing an IT strategy and disaster recovery methods, Muscatech’s IT consultants can support and guide you throughout your organisation’s digital transformation to achieve cost-efficient operations and a competitive advantage that will allow you to lead the market. 

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