Everyone knows about Digital Transformation, from a CEO to middle-level management, but do we actually know the importance and components of Digital Transformation and why is it important for business houses?
Let’s discuss this in detail!
Digital transformation is a broad concept that deals with multiple initiatives. The root of digital Transformation lies in the activities carried out by a firm where it revives the way a customer or employee interacts with the organization through niche technological adoptions. Therefore, we can differentiate the efforts into 2 verticals, namely customer-facing and internal facing.
Digital transformation, also known as technological transformation, includes the outward and inward-facing activities for helping the organization to achieve operational excellence and win over disruptive competitors. The concept of transformation has gained momentum in recent years due to the rise of innovative fields like IoT, Chatbots, AI and Machine Learning.
Our clients often ask about the guiding principles of digital transformation. The fact is that there are no set principles for digital transformation activities. However, most of the technical experts follow a 5 model principle for transformation.
- Creating a transformative vision
- Focussed efforts in building or refreshing your customer engagement model
- Supporting your vision by accommodating secure digital platforms
- Building a data visualization model for better insights
- Champion digital agility through excellent transformation activities
So, what constitutes a successful transformation?
Let’s venture into the steps for digital transformation.
Around 90% of the experts state that the first step of Digital Transformation is understanding your customer. The organization needs to profile its customers, analyse their changing needs, and what can you offer them.
Going deep down into the digital transformation, we can divide them into 5 important steps.
Step 1: Analysing the industries value chain and changing needs of the customers
A value chain is a set of activities that an organization carries out to create value for its customers. Porter proposed a general-purpose value chain that companies can use to examine all of their activities and see how they’re connected.
Step 2: Build numbers!
Define Business KPI’s and goals on strong numbers. Without proper numbers, the digital transformation efforts will lose their purpose midway. It will keep you focussed through the digital journey
Step 3: Decide the right structure and processes
The processes and structure need to be about the people. The process has to focus on the needs and expectations of your stakeholders: customers, suppliers, and employees.
Step 4: The right technology
Digital transformation is not only about spending on technology, it’s about spending rightly. After deciding the vision, the next phase is to select the right technology out of the numerous options available in the market.
Two factors that one needs to consider to choose the right technology:
- Integrate a new digital platform
- Change the existing model and accelerate the time and efforts
Step 5: Involve and integrate
The team has to inform the customers and other stakeholders about the digital transformation strategies. Their point of view is vital and would be beneficial for the long term success of the program.
Epergne’s Digital Transformation program includes implementation efforts like IoT, RPA, BlockChain and many more.
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