7 Key Factors of a Successful Digital Transformation
We live in the digital age where technology is the main driving factor of business innovations. While some see this technology as nothing more than a headache and something they have to deal with, many business owners see this technological advancement as a new and lucrative opportunity to give their business a serious boost.
70% of businesses see it as an opportunity and are welcoming this digital transformation as a way to move forward. Since all enterprises generate data daily, they also need data to remain relevant, competitive and keep their customers happy.
With all this in mind, let’s see how digital transformation helps a business build an effective data pipeline architecture and drive success in the overwhelmingly competitive digital business landscape.
What Is Digital Transformation?
Digital transformation can be described as a process that encompasses a wide range of actions with one common goal – to take all digital technologies and fuse them to create a data pipeline that will streamline all relevant data and fuel all business areas.
Such a transformation aims to help an organization re-invent, optimize, and improve the existing business processes according to the advantages and challenges of the modern digital age.
Businesses are to abandon obsolete and outdated work tools and methodologies and embrace implementing and integrating the latest, most advanced tech solutions. Although many companies still believe that digital transformation was imposed on them, the truth is that it’s a necessity to ensure business success in the online business environment.
Since data now drives the entire modern world, digital transformation can boost your business in many different ways:
- It allows you to gather more accurate and competitive data to improve your decision-making and optimize revenue streams;
- It improves data collection;
- It improves collaboration between departments and teams in your company;
- It allows for better resource and asset management;
- It helps you create a better customer experience;
Now, since you know how useful digital transformation is, let’s see the critical factors for making a successful digital transformation.
1. Begin Your Transformational Journey with a Clear Goal
Start your transformation by determining a clear goal you want to achieve. Drive the change from the outside by taking a customer-driven business approach. We mention this because the entire modern business realm is driven by the ever-evolving needs and demands of customers.
While your transformation is an excellent way to make your company more competitive in a newly shaped business landscape, it should also be a means to achieve the main goal – delivering real value and customer-centric services to provide each consumer with an exceptional customer experience. The goal you determine will define your new DX strategy.
2. Come Up with a Dedicated DX Team
Making your digital transformation with success requires a dedicated DX team of experts who will focus on solving the problems and overcoming the challenges of successfully transforming your business.
Many businesses make a mistake in using their existing teams to perform DX tasks, but this is wrong, as they lack the knowledge. Your team needs training and education in the DX sphere to acquire the necessary knowledge and skill to tackle the challenges. With a dedicated team, you can solve any problem that may come with:
- The new digital and competitive business landscape and industry;
- Technical operations and internal business processes;
- The need for new cross-industry operational skills;
- Business and technology changes that you need to implement to drive DX success.
3. Get Your Senior Management on Board with Your New DX Initiatives
If your senior management is supportive of your new DX strategy, get them on board with the latest change to start transforming all organizational areas of your organization.
Through cultural adjustment, compensation incentives, reorganization adjustment, training, and communication, you can provide everything your company needs to support your new DX initiative.
4. Ensure You Have Dedicated Strategic Funding to Drive Change
Transforming your business into digital machinery is a costly matter. The best way to look at it is to see it as a long-term investment.
As such, it requires more than just your average operational expense. Therefore, it would be best to ensure you have dedicated strategic funding to ensure your transformation goes according to plan.
5. Balance Your New DX-Driven Culture and Business Models and Your Traditional Operational Model
DX implementations are fundamentally different from your traditional operational business model. In some cases, these implementations can cause problems with your existing systems and operational processes.
If you want to handle this challenge as painlessly as possible, it is best to educate your organization about new DX technologies, processes, technical details, and procedures.
This is how you can ensure a balance between your new DX-driven business and culture models and your traditional operating model. This is the most effective way to seamlessly integrate new DX initiatives into your existing model or operations.
6. Tackle All Aspects of Your DX Integration
Ensuring you have a sufficient budget and educating your team to get on board with new technologies and operational models is just one side of the coin. The other is taking care of the internal audit, testing, cybersecurity, and enterprise risk.
Since these are critical aspects of your organization that can make or break your business, we recommend that you involve these business functions in all your operations before problems arise or escalate into something beyond repair. The earlier you apply these aspects into your DX integration, the easier it will be to implement new procedures and technologies.
7. Measure Your Success Through Consistent Monitoring
Driving such a huge change like digitally transforming your business is an effort that requires constant learning, performance measuring, and gathering knowledge to perform better. The internet is an ever-evolving environment that poses all sorts of different challenges regularly.
Track all relevant metrics for success at all times and communicate the results across your organization. This way, you will ensure that your entire organization is up-to-date with the latest news and events. The more data you gather, the more you learn and adapt as new challenges arise.
Digital transformation is a way to evolve your business into a more effective and customer-centric mechanism that utilizes the latest technology to provide your organization and your customer base with exceptional and reliable services. If you stick to these vital organizational factors, driving DX success shouldn’t be a problem.
It’s not that difficult to jumpstart your digital transformation, although it’s a process and requires special attention and a healthy dose of tech-savvy knowledge. However, if you manage to tackle it, the benefits will heavily outweigh the obstacles it took to get your business organization there.
Your digital transformation is the very first step towards ensuring a thriving future in the new digital business realm. Become the change yourself and set an example in your business niche.