March 22, 2023
Digital transformation is a broad term that most companies blindly understand. Oftentimes, their efforts barely scratch the surface and fail to crack the core of what needs to be changed. That is why many unsuccessfully integrate the concept into their business model.
Contrary to popular belief, it isn’t just merely shifting business operations online. It actually stands on 3 essential pillars to execute a holistic digital transformation: Customer Experience, Operational Process, and Business Model.
Digital transformation refers to the implementation of digital tech to simplify and streamline the company’s work processes on different levels. It involves everything from the very structure of the business model down to specific in-house processes.
It’s a modern approach to adapt to the ever-changing world as a means to raise profitability, improve customer experience, and boost overall workforce productivity. Especially amidst the on-going COVID-19 pandemic, digital transformation is crucial to ensure business continuity given the safety protocols that limit any kind of physical interactions.
As simple as it sounds, it requires a deeper understanding of how to achieve it holistically. Several companies make mistaken assumptions that digital transformation is just a one-time project and that the IT department can manage it alone.
Those are just some of the many common mistakes that lead to wasted time and resources. Nobody wants that. So to prevent this from happening, it’s important to structure your innovation strategy with the right foundations.
Based on recent studies, 45.9% of businesses worldwide put customer experience as their top priority, followed by 33.6% on product development, and 20.5% on pricing.
It wasn’t like this before. This year, more than ever, revealed the importance of investing in customer experience to generate sales and revenues for companies. According to Forbes, customer-centric organizations were 60% more profitable than those that don’t.
There’s a lot of aspects to create a more satisfying customer experience. Here are some of the factors that should be considered:
Operational Process Transformation basically refers to the internal aspect of digital transformation. There’s a concept called “process modeling” which highlights adding value at each stage of your business operations. Here are three components that you can look at:
All these combined perpetuate a better flow of information and team synergy, which encapsulates the very essence of digital transformation.
Last, but probably the toughest pillar to build, is the Business Model Transformation.
Aside from convenience, you have to show customers what’s your purpose for going digital. You need to stand out from your competitors by creating disruptive innovations that can add value to the market.
One research illustrated Waze as an example. Instead of just being an online map application, it paved the way for the transportation sector to build a collaborative vehicle GPS. Users can contribute routes to help fellow drivers get to their destination faster with its smart navigation, real-time traffic updates, and voice commands.
The real-time traffic updates is the social aspect of Waze. Drivers can alert the application and share information about road blocks, traffic jams, accidents, etc. It focused on the community aspect of the typical GPS system, which became its main differentiator.
Remember that shifting digitally doesn’t only encompass transferring all your resources online. It needs to be different and valuable enough for consumers to generate sales. Otherwise, there would be no point in your efforts.
With all these in mind, does your company stand on key pillars of digital transformation?
Digital transformation is a tough case to crack. Handling the customer experience, operational process, and business model development cannot be done by just a single person or department alone.
You would need key specialized leaders who are equipped with the right knowledge and skill sets to conceptualize strategies and lead employees in implementing necessary changes. That’s how the right foundation can be built.
In case you’re looking for qualified talent to help you on this aspect, get in touch with JB Hired and source the talent your digital transformation needs!