Evolving your operations is a vital part of keeping your company at the cutting-edge. And technology is often part and parcel of any iterative improvements you could make to beat the competition.
But to ensure a successful transition, you need to have a robust digital transformation strategy.
“More than half of retailers believe they will have to introduce more technology into their business strategy.
Doing so will allow them to remain competitive over the next five years.”6 Benefits Of Digital Transformation
Without direction, even the best efforts are often led astray. Having a strategy in place ensures you stay on track to achieving your goals.
What Is A Digital Transformation Strategy
Much like every other strategic plan you’ve come across, a digital transformation strategy details your vision for utilising technology to meet and exceed organisational targets.
As trends and tastes evolve, so must the way in which businesses operate.
The familiar may be comfortable, but there is a requirement to always be innovating; leveraging the power of technology to do so.
But the latest software cannot do it alone. It must be adopted and adapted to your specific set of circumstances.
“Executives say the top benefits of digital transformation are improved operational efficiency (40%), faster time to market (36%) and the ability to meet customer expectations (35%).”
This is where an effective digital transformation strategy can be so powerful.
Having taken into account your organisational quirks, you can provision for the application of technology in practice.
Identifying precisely how you can gain an advantage over competitions and secure the best possible results.
Components Of A Digital Transformation Strategy
Having explored the concept of a digital transformation strategy, and touched on its benefits, it’s time to look at what constitutes a sound strategy.
There are 5 key aspects which we’ll dive into below…
1 – Strategy
The first and arguably most important aspect is the strategy itself.
But it is only one part of creating a digitally transformed organisation.
This distinction of a strategy marks the critical difference between simply adding new software and systems and actually undertaking a organisational transformation.
Doing so requires a well thought out, considered plan highlighting well researched areas for improvement, how the improvement will be made and how that improvement will be measured.
An organisation following a strategy, rather than acting on a whim, will reap significantly greater rewards.
2 – Communications
And underpinning this strategy is clear and concise communications.
Creating an effective digital transformation strategy requires universal understanding of the positive impact it will have on the business at large.
“If we fail to convince customers of the value they won’t buy. If we fail to convince our internal teams, they won’t change.”
That means compelling conversations starting from the top, explaining the need for change and fostering enthusiasm that will be passed onto consumers.
After all, if you can’t communicate the value of change, why should people support the journey.
3 – Culture of Innovation
There must be appetite and enthusiasm for change. But not just change for changes sake.
Rather for innovation that puts the business at the cutting edge of the industry.
A digital transformation strategy must address this and nurture the innate creativity of the company at large.
“Many businesses purchase and implement technology claiming to have transformed their business.
What they’ve usually done is made it more efficient which doesn’t create lasting competitive advantage, merely marginal gains.
Transformational change requires constant innovation.”
This starts at the very top and is the reason why senior management buy-in is non-negotiable.
From budget management to championing the cause, effective leadership will enable firms to make decisions quickly and garner enthusiasm across the organisation as a whole.
A common action that promotes a culture of innovation is the clear setting of targets.
Poor communication can be the undoing of even the strongest convictions which is why firms must identify key milestones and targets.
Starting with low hanging fruit to showcase progress and convert the naysayers, establishing and hitting targets is an essential part of both proving the strategy works and securing company wide enthusiasm and a culture prone to chasing innovation.
4 – Technology
You can’t have a digital transformation without technology.
Whether it facilitates improved collaboration, enhanced productivity or increased agility, technology is the vehicle on which your transformation strategy is carried.
When technology provides a more seamless way to work, it helps to move the entire organisation forward.
By aligning separate units, your operation can act as one enterprise.
Having the right technology, moulded and adapted to your unique business needs is vital.
5 – Data
Without data you wouldn’t have been able to identify the problem areas requiring a focussed transofrmaton.
So how can you hope to make a success of it without constant analysis to identify ongoing strengths and weaknesses, trends and troughs?
Only through accurate information can you know how well your strategy is being implemented and how well it is working in practice.
Data is definitive.
Your digital transformation starts with a problem or unresolved need.
The strategy focuses on identifying pain or unmet need.
The communications focus on articulating that need.
The culture of innovation will bring the best ideas to solving that need.
Technology will be used to solve that need.
And data to measure its success.
Only through these 5 component parts can you produce a digital transformation strategy worthy of your ongoing prosperity.
Ready to explore how Anthill’s technology can help in defining your digital transformation strategy? Schedule a demo today.
October 27th, 2022-